Saudi Arabia Labor Law 2015 38 Amendments

Saudi Arabia Labor Law
38 Amendments 2015


Labor Ministry and the Council of Ministers approved 38 amendments updates in new Saudi Arabia Labor Law on March 2015, Which is affected after 6 months of approval, that is from October 2015.
The major updates of these 38 amendments are as follows.

1. Training for Saudi's : A company with 50 or more employees must train 12% Saudis and take them as original employees. Earlier it was 6% and It is stated in Article (43) of Saudi Labor Law.
You can also see this article " Nitaqat Categories".


2. Probationary Period : 90 days probation period can be extended by additional 90 days (But not more than 180 days, Earlier it was only 90 days). If both parties agreed for that period. An employee in one organization can go on probation period only once, Unless the job is separate from the earlier one or when worker left and returned back organization.

3. Fixed  Contracts : For Saudi Nationals, If the employment fixed contract is extended for 4 years (successfully renewed 3 times) then it will become unlimited contract. Earlier it was 3 years (renewed 2 times). It is as per Article (55) in Arabic contract of Saudi Labor Law.

4. Absent From Work : As per Article (80) in Saudi Labor Law, Employee absence from work without valid reason for more than 20 days or 10 consecutive days are increased to 30 days or 15 consecutive days are subject to termination without any salary.

5. Termination Notice : Expanded notice periods for termination of unlimited contracts from 30 days to 60 days for monthly payable employees and 15 days to 30 days for hourly payable employees.
Referring Article (75) in 38 new amendments of Saudi Labor Law.

6. Leaves : Increased in Short term leaves of Article (113) in Saudi Labor Law 2015.
- Marriage Leave is increased from 3 days to 5 days.
- Paternity Leave is increased from 1 day to 3 days.
- Bereavement Leave is increased from 3 days to 5 days.
- Muslim women will get 4 months 10 days leave in case of husband dies or divorce. For Non Muslim women she is entitled for 15 days leave with full pay. As mentioned in Article(160).

7. Maternity Leave : 10 weeks maternity leave for women with full pay starting 4 weeks before delivery, Additional 1 month leave with out pay. As mentioned in Article (151, 152).
Similar article " Vacation & Leaves in Saudi Labor Law".

8. Transfer of Employee : The employer must get written permission of employee before transferring from one place to other. In emergency situations employer can transfer employee to other place not more than 30 days in a year.

9. Employment Certificate : Article (64) New Saudi Arabia Labor Law, The employer must provide a certificate of employment at the end of the contract. Certificate should not include anything that harm the reputation of the employee.

10. Working Hours : An employee should not stay at workplace more than 12 hours per day, No more than 5 consecutive hours work without a break, Break should be attacked least half an hour every day for prayer and lunch. You can also read this article "Working Hours as per Labor Law".

11. Work Injuries : As per Article (137), An employee who met with work injury is entitled to full pay of 2 months (Earlier it was 1 month) amount compensation and thereafter 75% pay till the treatment which can be up to 1 year, where upon he shall classified as disabled and eligible for compensation.

12. Wage Protection System : As in Article (90.2), Currently KSA is implementing Wage Protection System where companies are required to deposit salaries into a bank account for each employee. As of now, WPS is on 8th stage which is applicable to firms with 130 or more employees, It started with largest firms with 3000 or more employees.

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Vacations and Leaves in KSA

Vacations and Leaves Policy 
In Saudi Labor Law

Annual Leave:

As per Saudi Labor Law, Employees are allowed to have Twenty One (21) days paid annual vacation. If your employer's employee contract is less than this, You can request it to increase to 21 days.

If you are with same employer since 5 years you are entitled for 30 days paid vacation. If your employer is not following this, He is violating Saudi Labor Law (Article 109.1). However you can apply for vacation only after completing 2 years of employment with your current sponsor.

Every employee in Saudi Arabia should avail for vacation leave during the years it is due. If employee does not do so, It's employer decision to give him leaves for future years or forfeit the benefit.


Sick Leave:


An employee whose sickness has been proven is allowed to take 4 months sick leave from sponsor (employer). As per this condition,
Employer cannot terminate him from his job or remove him from employee payroll. To apply this condition, Employee has to submit doctors certification stating the number of the days employee need to rest. Without doctor medical sick leave certificate, It is discretion of the employer. It is allowed to employee to add his annual vacation leave with the sick leaves. Implemented Yearly basis quota is as follows.

