Saudi Labor Law for Expatriates Penalty Table, Law & Rregulations
Considering the diversity of nationalities employed in Saudi Arabia, as well as the unique transformational economy and social reform blueprint that is opening Saudi Arabia to the global market, there was a critical need for a solid foundation of human resources from diverse countries and specialties to launch the ambitious vision. As a result, Saudi labor law regulations for expatriates were instituted.
Saudi labor law for expatriates: Recruitment terms
- Recruitment of an expatriate employee can only take place with the ministry's approval. - A non-Saudi isn’t allowed to engage in any work without obtaining a work permit from the ministry. The conditions for granting the permit are as follows: - The employment contract for non-Saudis shall be written and of a fixed term. If the contract does not specify the duration, the duration of the work permit shall be deemed the duration of the contract. - An employer may not employ a worker in a profession other than the one specified in his work permit. - A worker is prohibited from engaging in a profession other than his current one before taking the legal measures necessary to change his profession. - Unless he has followed the stipulated legal rules and procedures, an employer may not allow his worker to work for others, and a worker may not work for other employers. Similarly, an employer may not employ the workers of other employers. - An employer may not allow a worker to work for his own account, and a worker may not work for his own account. - About the recruitment of non-Saudi workers. - Issuing and renewing residence permits (Iqama) and work permits. - Fines resulting from their delay. - Fees for a change of profession. - Exit and re-entry visas. - The return tickets to the worker’s home country at the end of the relationship between the two parties. - The fees for transferring the services of a worker who wishes to transfer his services to another worker. - Decision for the Ministry of Human Resources and Social Development to manage the contractual relationship between the establishment and the worker (Saudi/Expatriate) 75506 - Establishments shall register their employees with the Wages Protection System, QIWA, and MUDAD. - Expats can freely switch employers. Aiming to increase employee mobility, an amendment to the Saudi labor law for expatriates 2021, which took effect on 14 March, allowed foreign employees to leave their jobs without the consent of the employer upon the expiration of their employment contracts. They can leave their jobs prior to the expiration of the employment contract as long as the employee has been in the country for at least a year and has given 90 days’ notice to the employer. - Decision for the Ministry of Human Resources and Social Development to manage the contractual relationship between the establishment and the worker (Saudi/Expatriate) 75506 - Labor Law, Bureau of Experts at the Council of Ministers, Kingdom of Saudi Arabia. - Decision table of violations and corresponding penalties 92768, Publication date: 13 February 2023 – 22 Rajab 1444, Ministry of Human Resources and Social Development of Saudi Arabia. - Saudi Arabia: Labour Law, 14 December 2022 Rödl & Partner. - What is a Mudad Payroll Management System? 10 Best Facts: How Does It Work? March 22, 2023, HRmatters. - Qiwa.sa/en/qiwa. - Mudad.com.sa. - Saudi Government Compliance, MOHR AR-Blog.