Learn about the comprehensive guide to the Saudi labor system
Through this comprehensive guide to the Saudi labor system, you will learn about the strict Saudi laws in every detail of work trends, including wages, working hours and vacations, and termination of the employment contract through the employer or worker. These laws apply to all workers, but there are some exceptions mentioned in the article. Follow this article to learn about the labor system and its provisions in Saudi law, as it will be your guide to understanding your rights and duties, and will be your guide to obtaining your rights if you are exposed to any type of violation:
Sources of the Saudi labor system
The sources of labor law vary to include legislation, custom, principles of Islamic law, rules of justice, and the judiciary. Through the comprehensive guide to the Saudi labor system, you will learn a brief overview of each source.
Learn about the comprehensive guide to the Saudi labor system
legislature
Legislation is the primary source of labor law. One of the most important examples of this is the Labor Law issued by Royal Decree No. M/51 dated 8/23/1446 AH, which regulates labor relations in Saudi Arabia. Legislation branches into three types: basic legislation (constitution), ordinary legislation, and subsidiary legislation.
Ordinary legislation is the main source of knowledge about the rules governing labor relations, but it may not cover all the details.
principles of Islamic law
Islamic law is a source of some provisions of employment contracts, especially those relating to the provisions of offer, acceptance, and validity of contracts. Article 4 of the Labor Law also stipulates the necessity of adhering to the requirements of Sharia in implementing its provisions, reflecting its significant role in controlling labor relations.
customary
Custom plays an important role in shaping the rules of labor law, especially in the absence of clear legislative texts or legal provisions. In countries that adopt Islamic law as a primary source, such as Saudi Arabia. Custom comes third after legislation and Sharia.
Rules of justice and natural law
These rules are based on the principles of reason and natural justice, and aim to amend or supplement laws in the absence of legislative texts or customs. The judge resorts to these rules to resolve disputes based on the spirit of justice and common sense.
judiciary
The judiciary is an important source of labor law, as labor disputes are decided through competent courts in Saudi Arabia. Labor courts were established under the new judicial system to replace labor dispute settlement bodies, strengthening the role of the judiciary in developing the labor system.
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Who is subject to the provisions of the Saudi Labor Law?
Through the comprehensive guide to the Saudi labor system, the provisions apply to:
Every employment contract in which a person undertakes to work for the employer under his management or supervision, in exchange for a wage.
Workers in government, public bodies and institutions, including those working in agriculture or herding.
Workers in charitable institutions.
Training and qualification contracts for persons not employed by the employer, in accordance with the provisions stipulated in the system.
Part-time workers with regard to occupational safety and health, work injuries, and what the Minister decides.
Who is excluded from applying the provisions of the Saudi Labor Law?
The following categories are excluded from the application of the provisions of the Saudi Labor Law:
Members of the employer’s family,such as husband or wife, assets and branches who work in a facility that includes only family members.
Players and coaches of sports clubs and federations.
Domestic workers and those in similar situations.
Agricultural workers, private herders and the like.
Marine workers working on ships with a tonnage of less than 500 tons.
Non-Saudis who come to perform a specific task for a period not exceeding two months.
Learn about the comprehensive guide to the Saudi labor system
Rules for employing workers according to the comprehensive guide to the Saudi labor system
The comprehensive guide to the Saudi labor system in the event of employing workers stipulates that no person is allowed to work as a contractor to supply workers unless he obtains an official permit from the Ministry of Labor, in addition to an annual license that can be renewed based on the discretion of the competent authority.
This license is not granted if there is an employment office affiliated with the Ministry in the region that is able to provide adequate employment services, and it is prohibited to charge any sums of money or material rewards from workers, whether before or after signing the employment contract, in exchange for providing them with job opportunities.
Employer obligations according to the comprehensive guide to the Saudi labor system
Articles 61 to 64 of the Saudi Labor Law stipulate a set of obligations that fall on the employer to guarantee workers’ rights. Here are the employer’s obligations:
Paying the wage due to the worker
Wage is one of the most important rights of the worker and the most prominent obligations of the employer, as wage is defined as everything that the worker receives for his work. The wage must be clear, specific, and legitimate, and the worker’s right to it must be proven once he performs the work, or his willingness to perform it if the lack of work is due to the employer. The wage is an inherent right of the worker and what is granted as a donation is not considered part of the wage.
remuneration elements
Basic wage:
It is the amount agreed upon in the employment contract, and is determined according to time or production.
