KSA_Labor_Law___English

Document Sample
KSA_Labor_Law___English Powered By Docstoc
					                                                                        LABOR AND WORKMEN LAW
                                                                      OF THE KINGDOM OF SAUDI ARABIA




                                                                                   Riyadh, Saudi Arabia
                                                                                     07 November 2004




To my fellow OFWs in Saudi Arabia:


I would like to share with you this updated copy of the Saudi Labor and Workmen Law which I
copied and compiled from publications of the Council of Ministers, the Ministry of Labor and the
Internet. If you find unrelated words as well as typos in some of the sentences that affect the
meaning, I suggest you revert to the original book for reference. There may be unclear English
translations of some articles, however let us not forget that the Arabic text shall prevail at all times.


Also, please note that there are explanations to certain articles which were not clearly defined in the
original book. Superseded articles are likewise clarified through margin annotations.


This is for your reference and guide.


Very truly yours,


ALEXANDER E. ASUNCION

Subaybayan tuwing araw ng Linggo sa Arab News PINOY XTRA
“ANG BATAS SA PAGGAWA AT IBA PANG ALITUNTUNIN”




                                                  You   don’t have to die for your country to
                                                  become a hero as long as you offer your heart
                                                  to the needy, weak and oppressed and be a
                                                  model Filipino – KaBayani ALEX ASUNCION




                                                                                                            1
                                                             LABOR AND WORKMEN LAW
                                                            OF THE KINGDOM OF SAUDI ARABIA




                                 Kingdom of Saudi Arabia
                                  Bureau of Presidency
                                 The Council of Ministers

                        THE SAUDI LABOR AND WORKMEN LAW




                                 APPROVAL SUMMARY


                                 Kingdom of Saudi Arabia
                                   Council of Ministers



This Law has been approved by the Council of Ministers on his Decision No. 745 Dated
23/24/8/1389H and issued under Royal Decree No. M/21 dated 6/9/1389 H and published on UM-
ALQURA Newspaper No. 2299 dated 19/9/1389H.




                                                                                        2
                                                                   LABOR AND WORKMEN LAW
                                                                 OF THE KINGDOM OF SAUDI ARABIA




                                     LETTER OF APPROVAL

                                           No. M/21
                                        Dated 6/9/1389H

With the help of God Almighty;

We, Faysal Ibn Abd al-Aziz Al Saud
King of Saudi Arabia

After reviewing Articles (19) And (20) of the Council of Ministers No.(38) dated 22 Shawal 1377H
and after reviewing the Council of Ministers decision no. (745) dated 23/24/8/138H:

We decree as follows

First: We sanction the Labor and Workmen Law in the form attached hereto.

Second: The Vice President of the Council of Ministers and the Minister of Labor and Social Affairs
shall put this decree of ours into effect.

Royal Signature
Faysal Ibn Abdul-Aziz Al Saud




                                                                                                 3
                                                                 LABOR AND WORKMEN LAW
                                                                OF THE KINGDOM OF SAUDI ARABIA




                                        DECISION NO. 745



Kingdom of Saudi Arabia
Bureau of the Presidency of the Council of Ministers

Decision No. 745 dated 23-24/8/1389H

The Council of Ministers

After reviewing letter No. 16508 dated 22/8/1389H, of High Authority, the draft Labor and Workmen
Law attached hereto, and the comments made by the High Authority on the Draft, and After
studying the above;

Decides as follows:

The Draft Labor and Workmen Law hereby approved in the form attached hereto.
A Draft Royal Decree to that effect, copy attached, has been prepared


Faysal Ibn Abd al-Aziz Al Saud
President of the Council of Ministers




                                                                                               4
                                                                    LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA




                            TRANSMITTAL TO MINISTRY OF LABOR



Kingdom of Saudi Arabia                                                       No. 17682
Bureau of the Presidency of the Council of Ministers                          Dated 7/9/1389H
Of The Council of Ministers

His Highness
The Minister of Labor and Social Affairs

Please find enclosed the following:

1. Copy of Council of Ministers Decision No. 745 dated 23-24/8/1389H concerning Labor and
   Workmen Law.

2. Copy of the Royal Decree No. M/21 dated 6/9/1389H sanctioning the above-mentioned Law.

3. Copy of that Law in 211 pages as provided by the Bureau of Presidency of the Council of
   Ministers.

4. Copy of Council of Minister decision No. 746 dated 23-24/8/1389H in concern of Social
   Insurance Law.

5. Copy of the Royal Decree No. M/22 dated 6/9/1389H that sanctioned the Social Insurance.

6. Copy of that law as provide by the Bureau of Presidency of the Council of Ministers in sixty-five
   articles.

Please put them into effect and arrange for prompt typing and distribution of both regulations to the
related bodies and to provide immediately the Ministry of Information with two copies in purpose to
be published on local Newspapers.