- First 30 Days, Fully Paid
-Next 60 Days, 3/4 of Total Wages
-Next 30 Days, Unpaid


Death in the Family:

As per Saudi Labor Law (Article 160), In case of death of wife or any other blood relation (Father or Mother or Sister or Brother or Daughter or Son) employees are entitled for 5 days paid leave (As per new amendments in SLL 2015, Earlier it was 3 days). For female employees, She is entitled for 4 months 10 days Iddah leave.

Hajj Leave:

If an employee is performing Hajj, He is allowed for 10 days paid vacation. As one can perform Hajj only once in 5 years with the same employer. Employee is required to complete 2 years with the same employer to avail this benefit.


Marriage Leave:


Employees can get 5 days (Updated October 2015, Earlier it was 3 days) paid leave for marriage, Once in her tenure with employer. Suppose, If you request for two weeks marriage leave. Five days will deduct from marriage leave and remaining from your annual leave.


Maternity Leave:


According to Saudi Labor Law (Article 151 to 156), A female employee is allowed 10 weeks vacation in case of delivery of child. Before delivery date, Four weeks for maternity vacation and 6 weeks vacation after delivery of child, which is fully paid. Probable delivery date shall be decided by the doctor in written statement. Employer cannot terminate her or remove her from payroll of company. She can also add annual leave to the maternity leave if she wants, She can add extra one month leave which is unpaid, After 10 weeks of vacation. Employer should provide her one hour extra rest compare to other staff to feed her  baby.

These vacations may or may not be fully paid. Decision is on number of years she worked with company quota as follows.

- Fully Paid, 3 Years or More
- Half Paid, 1 Year or More
- Unpaid, Less than 1 Year

Male employees can also avail of 1 day paid leave to attend to newborn  child.


Eid-Ul-Fitr & Eid-Ul-Adha:


According to Saudi Labor Law (Article 112), Employees are allowed to have 4 days paid vacation, From 30th of Ramadan for Eid-ul-Fitr. And another 4 days paid vacation, From 9th of Zil Hajj for Eid-ul-Adha.


National Day:


Saudi Arabia National Day is on 23rd of September. All employees are granted one day paid holiday for National Day of Kingdom of Saudi Arabia.


Note for Domestic Workers: Above mentioned leaves are not applied for Visas sponsored by Individual Saudis to work at home, Household Workers and Drivers. Domestic workers are entitled one month paid leave for 2 years and one day off every week.

OVERTIME LABOUR LAW IN SAUDI ARABIA

Overtime Labour Law

1. Employer shall pay the employee or workman overtime hours equal to hourly rate plus 50% of his basic pay.
2. If the establishment or company is operating on the basis of weekly working hours, then additional hours to 48 hours is treated as overtime.

Official holidays and Eid's working hours shall be considered in overtime hours.

Overtime Exception:

1. Overtime hours is an exception to the employees or persons who is high ranking positions of management or who have authority over workers or employees.
2. Guards and janitors, excluding civil security guards.
3. Supplement works or preparatory which must be completed before commencement of work or after commencement of work.

Work that is intermittent by necessity.


Overtime Calculation:



Overtime rate per hour = Hourly wage x 1.5

Hourly Wage = Daily Wage / 8

Daily Wage = Monthly Basic Salary / 30

Annual Basic Salary = Monthly Basic Salary x 12


Example of  Overtime Circulation:

If Monthly Basic Salary is 3000

Daily Wage = 3000 / 30 = 100 SR

Hourly Wage = 100 / 8 = 12.50 SR

Working Hours Under Saudi Labor Law

 WORKING HOURS IN SAUDI LABOR LAW

As per article (98) in Saudi Labor Law. An employee or worker in Saudi Arabia should not work more than 8 hours in a single day, If the employer decided to re adjust the working hours due to any reason then it should not exceed more than 48 hours in a week. Similarly in Ramadan month working hours for Muslims should not axceed 6 hours in a single day or 36 hours in a week.


If you refer article (99) in Saudi Labor Law, It is mentioned that working hours can be raised to 9 hours in a single day for few workmen or employees in certain operations and industries, If the worker is not working continuously. Similarly working hours can be reduced to 7 hours for a few workmen or employees in a certain industries or operations of a harmful nature. The categories of employees or workmen in a few operations or industries shall be determined by Minister's decision.

As mentioned in article (100) of Saudi Labor Law, Employer may seek Minister's approval, If the work is in shift operations and the employer is increasing working hours more than 8 hours in a single day or 48 hours in a week on a  condition that average working hours in 3 weeks should not be less than or more than 8 hours in a single day or 48 hours in a single week.