Allowances and allowances:
such as the cost of living allowance or compensation for family burdens, which are granted in accordance with the text of the system, the employment contract, or prevailing custom.
Commissions and in-kind benefits:
These include the percentages of deals or gifts that the worker receives as a result of his work, and are considered part of the wage if stipulated in the employment contract or recognized.
Wage Protection
The system was keen to protect the worker’s wages as the primary source of his livelihood. This protection includes the following:
The minimum wage is determined by the Council of Ministers and may not be waived.
Considering a worker’s wage as a first-class debt is given priority when the employer goes bankrupt or liquidates his organization.
Strict restrictions are imposed on deductions from a worker’s wages without a legitimate reason. This is only permissible in specific cases, such as recovering loans, social insurance contributions, or compensation for damages caused by the worker.
Deductions are made at specific rates that do not affect their livelihood.
Fulfilling the wage at the specified time and place:
The employer must pay the wage in the official currency, which is the Saudi riyal, at the workplace and during working hours, to facilitate the worker’s receipt of his dues.
Penalties for employers violating wage rules:
The worker has the right to file a complaint with the competent authorities in the event that the employer violates the rules for paying wages, such as unjustified salary delays or illegal deductions. These authorities may oblige the employer to return the amounts unlawfully deducted, or to pay late wages. Fines of up to twice the deducted amount or late wages may also be imposed.
Arrest or detention:
The employer is obligated to pay 50% of the worker’s wages until the end of the case if the worker is arrested or detained in work-related cases or because of the employer, provided that the period of detention does not exceed 180 days. If the worker is proven innocent, the employer is obligated to pay the full wage and recover the amounts previously settled.
Additional regulatory rules:
The system sets strict rules for regulating wages, such as prohibiting the payment of wages during rest times or worker vacations, and ensuring that wages are paid according to the dates specified in the contract (daily, weekly, or monthly).
The law also prohibits agreeing on any condition that violates these rules unless it is in the worker’s interest.
In the event that your salary is delayed beyond the period specified by the Labor Office, or the company goes bankrupt and you do not receive your dues, or if you are exposed to an illegal deduction, do not hesitate to contact the office of lawyer Abdul Majeed Al Rashid for Law and Legal Consultations.
Worker obligations according to the comprehensive guide to the Saudi labor system
The worker’s obligations stipulated in the Saudi Labor Law include the following points:
The worker is obligated to perform the tasks agreed upon in the contract, and the employer may not require him to perform additional tasks except in specific exceptional cases.
The worker is obligated to carry out the work himself, exercise the necessary care, and use preventive means to ensure his safety while working.
The worker is subject to the employer’s instructions related to work only, provided that they do not expose the worker to danger and do not violate public order
Maintaining commercial and industrial business secrets even after the end of the contract term.
If a worker comes up with an invention while working, the invention is owned by the employer, with the worker having the right to a fair equation.
The worker must perform the work efficiently and honestly, and take care of the tools and equipment provided by the employer.
Working compliance with instructions related to occupational health and safety.
Penalties resulting from the worker’s breach of his obligations according to the comprehensive guide to the Saudi labor system
If the worker violates any of his obligations, the employer has the right, according to the comprehensive guide to the Saudi labor system, to take the following measures:
Deduction of a portion of the worker’s wages to compensate for damage resulting from loss or damage to equipment, provided that the deduction does not exceed five days’ wages per month.
Termination of the contract if the worker breaches his essential obligations.
The worker is subject to financial fines in certain cases, such as refusal to work in emergency circumstances according to the system.
The employer has the right to establish a sanctions list that clarifies the penalties imposed on violating workers, provided that the penalties are consistent with the labor system and its provisions in Saudi Arabia.