Please put them into effect and arrange for prompt typing and distribution of both regulations to the
related bodies and to provide immediately the Ministry of Information with two copies in purpose to
be published on local Newspapers.

Salih Al-Abbad
President
Bureau of Presidency of the Council of Ministers

Copy + copy of the Two Decrees to Minister of Finance and National Economics
Copy + copy of the Two Decrees to Ministry of Interior
Copy + copy of the Two Decrees to Ministry of Information
Copy + copy of the Two Decrees to Ministry of Commerce and Industry
Copy + copy of the Two Decrees to General Auditing Bureau
Copy + copy of the Two Decrees to General Personnel Bureau
Copy + copy of the Two Decrees to High Committee
Copy + copy of the Two Decrees to Political Division
Copy + copy of the Two Decrees to Secretary General of The Council of Ministers




                                                                                                   5
                                                                     LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA


CHAPTER 1 – GENERAL PROVISION

Article 1

This Law shall be called the Labor Law.

Article 2

The provisions of this Law shall apply to:

a. Any contract of work under which any person undertakes to work for the account of an
   employer and under his control and directions in consideration of a wage.

b. Apprenticeship contracts.

c.    Workers of the governments, local authorities, Charitable establishments and public
      organizations

Article 3

Provisions of this Law shall not apply to:

a. Workers in family enterprises that does not include, but only members of the employer’s family.

b. Persons who work in pastures or agriculture, except:

     1.     Persons working in agricultural establishment which process their own products.

     2.     Persons who permanently engaged in operation or repair of mechanical equipment.
            Required for agriculture.

     3.     House Servants and others workers regarded as such.

Margin Annotation:

Provision of this law shall apply to B mentioned above as per the decisions of the Council of
Ministers No. 209 dated 6/2/1398H

Article 4

In the absence of special provision to the contrary, the provisions of chapter 8 and articles
164,165,166 shall not apply to the following:

a. Workmen who work in non–mechanical establishments, which employ normally less than 5
   workers, where the work does not cause any of the occupational disease.

b. Seamen or Skippers employed on ships of less 500 ton, who are subject to the provisions of
   part 2 of the commercial regulations (maritime trade) sanctioned by Royal Order No. 32 dated
   15 Muharram 1350H.

Article 5

The Minister of Labor may consider all or any of the following establishments to be governed by the
provisions and chapters mentioned in Article 4 of this Law:


                                                                                                  6
                                                                    LABOR AND WORKMEN LAW
                                                                  OF THE KINGDOM OF SAUDI ARABIA



a. Any establishment employing juveniles.

b. Any establishment employing women.

Article 6

It is illegal to violate the provisions of this Law or to prejudice any other rights acquired by the
workman by virtue of any other regulations, or concessions agreements, labor contract, or any
other agreement, or by virtue of any arbitration award or Royal Order or in accordance with what
has been habitually granted by the employer to his workmen in a given area or areas. Whereby the
workman waives any right established in his favor by virtue of the provisions shall be null and void
even if such stipulation was made to the effective date hereof.

Article 7

Following terms and expressions shall have the meaning set below:

1. “Adult”: Person who has completed 18 years.

2. “Adolescent”: Person who is more than 15 years and less than 18 years.

3. “Juvenile”: Person who is under 15 years.

4. “Commission”: Commission is formed according to the provisions of Chapter eleven of this
   law for settlement of work disputes, chairman of the commission is the official who heads it.

5. “Continuous Service”: Uninterrupted service with the same employer or his legal successor
   from the commencement of service , service shall be considered as continuous in the following
   cases:

    a.      Regular vacations or leaves authorized by employer.

    b.      Where, the worker absents himself from work for legal excuse for periods totaling to 30
            days a year.

    c.      Where, the worker stops working for reasons imputable to or emanating from the employer
            with which the worker had nothing to do.

