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A bird's eye view of Riyadh, Saudi Arabia.

PHOTO BY ARCHIVE


Saudi Arabia considers big changes to labour law

 

RIYADH – Saudi Arabia is reportedly considering major changes in its labour laws to benefit employees, according to media reports.

Under the proposed changes, recruitment of foreigners by unlicensed individuals will be considered a criminal offence that is subject to a fine of up to 500,000 riyals (Dh489,4500).

Saudi Gazette quoted sources as saying that brokerage in the employment of Saudis by unlicensed individuals may also be criminalized under the proposed changes, with a fine of 200,000 riyals (approximately Dh195,700).

According to Saudi Gazette, the amendments in the labour law will be introduced by the Ministry of Human Resources and Social Development soon.

Proposed changes to Saudi Labour Law:

– Recruitment of foreigners by unlicensed individuals to be criminalized, and subject to a fine of up to 500,000 riyals (Dh489,4500)

– Recruitment of Saudis by unlicensed individuals to be criminalized, with a fine of 200,000 riyals (approximately Dh195,700)

– 14-week maternity leave with pay for women instead of 10-week leave

– Ban on recruitment of Saudis or foreigners unless licensed to conduct such activity

– Ministry of Human Resources and Social Development to inspect private companies for labour violations, and impose fines

– Employer to bear cost of recruiting expat workers

– Employer to pay for cost of expat worker’’ residency permit, work permit and renewal of permits, but all other government fees

– Employer to pay for return ticket of expat worker to his home country at end of contract

– Expat employee to pay exit and re-entry visa fee

– Employer is prohibited from discrimination or preferential treatment of workers

– Employer is prohibited from withholding worker’s salary in full or in part without court order

– Employer must treat workers with decency and respect

– Employer must provide suitable housing and means of transport to workers

– Employee and employer may terminate an indefinite contract without need for 60-day notice period

– Employee who was terminated for unlawful reason must be compensated with one-month’s salary for each year of his or her service during an unlimited contract, in addition to the remaining period of the contract if it is for a fixed period.

ICA/Expat Media


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