Saudi Labor Law article (101), Working hours shall be scheduled that no employees should work more than 5 consecutive hours without taking rest or break for prayer and meals. Break or rest period should not less than half an hour during the working hours. Similarly an employee cannot work more than 12 hours in a single day.

Saudi Labor Law article (102), Break or rest period should not be included in working hours, An employee should not be in employer's authority during break time. It is not require to stay workmen or employee at employer 's workplace during break time or rest time.

The employer or sponsor may not comply with provision of Articles (98), (101) and Paragraph 1 of Article (104) of this law:
Read in Article (106) of Saudi Labor Law.

The provision of Article (98)-(101) shall not apply to a few cases:
Read in Saudi Labor Law Article(108).

Nitaqat Categories of Employer or Companies in Saudi Arabia

NITAQAT CATEGORIES OF EMPLOYER OR COMPANIES IN SAUDI ARABIA

Nitaqat category is introduced by ministry of labor in med of 2011 to provide more jobs to Saudi nationals than expatriates. Nitaqat category is categorized in 4 colors, Every company will be in one of four categories which are Red, Yellow, Green and Platinum.

These categories are allotted to the company on the basis of saudi employees on that company.

WHITE CATEGORY:

White category is assigned for those whose employees are less than ten with one saudi employee, it is not covered under nitaqat system.

PLATINUM AND GREEN  CATEGORY:

Platinum or green category is allotted to those companies whose Saudi employees are about 40% (for platinum) and 12% (for green).
Platinum and green color Nitaqat system have benefits like:

1. Easily getting new visa in every 2 months.
2. Can renew Iqama before 3 months of expiry.
3. Easily can change of employees profession.
4. Accept new employees under red or yellow categories.

YELLOW CATEGORY:

The company will fall in yellow zone if their saudi employees are about 7%.

Yellow category have advantages and disadvantages like:

1. Get one new visa for 2 employees sponsorship depart.
2. No transfer from another sponsors.
3. Unable to renew Iqama for those employees who completed 4 years.

Unable to stop those employees who want to move their Sponsorship's to green or platinum category.

RED CATEGORY:

A company having 4% of saudi employees will qualify for red category in nitaqat system. Red  category kafeel or employer does not have any benefits from ministry of labor like:

1. No new visa for expatriates.
2. Unable to accept another company employees.
3. Let the employees go for green and platinum companies.
4. Unable to renew Iqama of employees.
5. Unable to change profession of employees.

Sponsor Transfer Without Kafeel Approval

Sponsor Transfer Without Current  Sponsor Approval

Sponsorship transfer is also known as Naqal Kafala in Saudi Arabia.
Labor Ministry made it possible for employees to transfer their sponsorship legally without  kafeel approval in Saudi Arabia. If the employees met any of the below condition.


If your current company is in Red or Yellow Nitaqat  categories of Sponsorship. Labor Ministry allows you to transfer your Sponsorship to another company without informing your current sponsor. To know you current sponsor Nitaqat color read this article.Nitaqat Categories of Employer

Iqama Sponsorship Transfer, If you are a new employees in Saudi Arabia and your company or sponsor failed to provide Iqama or Muqeem card to you within 3 months, then you can change your sponsorship legally with another company without current kafeel approval.

1. Being an employee of your current sponsor, If you did not receive salary from more than 3 months then you are free to join another company. You can transfer your Sponsorship to another company without your current sponsor approval.
2. If you are new in Saudi Arabia as employee and your kafeel or sponsor is in Red or Yellow category, Then you can transfer your Sponsorship without kafeel approval, However you need to contact Labor officers in this situation.
3. If your Iqama or Muqeem is expired before one month and your sponsor did not renew it, Then also you can transfer to new sponsor with the help of labor office.
4. Most of the companies failed in Wage Protection System of Labor Ministry, Tjose companies employees can transfer their Sponsorship to new companies.

Labor Ministry allows employees with the above conditions for Sponsorship transfer to any individual company. If your current sponsor is under Green Nitaqat category then you need your kafeel approval for Sponsorship transfer.

It is not possible for Sponsorship Transfer if you met any of below condition:

1. If your Passport is expired.
2. If you have a valid final exit visa or exit re-entry visa.
3. If you or your new sponsor have any traffic violations.
4. If Labor Ministry (MOL) does not approve your Sponsorship transfer.
5. If you are under huroob or run away status.
6. If sufficient funds not available for transfer service.