Do not expose yourself to legal accountability due to your lack of understanding of your obligations at work, so contact the office of lawyer Abdul Majeed Al Rashid, who provides you with a legal advice service that will benefit you in everything related to your rights and duties as a worker.
Organizing working time according to the comprehensive guide to the Saudi labor system
Under Article 98 of the Saudi Labor Law, a worker may not be employed more than 8 hours per day if the standard adopted is the daily standard, and if the standard is weekly, working hours may not exceed 48 hours per week. During the month of Ramadan, working hours for Muslims are reduced to 6 hours per day or 36 hours per week, in consideration of the hardship of fasting.
Any agreement between the employer and the worker that exceeds these limits is considered invalid even if the worker agrees to it. The employer is also obligated to grant the worker periods of rest, food, and prayer during working hours, such that it is not less than half an hour at a time or an hour and a half during the total daily working hours.
A woman returning from maternity leave is allowed to take additional periods to breastfeed her child, which are an additional hour during daily rest periods.
It is prohibited to employ adolescents and women between sunset and sunrise, except in cases where a special decision is issued by the Minister of Labor, such as industrial professions or emergency circumstances.
Lawyer Abdul Majeed Al Rashid’s office provides you with the service of drafting a lawsuit in the event that you file a complaint with the Labor Office due to your exposure to violations that violate Saudi labor laws.
Exceptions to exceeding the maximum working hours according to the comprehensive guide to the Saudi labor system
There are exceptional cases in which working hours may exceed the maximum limit set by the comprehensive guide to the Saudi labor system, as follows:
During annual inventory, budgeting and liquidation work, provided that the excess work period does not exceed 30 days per year.
Emergency circumstances such as serious accidents require immediate repair.
In the event of unusual work pressure, the employer may increase working hours with the written consent of the employer.
During holidays and special occasions, the employer may employ the worker for periods provided that additional pay is paid.
Organizing vacations according to the comprehensive guide to the Saudi labor system
The Saudi labor system specifies a set of vacations to which workers are entitled, as follows:
A worker who has spent a full year serving his employer must be entitled to annual leave. This leave is a right of the worker that may not be waived or agreed to be deprived of, and it varies according to the length of service:
21 days if the worker has spent a full year.
30 days if the worker has spent five consecutive years.
Annual leave may be agreed upon between the employer and the employee for a period longer than the legal period, and annual leave is not deducted from holiday leave or sick leave. Annual leave may also be postponed by decision of the employer, but the postponement must not exceed one year from the date the leave is due. The worker receives full pay during annual leave.
The worker is entitled to paid leave during official holidays and occasions specified by law, such as Eid al-Fitr and Eid al-Adha. If working conditions require him to work these days, an additional wage of 50% of the regular wage will be paid.
If your employer does not agree to you taking your due leave, contact the office of Attorney Abdul Majeed Al Rashid to help you obtain all your due rights.
Preventive protection and health care for workers according to the comprehensive guide to the Saudi labor system
The employer must take all necessary measures to maintain the safety and health of workers in the work environment, such as providing preventive measures against damage resulting from gases, dust, smoke, and waste that may be generated during work.
He must also provide all basic facilities in the workplace, for example: providing adequate lighting in workplaces, equipping bathrooms in proportion to the number of workers, providing safe drinking and washing water, and taking the necessary precautions against fires, such as installing fire extinguishers and training workers to use appropriate equipment.
The employer must commit to providing a first aid kit containing the necessary medicines and supplies to treat minor injuries or emergency cases, and appointing one or more doctors to examine workers who may be at risk of contracting occupational diseases, at least once a year. Recording the test results in each worker’s work records.
A comprehensive guide to the Saudi labor system in the event of expiration of the employment contract
An employment contract, whether fixed-term or indefinite, expires in certain cases:
Expiration of a fixed-term employment contract
A fixed-term employment contract expires at the end of its specified term or upon completion of the agreed-upon work, and it may not be terminated before the expiry of the agreed-upon term except with the consent of both parties.
Expiration of an indefinite employment contract
The employer or worker has the right to terminate the indefinite-term contract with prior notice that allows the other party to prepare for the decision, and this entails some rights and duties.
