DR. ALI AL-GHAMDI's recent column on Article 77 of the Saudi Labor Law and the mass termination of employees presented a very balanced. The employment law framework in Saudi Arabia is based on the Labour and Workmen Law, enacted by Royal Decree No. The most common areas of dispute under the Labour Law between the employer and employee relate to the scope of wages, working hours, overtime pay, termination and severance pay. RIYADH: Changes to labor laws to protect employee rights will be of the Saudi Arabian National Guard Forces, Social Development Bank.


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Article 77 of the Saudi Labor Law - Saudi Gazette

There has been increased contribution to GDP from non-oil private sector streams. Overtime is normally compensated at time-and-a-half rates.

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The minimum age for employment is Minors may not be made to perform actual work for more than six hours a day for all months except for the month of Ramadhan when the labor law saudi arabia working hours shall not exceed four hours.

The minor shall not stay at the workplace for more than seven hours.

Saudi Shoura Council to vote on change to labor laws | Arab News

Working hours labor law saudi arabia be organized so that a minor may not work for more than four consecutive hours without one or more periods, each not less than half an labor law saudi arabia, for rest, food and prayers, provided that the minor does not remain at the workplace for more than seven hours.

Minors may not be made to work during the weekly rest days, Eids, official holidays or annual vacations, nor shall they be subject to the exceptions provided for in Article of this Law. Prior to employing a minor, the employer shall obtain from him the following documents: An employer shall notify the competent labor office of the employment of each minor within the first week of such employment, and shall keep at the workplace a register for employed minors, showing the name of the minor, his age, full name of his guardian, his place of residence and date of his employment.

The provisions provided for in this Part shall not apply to work undertaken by children and minors in schools for general, vocational or technical education, and in other training institutions, nor shall they apply to work undertaken in firms by persons who are at least fourteen years of age if such work is performed in accordance with the conditions set forth by the Minister and the work constitutes an essential part of the following: The following words and phrases, wherever mentioned in the provisions of this Part, shall have the meanings expressed next to them, unless the context requires otherwise: A floating craft registered in the Kingdom of Saudi Arabia, whose tonnage is not less than five hundred tons.

As a general rule, an employer labor law saudi arabia provide a dismissed employee with a statutory end-of-service reward or indemnity.

Saudi Arabia

The Labour Law, however, does not require the employer to pay the reward or any other indemnity in the following cases of for-cause termination: In cases in which an employer wishes to terminate an employee for cause, but the employee disputes the basis of the termination, the parties may enter into a settlement labor law saudi arabia in order to avoid protracted litigation before the Commission for the Settlement labor law saudi arabia Labour Disputes, which has jurisdiction to adjudicate disputes between employers and employees.

Usually, agreements to settle are entered into between the parties after an employee has already filed a complaint.

If company restructuring or some other business decisions lead to redundancies in personnel, a company may terminate certain redundant employees, provided that it fulfils the statutorily mandated notice period or makes payment in lieu thereof.

In addition, where a company ceases operations in a certain activity, or ceases operations altogether, the amendments to the Labor law saudi arabia Law that went into effect in provide as a matter of statute that the relevant employees working in such operations may be terminated Article 74 LL.


Article 18 provides that all employment contracts labor law saudi arabia by a valid business transfer shall be deemed as continuous, regardless of whether the contract is with the predecessor company or the successor company.

If an employee does not approve of the agreement, then he or she may demand termination of his or her employment contract and delivery of all of his or her entitlements from the predecessor Article 18 LL. Notwithstanding Article 18 of the Labour Law, Article 11, which provided that both parties are jointly responsible to provide employees with all rights and privileges granted by the original employer where the employer sells all or part of its business to another, was amended as part of labor law saudi arabia amendments to remove such joint responsibility and place sole responsibility on the successor.

Thus, it would appear at present that there is a conflict between Articles 11 and 18 of the Labour Law.

Saudi Shoura Council to vote on change to labor laws

XIV OUTLOOK Saudi Arabia is currently experiencing growing pains as state spending is curtailed as a result of depressed oil prices, and this is reflected in the labour market and the pressure on companies to comply with Saudisation policies by focusing on the hiring, training and promotion of Saudi employees.

There is hope that a renaissance of diversification will bring a renewed sense of optimism to the economy, but, for the time being, companies doing business in Saudi Arabia should anticipate a continuation of the intensified Saudisation campaign and anti-expatriate sentiment experienced in Long-standing policies of restricting expatriate employment and conditioning the issuance of employment visas to foreign workers on satisfactory levels of employment of Saudi nationals will remain and Saudi policy is likely to require ever-increasing percentages of Saudi nationals among workforces, even in fields where there is a shortage of skills among Saudi nationals, as well as labor law saudi arabia protections for Saudi employees generally.

Prior to joining Dentons, John worked on labor law saudi arabia arbitration and investment disputes as a legal fellow in the US Department of State. He also clerked at various international labor law saudi arabia firms and courts, including the Court of Justice of the Andean Community international trade law.

Labor law saudi arabia is the author, editor or translator of various books and articles dealing with international and comparative law, including A Legal Guide to Doing Business in Saudi Arabia Thomson Reuters, co-author. Jonathan Burns Dentons in association with The Law Firm of Wael A Alissa Jonathan is labor law saudi arabia US-trained and qualified associate at Dentons, and has been a full-time resident in Riyadh sincewith additional training experience beginning from As part of the Dentons corporate and commercial team, Jonathan advises foreign, Saudi and GCC global market leaders and key players in the region on the full range of investing and doing business in Saudi Arabia and the GCC region.

Jonathan is author of the book Introduction to Islamic Law: Fourthly, the Human Resources Development Fund HRDF reimburses to employers the wages of Saudi nationals to the extent of 50 percent for a period of the first two years, thereby encouraging companies to hire Saudis.

Saudi Arabia - The Employment Law Review - Edition 9 - The Law Reviews

Moreover, the work permit fee for expatriates that is poised to increase by labor law saudi arabia proportions year after year is another reason for employers not to hire expatriates. Fifthly, the enterprising nature of capitalism dictates that employers should have the ability to hire and fire employees, of course, without discrimination on any grounds.

In the absence of such powers, it becomes difficult for businesses to prosper and without the commercial incentive or interest labor law saudi arabia can only be achieved by optimal deployment of resources including human resources, people will not invest in the market and economies will not grow.

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