Transportation allowance in the labor system
Transportation is of utmost importance to the worker. It is not limited to being merely a means of getting him to the workplace, but rather extends beyond that as a matter that increases the financial burden on the worker, affecting his desire to continue working if the agreed-upon wage is not of this appropriate level.
Based on this importance, the Saudi regulator warned of the necessity of providing a suitable means of transportation for the worker to take him to work. In the past, transportation allowance was one of the optional allowances for the employer. If he wanted to grant it to the worker, and if he did not want to, he would not grant it. However, the situation has changed now with the addition of Paragraph (6) of Article (61) of the Labor Law, by Royal Decree No. (M/44) dated 02/08/1446 AH Which made transportation one of the compulsory obligations of the employer towards the worker. What is the text of the article, and what are the controls for providing transportation? This is what we show…
Transportation allowance in the labor system
Transportation allowance in the labor system
Paragraph (6) of Article (61) of the Labor Law stipulates that: “The employer must: …6) provide an appropriate means of transportation for his workers from their place of residence to the place of work. He may replace this with an appropriate cash allowance that he pays them along with the wage“, and the details of the explanation of the article are explained as follows:
1- Compulsory obligation: Providing transportation for the worker has become mandatory for the employer, and it is not possible to agree to exempt him from it, as it violates Article (8) of the Labor Law.
2- Its source is the system: This means that even if the employment contract does not include a clause stipulating that the worker is entitled to a transportation allowance, he will not be entitled to that allowance from the employer, as it is an obligation stemming from the strength of the system.
3- Appropriate means: The organizer did not restrict the employer to providing a specific means of transportation, but rather was satisfied with it being “appropriate“. This means that the extent of the suitability of the means of transportation or not will be due to the discretion of the employer himself, but of course within the limits of preserving the worker’s humanity and dignity as a human being
In all cases, this assessment is subject to the authority of the Labor Court, which, if it is proven that the means of transportation was not suitable, will not take it into account and will therefore award the worker a transportation allowance if he refrains from using the inappropriate means of transportation provided by the employer.
4- From the place of residence to the place of work: The worker’s transportation is limited to the place where he lives or near it as a central gathering point between many workers, and to the place of work only, meaning that the worker cannot ask the employer to transport him to a place other than what was mentioned.
5- The original obligation on the employer is to provide the means of transportation itself, not the cash allowance for him, meaning that the employer cannot be forced to pay the transportation allowance at first; as long as he has provided the appropriate means of transporting the worker, the latter will not have the right to demand a cash allowance.
6- An appropriate cash allowance: On the other hand, if the employer does not want to provide a means of transportation, he has the right to replace it with a cash allowance that he pays to the worker, and this is with the wage at the end of each month. As for the value of this allowance, the organizer did not specify it, and was satisfied with using the word “appropriate“
According to the clear interpretation of this term, the cash allowance must be sufficient to meet the worker’s needs when moving to and from the workplace. In all cases, the assessment of the appropriateness of the cash allowance paid shall be up to the labor court, in the event of a dispute, of course. If it is proven to the judge that the allowance paid by the employer is inappropriate, the worker shall then be awarded the difference the judge deems appropriate.
In conclusion, we would like to point out that the transportation allowance in the labor system has become one of the essential regulatory obligations incumbent upon the employer, and therefore, if it is not implemented, the worker will have the right to leave work based on Article (81) of the labor system, while fully retaining all his rights arising from the employment contract.
Transportation allowance in the labor system
common questions
How much is the transportation allowance in the labor system?
The Labor Law did not specify in its Article No. (61), Paragraph (6), any specific amount for the transportation allowance, but rather left it to the discretion of the employer according to the considerations surrounding the work and the worker, but restricted it to the description “appropriate”, and therefore; The allowance must be appropriate and meet the employer’s transportation needs.
Is transportation allowance mandatory?
Yes, the transportation allowance has become mandatory in accordance with the new amendments to the Labor Law by Royal Decree No. (M/44) dated 02/08/1446 AH, adding paragraph (6) to Article (61).
When do I get a transportation allowance?
Yes, the transportation allowance is due whether it is stipulated in the employment contract or not, as it is a mandatory obligation on the employer under Article 61 of the Labor Law, Paragraph (6).
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