6. “Wage”: All that is given to the worker in consideration of his work under contract of work,
   whether written or unwritten regardless the nature of the wage whether it is in cash or in kind,
   whether it is paid monthly, weekly, daily or in piecework basis, on the basis of number of
   worked hours or the amount of production, regardless such a payment consist of commissions
   or tips paid in accepted practice and where there are rules controlling accurate calculations.

    In general, wages shall include all increments and allowances of all kind including the high cost
    of living allowance and the family allowance.

7. A “Workman”: any person working for the account of employer and under his management
   and supervision if it is not a direct suppression in consideration of a wage.

8. An “Employer”: Any natural or juristic person employing a workman or more in consideration
   of a wage.



                                                                                                   7
                                                                       LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA


9. “An Apprentice” Any person who joins the service as an employer in purpose to learn a trade
   or craft.

Article 8

In case that employer entrusts to a natural or juristic person one of his principal works or a part of it
the latter shall give the worker all the rights and privileges granted by the employer to his own
workers and both shall be responsible for that.

Article 9

The employer and the worker shall be known of the contents of this Law in purpose to be aware of
their rights and obligations. And in order to regulate the work a set of these rules shall be displayed
at a conspicuous place in every establishment employing more than twenty workers and it shall
show the following:

a. Classification of workers in accordance to their positional categories.

b. Working hours, official holidays, off days (rest), pay days.

c. Work shifts.

d. Regulations and rules of attendance, absence tardiness and access control for checking – in
   and checking out, inspection.

e. Vacations and eligibility.

f.   Any other details necessitated by the nature of the work.

A set of disciplinary rules shall also be displayed showing acts, offensive, acts of insubordination
and workers obligations, and the corresponding cash penalties or disciplinary actions, in
accordance with the disciplinary rules issued by Minister of Labor. The said rules and any
amendments shall not become effective except after have been approved by the Ministry of Labor.

Article 10

The employer shall keep at place of work records showing full name of the worker, nationality,
occupation, date of birth, place of residence, family status, date of hire, wages & wage supplements
Changes in status , penalties imposed on him, and relative investigation reports regular work hours
and overtime, vacations and benefits in cash or in kind, date of termination and reasons,
compensations received, and any other necessary information relate to the implementations of this
Law, and in particular, the information relate to employment of juveniles and women and
occupational injuries and diseases.

Article 11

In case of several partners or managers in any establishment, a resident manager shall be
appointed to be responsible for any violation of the rules of this Law. Labor office shall be informed
of the name of the said appointed manager.

Article 12

In the event complaint against an officials who are charged with the enforcement of this Law in
connection with the discharge of their official duties, investigation shall be made by a commission of


                                                                                                       8
                                                                      LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA


three, one of whom shall be selected by the Minister of Labor, while the second shall be from the
personnel bureau and the third shall be an administrative investigator designated by the Grievance
board or by any juridical authority replacing it. If the investigation reveals that the complaint was
false or vexatious, the complainant shall be penalized with a fine of not less than five hundred riyals
and not more than twenty thousand riyals, and if it is found to be valid the commission shall raise a
report to the Minister of Labor so that he may issue his instructions for the necessary action.

Article 13

Complaints shall not be heard in respect of violations of the rules of this law after the lapse of
twelve months from date of occurrence of such violations and case or claim relating to the rights
shall be heard after the lapse of twelve month from the date of the termination of the work contract.
Claims or rights that relate to previous regulations shall not be heard after the lapse of one full year
from the effective date of this Law.

Article 14

Actions arising under the rules of this law shall be heard expeditiously, the losing party shall be
ordered to pay the other party all or part of the expenses incurred by the latter.

Article 15

The amounts entitled to the worker or dependants shall be considered first-class privileges debts,
and for recovery, the worker or his heirs shall have a priority right over the employer’s property. In
case of bankruptcy or liquidation of the employer’s establishment, such amounts shall be recorded
as privilege debts and the worker shall be paid immediately a portion equivalent to one month’s
salary before payment of any other costs, including judicial, bankruptcy or liquidation expenses.

