HRM335(Employment Law)
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Chapter-2HRM335.pptx
Chapter 2 General Provisions of Saudi Labor Law
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General Provisions of Saudi Labor Law [Article 3-21]
Article 3 Work is the right of every citizen. No one else may exercise such right unless the conditions provided for in this Law are fulfilled. All citizens are equal in the right to work.
Article 4 When implementing the provisions of this Law, the employer and the worker shall adhere to the provisions of Shari'ah.
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Applicability of Law
Article 5 The provisions of this Law shall apply to:
Any contract whereby a person commits himself to work for an employer and under his management or supervision for a wage.
Workers of the government and public organizations and institutions including those who work in pastures or agriculture.
Workers of charitable institutions.
Workers of agricultural and pastoral firms that employ ten or more workers.
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Applicability of Law
Article 5 (Continue… )
Workers of agricultural firms that process their own products.
Workers who operate or repair agricultural machineries on a permanent basis.
Qualification and training contracts with workers other than those working for the employer within the limits of the special provisions provided for in this Law.
Part-time workers with respect to safety, occupational health and work injuries, as well as what is decided by the Minister.
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Applicability of Law
Article 6 Incidental, seasonal and temporary workers shall be subject to the provisions on duties and disciplinary rules, the maximum working hours, daily and weekly rest intervals, overtime work, official holidays, safety rules, occupational health, work injuries and compensation therefore as well as whatever is decided by the Minister.
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Exemptions from Law
Article 7 The following shall be exempted from the implementation of the provisions of this Law:
The employer's family members, namely, the spouse, the ascendants and descendants who constitute the only workers of the firm.
Domestic helpers and the like.
Sea workers working on board of vessels with a load of less than five hundred tons.
Agricultural workers other than the categories stated in Article (5) of this Law.
Non-Saudi workers entering the Kingdom to perform a specific task for a period not exceeding two months.
Players and coaches of sports clubs and federations.
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Contradiction to Law and Language
Article 8 Any condition that contradicts the provisions of this Law shall be deemed null and void. The same applies to any release or settlement of the worker’s rights arising from this Law during the validity of the work contract, unless the same is more beneficial to the worker.
Article 9 Arabic shall be the language used for data, records, files, work contracts and the like as provided for in this Law or in any decision issued in implementation of its provisions as well as the instructions issued by the employer to his workers. If the employer uses a foreign language beside Arabic in any of the mentioned cases, the Arabic text shall prevail.
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Calendar & Change of Employer
Article 10 All periods and schedules provided for in this Law shall be according to Hijra calendar, unless otherwise stated in the work contract or the work organization regulation.
Article 11
If the employer assigns all or part of his original business to a natural or corporate person, the latter shall give his workers all the rights and privileges which the original employer gives to his workers and both of them shall be jointly and severally liable.
In case of multiple employers, all of them shall be jointly and severally responsible for the fulfilment of the obligations arising from this Law and the work contracts.
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Familiarity & Information Requirement for Work Regulation
Article 12
Both the employer and the worker shall be familiar with the provisions of the Labor Law in all its contents so that each of them shall be aware of his position and of his rights and duties.
Any employer who employs ten or more workers shall submit to the Ministry, a work organization regulation including internal work provisions, within a year of the effective date of this Law or from the date of reaching the quota.
Such regulations shall include the work organization rules and all related provisions including the provisions related to privileges, violations and disciplinary penalties, not contradicting the provisions of this Law.
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Period of Approval
Article 13 The Ministry shall approve the work organization regulation and all amendments to it within sixty days from the date of its submission to the Ministry.
If such period elapses without approval or objection, the regulation shall be considered effective as of the end of such period.
The employer shall announce the regulation by displaying it in a prominent location in the firm or by any other means that ensures the workers’ awareness thereof.
Article 14 A model(s) work organization regulation shall be issued pursuant to a decision by the Minister for the guidance of employers.
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Mandatory Information to be Submitted
Article 15 An employer shall, upon commencement of work in the firm, notify the competent labor office in writing of the following data:
Name, type and headquarters of the firm, as well as its mailing address and any information that facilitates contact there with.
Line of business for which it is licensed, providing the number of the Commercial Register or the license, its date and issuing authority, together with a copy thereof.
Number of workers to be employed in the firm.
Name of the firm’s manager in-charge.
Any other data required by the Ministry.
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Designation of In-charge
Article 16
If the employer is unable to run the business in person, he shall designate a representative at the workplace. In case of multiple partners or managers in the firm, one of them, from among those residing at the place of work, shall be nominated to represent the employer and be liable for any violation of the provisions of this Law.
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Designation of In-charge
Article 16 (Continue…)
The employer shall notify the competent labor office in writing of the name of the partner or manager, and, in case of his replacement, he shall notify the labor office of the name of the new partner or manager within seven days at most of the date of the latter’s assuming the job.
In case no manager is appointed to be in charge of the firm, or if the appointed manager does not assume his duties, then the person who actually runs the firm or the employer himself shall be considered the manager in charge of the firm. In all cases, the employer is ultimately liable.
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Maintaining of Records & Transfer of Ownership
Article 17
An employer shall maintain at the workplace records, statements and files the nature and contents of which shall be specified in the regulations. He shall display at a prominent location at the workplace a schedule of working hours, breaks, weekly rest days and time of start and end of each shift, when operating in shifts.
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Maintaining of Records & Transfer of Ownership
Article 18
If the ownership of a firm is transferred to a new owner or a change takes place in its legal form through merger, partition or otherwise, the work contracts shall remain in force in both cases and service shall be deemed continuous. As for workers’ rights accrued for the period prior to the change such as wages or unrealized end- of- service award on the date of transfer of ownership and other rights, the predecessor and the successor shall be jointly and severally liable. However, in the case of transfer of ownership of individual firms, for any reason, the predecessor and the successor may agree to transfer all the previous rights of the worker to the new owner with the written consent of the worker. If the worker disapproves, he may request the termination of his contract and collect his dues from the predecessor.
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Amount Due to Workers
Article 19
Amounts due to the worker or his heirs under this Law shall be deemed first rate privileged debts and the worker and his heirs shall, for the purpose of settling them, be entitled to a privilege over all the employer’s properties.
In the case of bankruptcy of the employer or liquidation of his firm, the aforementioned amounts shall be entered as privileged debts and the worker is paid an expedited amount equivalent to one month wage prior to payment of any other expenses including judicial, bankruptcy or liquidation expenses.
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Infringement of Freedom
Article 20
An employer or a worker may not perform any act that may abuse the provisions of this Law or the decisions or regulations issued for its implementation. Neither of them may undertake any act that infringes upon the freedom of the other or the freedom of other workers or employers to realize any interest or impose a point of view that conflicts with the freedom of work or the jurisdiction of the competent authority in charge of settlement of disputes.
Article 21
The Minister, in implementing the provisions of this Law, shall coordinate with relevant authorities whenever necessary.
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