HRM335(Employment Law)
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Chapter-1.pptx
Employment Law
HRM 335
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Chapter 1 Introduction to Employment Law
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What is Employment Law
Employment law is the area of law that governs the employer-employee relationship.
Therefore, if the business has more than one employee, then the business likely uses employment law.
Almost all businesses use some sort of employment law.
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Areas Covered by Employment Law
Worker's compensation
Employment discrimination
Labor relations
Employment of Women, minors
Employment of locals and foreigners
Employee benefits
Work Conditions
Occupational safety and health
Settlement of labour disputes etc.
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Need for Employment Law
An employee may choose to work or not to work for a given employer.
An employer may choose to hire or not to hire a given applicant.
Resolve the imbalance of power between an employer and an employee.
Regulation of discrimination and other areas of employment relationship is necessary.
Human beings do not always act rationally.
Encourage employers’ rational, nonbiased behavior.
Decisions based on race or gender are inefficient.
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Introduction to Saudi Labor Law
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Present Labor Law of Saudi Arabia came into effect by Royal Decree No. M/51 dated 23 / 8 / 1426 • Council of Ministers Resolution No. 219 dated 22 / 8 / 1426 and was published on 25/09/1426
27 September 2005
Came into force from ٢٣ Sha'ban ١٤٢٦ / ٢٧ September ٢٠٠٥
٢٣ Sha'ban ١٤٢٦
Saudi Labor Law
Saudi Labour Law is accompanied by a set of implementing regulations with (254 Articles), plus resolutions on specific issues issued by the
Ministry of Human Resource and Social Development (وزارة الموارد البشرية والتنمية الاجتماعية).
The Labour Law does not apply to:
an employer’s family members who constitute a firm’s only employees
domestic servants
groups such as certain maritime and agricultural workers
foreign nationals entering Saudi Arabia to perform a specific task for two months or less.
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Saudi Labor Court Jurisdiction
According to article 34 of the Law of Procedure before Shari’ah Courts of 2013, labour courts have jurisdiction over the following:
Disputes relating to employment contracts, wages, labour rights, occupational injuries and award of compensation
Disputes relating to the imposition of disciplinary penalties by the employer
Lawsuits filed for enforcement of the penalties prescribed in the Labour Law
Disputes arising from lay-offs
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Some Terminologies used in Saudi Labor Law
Article 1
This law shall be called the Labor Law.
Article 2
The following terms and phrases, whenever mentioned in this Law, shall have the meanings expressed next to them, unless the context requires otherwise.
Ministry: Ministry of Labor.
Minister: Minister of Labor.
Labor Office: The administrative authority assuming jurisdiction over the labor affairs within an area specified by a decision of the Minister.
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Some Terminologies used in Saudi Labor Law
4.Employer: Any natural or corporate person employing one or more workers for a wage.
5. Worker: Any natural person working for an employer and under his management or supervision for a wage, even if he is not under his direct control.
6. Minor: Any person of fifteen and below eighteen years of age
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Some Terminologies used in Saudi Labor Law
7. Work: The effort exerted in all human activities in execution of a (written or unwritten) work contract regardless of their nature or kind, be they industrial, trade, agricultural, technical or otherwise, whether physical or mental.
8. Original Work: For individuals: Their usual business activities. For firms: The activities for which the firm has been established as stated in its articles of incorporation, franchise contract- if a franchise company- or Commercial Register.
9. Temporary Work: Work considered by its nature to be part of the employer’s activities, the completion of which requires a specific period or relates to a specific job and ends with its completion. It shall not exceed ninety days in either case.
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Some Terminologies used in Saudi Labor Law
10. Incidental Work: Work that is not considered by its nature to be part of the usual activities of an employer, and its execution does not require more than ninety days.
11. Seasonal Work: Work that takes place in known periodical seasons.
12. Part-time Work: Work performed by a part-time worker for an employer and for less than half the usual daily working hours at the firm, whether such a worker works on a daily basis or on certain days of the week.
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Some Terminologies used in Saudi Labor Law
13. Continuous Service: Uninterrupted service of a worker for the same employer or his legal successor from the starting date of service. Service shall be deemed continuous in the following cases:
• Official holidays and vacations.
•Interruptions for sitting for examinations in accordance with the provisions of this Law.
• Worker’s unpaid absences from work for intermittent periods not exceeding twenty days per work year.
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Some Terminologies used in Saudi Labor Law
14. Basic Wage: All that is given to the worker for his work by virtue of a written or unwritten work contract regardless of the kind of wage or its method of payment, in addition to periodic increments.
15. Actual Wage: The basic wage plus all other due increments decided for the worker for the effort he exerts at work or for risks he encounters in performing his work, or those decided for the worker for the work under the work contract or work organization regulation. This includes:
• The commission or percentage from sales or profits paid against what the worker markets, produces, collects or realizes from increased or enhanced production.
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Some Terminologies used in Saudi Labor Law
• Allowances the worker is entitled to for exerted effort, or risks he encounters while performing his job.
• Increments that may be granted in accordance with the standard of living or to meet family expenses.
• Grant or reward: What the employer grants to the worker and what is paid to him for honesty or efficiency and the like, if such grant or reward is stipulated in the work contract or the work organization regulation of the firm or if customarily granted to the extent that the workers consider it part of the wage rather than a donation.
• Interim privileges: what the employer commits himself to provide to the worker for his work by stating it in the work contract or the work organization regulation and it’s estimated at a maximum of two months basic wage per annum, unless it is otherwise determined to exceed that in the work contract or the work organization regulation.
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Some Terminologies used in Saudi Labor Law
16. Wage: actual wage.
17. Firm: Any enterprise run by a natural or corporate person who employs one or more workers for a wage of any kind.
18. Month: Thirty days, unless it is otherwise specified in the work contract or the work organization regulation.
19. Regulations: The Implementing Regulations of this Law.
The End
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