Article 16

Arabic Language to be used in all decisions, records, registers, files, statements and others
provided in this law, or in any decision or order in application of it, as well as instructions or
circulars issued by the employer to his workers. In case employer along with the Arabic language
uses foreign language, the Arabic text shall prevail at all times.

Article 17

Times limits and periods provided in this rules shall be computed on the Hegira Calendar, unless
another calendar is agreed upon.

Article 18

The employer shall submit the following information to labor office before commencing his work:

a. Name and location of the establishment and address.

b. Nature of work to be carried out.

c. Type of energy to be used.

d. Number of workers.

e. Name of responsible manager.



                                                                                                      9
                                                                     LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA



f.   Any other necessary information.

g. Information that relates to existing establishments at the time this law is put into effect shall be
   submitted within three months from that time.

Article 19

Labor office shall be notified within seven days from date of replacement of the responsible
manager and the assumption of the new manager, and in case no one has been appointed, the
person who actually performs the manager’s duties shall be regarded as a responsible manager.

Article 20

A month shall be reckoned as thirty days unless otherwise provided.

Article 21

Physicians selected by consultation between the Minister of Labor and minister of health shall issue
necessary certificates.

Article 22

It is not allowed for any worker or employer to abuse any provision, decision and rules of this law. It
is illegal, too, to bring pressure to bear on the freedom of the other with the object of realizing any
interest or supporting points of view which they adopt which is inconsistent with the freedom of
work and the jurisdiction of the authorities concerned with settlement of disputes. Penalties
provided in this law shall be applied to any offender.

CHAPTER 2 – LABOR INSPECTION

Article 23

Competent inspector designated by decision of Minister of Labor shall undertake labor inspection
and they shall have the jurisdictions and functions provided in this law.

Article 24

Functions of labor inspection:

a. Monitoring of proper execution of the rules of the labor law, and in particular those relate to
   work conditions, protection safety procedures for workers, wages and the employment of
   juvenile.

b. Make available to workers information and technical guidance that enable them to adopt the
   best means towards enforcement of the rules.

c. Notifying concerned authorities of the deficiency that provision fails to remedy and suggesting
   alternatives.

d. Recording of violations of the provisions of the labor regulations.

Article 25




                                                                                                    10
                                                                      LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA


Labor Inspector shall take the oath before the Minister of Labor to perform their duties honestly and
faithfully and not to disclose industrial secrets that the may know by reason of their offices even
when they cease connecting with such offices. Ministry of Labor shall provide the inspectors with ID
card.

Article 26

Employers shall extend to the inspectors required facilities that facilitate performance of their duties
and shall present to them all required information and to respond when requested to appear before
of inspectors or to send a delegate to appear on their behalf if required.

Article 27

Inspectors shall have the right to:

a. To access to any establishment that is subject to the rules of this law ant time during day or
   night and without prior notice conditioned that such access shall be made during working hours
   .

b. Perform any necessary investigation to ensure proper enforcement of the law and they may in
   particular:

    1. Investigate the employer or the worker separately or in presence of witnesses about
       matters relating to the enforcement of the rules.

    2. Examine the records and documents and obtain copies or extracts.

    3. Take samples of used materials subject to inspection when believed such material may
       have a harmful effect on the workers health or safety.

    4. To ensure that the required notices are posted.

Article 28

Appropriate rules shall be prepared by Ministry of Labor in regard of inspection operation provided
in preceding article and shall be approved by decision of the Council of Ministers.

Article 29

The inspector shall notify the employer of his presence unless he sees the inspection matter calls
for a different course of action.

Article 30

The inspector has the right to instruct employers to make modifications in the operating rules to the
plant equipment used in their establishments within the period he prescribes that is to insure proper
applications of rules that relate to worker’s health and safety. And he has the right to require the
immediate adoption of the necessary measures if an imminent danger is threading workers health.

Article 31

Complaints received by inspectors shall be treated as strict confidential and shall not disclose to
employer the existence of such complaints.



                                                                                                     11
                                                                     LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA


Article 32

If inspector finds contravention of law, he shall prepare a report in duplicate setting forth the event
and raise it to the director of labor office for necessary action.