Cases of automatic contract expiration
The contract automatically expires if the comprehensive guide to the Saudi labor system becomes impossible to implement the contract due to force majeure, and these cases include:
Death: The employment contract expires with the death of the worker, and does not expire with the death of the employer unless his personality is considered in the contract.
Total disability: The contract expires if the worker is completely and permanently unable to perform his work.
Long-term illness: If the illness exceeds 90 consecutive days or 120 separate days in a year, the employer has the right to terminate the contract provided that the worker is notified.
Conscription: The contract expires if the worker is obligated to serve in the military.
Liquidation and bankruptcy: The contract ends in cases of liquidation or bankruptcy of the employer.
Retirement age: The contract expires when the worker reaches retirement age (60 years) for men, and (55 years) for women.
Termination of the employment contract according to the comprehensive guide to the Saudi labor system
The contract is usually terminated by a court decision, but there are cases in which the contract can be terminated by one of the parties:
The employer has the right to terminate the employment contract if the worker commits illegal acts such as assaulting the employer, committing heinous acts, disclosing work secrets, or intentional negligence that harms the employer.
The worker has the right to terminate the employment contract if the employer violates his essential legal or labor obligations, such as non-payment or delay of wages, or assault on the worker.
In both cases, the other party must be notified of its intention to terminate the contract in advance, and the notice period is usually 60 days for workers with monthly wages and 30 days for other workers.
The contract remains valid until the end of the notice period, and both parties are obligated to fulfill their obligations during this period. The worker has the right to seek other employment during the notice period.
However, in cases of unfair dismissal, the worker is compensated for the unfair dismissal, after proving that the dismissal is legitimate and the employer has the right.
You can contact the office of lawyer Abdul Majeed Al Rashid to help you determine the type of unfair dismissal you have been subjected to and to help you obtain your compensation rights.
The impact of a worker’s resignation on end-of-service benefits, according to the comprehensive guide to the Saudi labor system
According to Article 85 of the Saudi Labor Law, if the end of an employment contract is due to the worker’s resignation, this resignation affects the value of the end-of-service gratuity. These effects vary depending on the worker’s length of service prior to resignation, and are determined as follows:
If the length of service is less than two years: the worker is not entitled to any bonus.
If the period of service is from two to five years: the worker is entitled to one-third of the bonus value.
If the period of service is from five to ten years: the worker is entitled to two-thirds of the bonus value.
If the period of service is ten years or more: the worker is entitled to the full bonus. However, there are some exceptions, according to Article 87 of the Labor Law, that affect the entitlement to the bonus:
If the resignation is the result of a force majeure beyond the worker’s control, the worker is entitled to the full reward.
If the worker resigns within six months of her marriage or within three months of her birth, she is also entitled to a full bonus to protect social and family conditions.
When is the end-of-service gratuity paid according to the Saudi labor system?
According to Article 88 of the Labor Law, the employer must liquidate the worker’s rights and pay his dues after the expiration of his contract or work, up to a maximum of one week from the date of expiration of the contract if the termination is on the part of the employer, and within two weeks if the termination is on the part of the worker.
If the worker is entitled to paid annual leave, such as 15 days per year, he is entitled to a leave allowance calculated monthly on the basis of one and a quarter days for each month of work.
After the end of the contract, the employer is obligated to return the worker to the entity with which he was contracted or brought in, within the period specified by the Labor Office, but several conditions must be met for this:
That the worker did not work elsewhere after the end of his contract.
The worker must acknowledge in writing that he does not wish to return to the workplace where he concluded his contract.
If the employer refuses to return the worker, the competent authority will undertake to deport the worker at his expense, and is entitled to recover expenses from the employer.
Learn about the comprehensive guide to the Saudi labor system
In conclusion
the Saudi labor system guarantees you all your rights if you are a worker or employer by imposing strict laws. Therefore, if you are exposed to any violation of your rights, contact the office of lawyer Abdulmajeed Al-Rasheed so that it allows you to deal with the best labor case lawyer to speed up obtaining your rights and know your obligations and duties.
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