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Employment Contract for Expatriates in Saudi Arabia
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Introduction
All the workers who have been in Saudi Arabia or those who are considering visiting this country in the future for the purpose of employment will find this guide helpful. This guide will help workers with all their inquiries and help them understand the work culture and environment in Saudi Arabia.
Kingdom of Saudi Arabia is divided into thirteen regions, namely Jauf, Riyadh, Baha, Makka, Hail, Eastern, North Frontiers, Madinah, Tabuk, Qassim, Najran, Jazan and Aseer. The capital city of Saudi Arabia is Riyadh, and its current population is 30.8 million (2014 end). The prevalent religion is Islam, and Arabic is the national language of Saudi Arabia. Saudi Riyal (1US$ = SR 3.75) is the currency of this country.
The economy of Saudi Arabia is a free market economy and any worker from any part of the world can visit this country without any restrictions. But only after the Saudi Arabia administration is satisfied that new-comer satisfies the parameter of health; is capable of work; education he/she has acquired, and the training required for him/her.
This guide will help an expatriate worker understand the Labour Law prevalent in this country, and the rules and regulations an expat should abide by to work with harmony with Saudi Administration and the companies in function within the Saudi Arabia border.
The Law formulated by Saudi Arabia is well balanced and regulated. It considers all elements of labor relations between employers and workers and never discriminates between native and non-native workers of Saudi Arabia. Hence, these rules and regulations apply to all Saudi and non-Saudi workers equally.
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Employment contract guide
The workers should abide by these laws and compliance because it will sustain labor relations stability and support the development of this country as a whole. Following guidelines are mentioned for the perusal, the terms employee, and worker has been used interchangeably:
General Directives:
All the workers must have a written contract of their employment with their respective employers
All employees should be punctual on their duty
The employee should avoid absenteeism at work unless consented by the employer and should not escape from workplace except in emergencies.
Employees should follow the instructions of their immediate senior and the entire senior above in conjunction.
Employees must abstain from insulting or assaulting their supervisors.
Employees should follow all the instructions related to the health and safety
Employees should not tamper any tools and equipment related to the firm.
Workers have to make sure that after they arrive in the Kingdom, the employer initiates the procedure for rendering work license and residence permit within 90 days.
Without satisfying the necessary legal procedure, the worker cannot transfer his duty to some other client.
Residence permits and work license and recruitment costs:
If an employer fails to provide residence permit and work license to the employee within 90 days, then the employer will be liable to pay the fine. If any such case takes place, worker’s service shall be deemed in breach of the Law and a proper action will be taken against the employer under the set regulations.
Only medically fit candidates will be allowed according to the instructions issued in this respect from the Kingdom.
The worker will be following the work license given to them for the certain period. After the expiry of the license, the worker must contact their employer for the instant renewal of the license, and if an employer fails to do so, then the concerned must contact the labor department with the concern.
An employer will be held liable for all the expenses like recruitment fees, license renewal fees and other fees like sponsorship and job title fees are concerned.
All employees are required to keep their residence papers and work license papers along with them all time so that they can produce it to any concerned official whenever asked for.
Following conditions must be fulfilled to get a work license for the Kingdom:
Entry of a worker in the Kingdom should be legal
A worker is legally bound to work with a Saudi or non-Saudi employer
A valid passport for at least six months is a must
Worker must be medically and professionally fit for the country
Under following mentioned conditions, a residence permit will be issued to the concerned worker:
Work contract
A work contract will include all the conditions agreed between the worker and the employer. It should also mention, under whom supervision the worker will be discharging his duty.
The worker will be given a work contract to keep it during the complete stay of him in the Kingdom.
The work contract will also include the date of commencement of the job by the employee, his place and period of the work contract with the employer and amount of yearly or monthly or weekly (whichever is applicable) remuneration he will get. Definite work period must be mentioned in work contract, and if there is no mention of any period of the contract, then the work license period of a work contract will be taken into consideration.
There should be clear mention in the contract that whether the worker is a part-time hire, a full-time hire or he is only on probation for a certain period. Any probation period cannot exceed more than 90 days from the date of joining. A probationer cannot go with the same company on probation twice. Any party can terminate the contract during the probation of a worker unless there are some terms and conditions mentioned in the contract. Termination of a contract under probation will result in no payment of compensation of the employee.
Working hours and vacations
As per Ministry of Labor, a worker cannot work more than eight hours a day and more than forty-eight hours a week. For Muslim workers, the work hours will be reduced by two hours during the month of Ramadan.
Overtime working hour’s payment will be equal to an hourly wage plus 50% of his basic wage.
Friday has been decided as a payable weekly rest day for all the workers. Employers will not restrict any employee from performing their religious duties and obligations.
When a worker completes one year at the job, then he will be entitled to get prepaid leave of 21 days that can be increased to 30 based on pro-rata when the employee completes consecutive five years at the same employer.
Paid sick leave will be available for the employee whose illness has been proven. An employer cannot terminate his workers due to sickness. An employee will get sixty days of paid sick leave from the employer and next thirty days of unpaid leave. Other paid leaves like maternity benefits, Greater Bairam holiday and on the 29th day of Ramadan month. Three days will be given as paid leave for marriage, one day for child birth, and one day for Kingdom’s national day.
Minimum fifteen days of paid leave will be given to the female employees whose husband has passed away
Termination of work contract
If both parties agree to terminate the contract, the contract will be considered terminated, provided that both the worker has given written consent and received a signed copy in return.
If the work period term mentioned in the contract expires then, the contract will be deemed terminated without anyone’s consent.
If a worker reaches the age of retirement, which is taken as sixty years for males and fifty-five years for females, then contract stays terminated. However, if the employer and the employee agree to keep the contract going and states that the age has no effect on the contract, and then the contract will be valid until the specified period in the contract.
A female worker who is on maternity leave cannot be warned by the employer of termination of any kind.
Termination of a worker will not take place without a valid reason. She/he who has been terminated without a valid reason can appeal to the competent labor office
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This contract has been designed keeping in mind the welfare of the employee and employer both. The rules and regulation mentioned above will help employees spend peaceful employment life in the Kingdom, provided they go by the laws properly.
References:
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Arabnews.com,. 'Expat Workers Misusing Labor Laws'. N.p., 2015. Web. 21 Nov. 2015.
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Arabnews.com,. 'Expats Have Right To Keep Their Passports'. N.p., 2015. Web. 21 Nov. 2015.
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Dentons.com,. 'Saudi Arabia Labor Law Amendments'. N.p., 2015. Web. 21 Nov. 2015.
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English.alarabiya.net,. N.p., 2015. Web. 21 Nov. 2015.
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Lexology.com,. 'Employment & Labour Law In Saudi Arabia | Lexology'. N.p., 2015. Web. 21 Nov. 2015.
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Saudiarabia.angloinfo.com,. 'Employment Contracts In Saudi Arabia | Saudi Arabia'. N.p., 2015. Web. 21 Nov. 2015.
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Saudiembassy.net,. 'LABOR AND WORKMEN LAW [1969]'. N.p., 2015. Web. 21 Nov. 2015.
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Syed, Imran. 'New Saudi Labor Law From Oct. 18'. Saudi Gazette. N.p., 2015. Web. 21 Nov. 2015.
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