Article 33

Directors and inspector may call upon police authorities to provide necessary assistance when
required. A competent physician shall accompany the inspector when the duty of the later relates
the heath aspects.

Article 34

Head of inspectors shall prepare a monthly report on the inspection activities, number and nature of
violations and he shall also prepare an annual report showing results of inspection and offering his
suggestions. Copies of both reports are to be sent to Ministry of Labor.

Article 35

The Deputy Minister of Labor shall prepare an annual report on inspection in the kingdom covering
all matters relate to the executions of the rules of the labor law and the following in particular:

1. Statement covering inspection rules.

2. Statement of inspection officials.

3. Statistical data on establishment subject to inspection and number of workers.

4. Statistical data on number of visits executed by inspectors.

5. Statistical data on number of committed violations and penalties to which offenders were
   sentenced.

6. Statistical data on labor injuries.

7. Statistical data on occupational diseases.

Article 36

The ministry shall prepare warning notices, reports, inspection records notices and rules for
safekeeping and forms to be distributed in various areas.

Article 37

In addition to the general requirements for employment of employees, the labor inspection must
satisfy the following requirements:

a. They shall be impartial.
b. Not to have any direct or indirect interest in the establishment inspected by them.
c. They shall pass a special professional examination following a training period of not less than
   three months.

Article 38



                                                                                                    12
                                                                     LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA


The ministry organizes the special training courses of the inspectors and controllers, special
attention shall be given to the following:

a. Principals of organizing inspection and communications with employers and workers.

b. Principal of auditing and accounting.

c. Principal of counseling employers in regard of rules application and benefits of application.

d. Fundamental Principals in industrial technology and means of protection against labor injuries
   and occupational diseases.

e. Fundamental Principals in productivity and its relation to securing favorable conditions for the
   performance of work.

CHAPTER 3 – COMBATTING UNEMPLOYMENT

FIRST: EMPLOYMENT OFFICES

Article 39

The ministry shall set up employment offices in locations suitable for employers and workers as
well. These offices shall be under the supervision of the ministry that shall offer free service in
purpose to assist workers in finding appropriate jobs and employer to find suitable workers.

Such offices shall collect and analyze necessary information on the position and development of
Labor market and make it available to the concerned bodies who deal in economic and social
affairs. The employment offices shall carry following duties:

a. To record the names of job applicants, show their vocational qualifications, practical
   experiences and desires.

b. To obtain information on vacancies from employers.

c. To offer advice and assistance to the job applicants in regard of the vocational training required
   for the obtainment a job.

d. To facilitate the transfer of workers from position to another or from one area to another.

e. Others which may be determined by the Deputy Minister of Labor.

Article 40

It is not allowed for any person to act as an employment agent or as supplier of workers unless
permitted by the Deputy Minister of Labor, provided that he possess an annual license which shall
be renewable at the discretion of the competent authority that controls the said activity. The license
shall be granted only when there is an employment belonging to an approved organization capable
to act as an intermediary in supplying the required workers.

Article 41

It is not allowed for employment agents or the worker suppliers to ask or accept from workers any
kind of rewards in consideration of granting them contracts of work, or to collect from them any
related expenses unless such expenses are decided and approved by the competent authorities


                                                                                                   13
                                                                     LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA


Workers supplied by an agent or by workers supplier shall be regarded as employed upon the
engagement by employer and shall have the rights and privileges of the original workers of the
establishment. The relationship between the supplier and the worker shall end and shall become a
direct one with the employer.

Article 42

The employer shall inform labor office via a registered mail of the current vacancies and the newly
created jobs, and shall give details of the job in regard of conditions, wage, and nature of work
requirements for employment within 10 days from the date on which the post has become vacant or
created.

Article 43

The employer shall submit to the appropriate labor office every year during the month of Du-al Hijah
the following information:

1. Statement showing numbers and names of his workers, their positions, wages, nationalities
   and number of work permits.

2. Statement of vacant post or the newly created, rate of pay, jobs filled and reasons for not filling
   others.

3. Report on nature of work, conditions and circumstances, expected increase or decrease in
   number of vacancies.

Article 44

Without prejudice to the conditions laid down in this concession and other agreements and orders
regarding training, education and scholarships, every employer employing more than one hundred
workers, shall train in technical jobs a number of his Saudi national not less than 5% of his total
workers as per the training program set my Ministry of Labor.

The Minister of Labor shall decide the rules and conditions to be observed during the training and
shall determine the maximum and minimum periods and also the theoretical and practical methods,
methods of testing and granting of certificates.

Article 45

Saudi workers shall not be less than 75% of the total number of the company/ establishment
workers and their wages shall not be less than 5% of the total wages of workers.
The ministry may reduce this ratio in absence of technical skills or educational qualifications.

Article 46

The Minister of Labor shall require employers in certain industries or in certain areas not to appoint
worker except through employment offices according to terms and conditions determined by him.

Article 47

Rules and procedures governing the conduct of business at the employment offices shall be
determined by decision of Minister of Labor prescribing the forms of records, notices and other
documents handled by such offices and also job classification scheduled according to international
job classification which serve as basis for organization of employment operation.


                                                                                                   14
                                                                     LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA



SECOND: EMPLOYMENT OF FOREIGNERS

Article 48

Work is a right of Saudi national, it may not be exercised by others except after fulfillment of the
conditions provided for in this chapter. The Saudi workers are equal in their rights to work in all
areas of the country without discrimination.

Article 49

No foreigner shall be brought into the country to work nor permitted to work with company or private
establishment except after the approval of the Minister of Labor and after securing a work permit
which shall not be granted unless following conditions are fulfilled:

1. Worker shall have entered the country in a legal manner and shall have satisfied the condition
   of the residence rules and conditions.

2. To possess vocational skills and educational qualifications of which the country is in need,
   provided that the nationals possessing such qualifications are either lacking or insufficient.

3. That he shall be under contract with a Saudi employer or non Saudi authorized under the
   regulations for the investment of foreign Capitals, or under contract with and guaranteed by a
   concession company.

    The term ”work” shall mean any industrial, commercial, agricultural financial or other work and
    also any service including domestic service.

Article 50

As per rules, conditions and periods determined by Minister of Labor, the employer shall
vocationally train his Saudi workers to replace foreign workers, that by improving their technical
standards. Employer shall keep register on which he shall record the names of the Saudi workers
who have replaced non-Saudis.

THIRD: VOCATIONAL REHABILITATION OF DISABLED

Article 51

A disabled person is that person whose capacity to perform his work has diminished as a result of
physical or mental infirmity.

Article 52

“Vocational rehabilitation” shall mean the services provided to a disabled in purpose to enable his
to regain his capacity and perform his normal work or any other work that suits his condition.

Article 53

Minister of Labor in agreement with other ministries and concerned establishments shall set
instructions provided for vocational institutes. Disabled persons shall be given certificates approved
by Minister of Labor confirming their rehabilitation.

Article 54


                                                                                                   15
                                                                      LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA



Any employer employing more than 50 workers and where the nature of his business enables him
to employ disabled persons shall employ some of them to the extent of 2% of total of his worker.
Employer shall inform the labor office of jobs occupied by disabled workers who have been
vocationally rehabilitated.

Article 55

If the injury of the worker result in disablement that doesn’t prevent him performing a job rather than
his previous job, the employer shall assign to him a suitable work at the salary fixed for that job
within 1% of the total workforce, and without prejudice his reserved right for the injury
compensation.

FORTH: CONTRACT OF APPRENTICESHIP

Article 56

Contract of apprenticeship shall mean the contract upon which the employer agrees to employ a
young worker in purpose to teach him a certain trade of craft within a specific period during which
the worker shall be under the supervision of the employer.

Article 57

The employer who employs apprentices shall be at least 21 year old, of good reputation and he or
who is in charge of training shall be in possess of adequate qualifications and experiences required
for the trade or craft subject to apprenticing. And the establishment shall satisfy technical conditions
that include trainers and other facilities required for teaching the trade or the craft.

Article 58

Contract of apprenticeship shall be made in writing and period and stages shall be determined and
wages as well. Wages of upper stages shall not be less than the lower ones that given to similar
work and determination shall not be on piecework or product basis.

Article 59

Contract of apprenticeship shall be written in three copies at least, one for each part: the employer,
the worker and the third copy shall be submitted to the appropriate labor office within a week’s time
from date of commencement of the contract. The registration date at labor office shall be
considered the official date for the commencement of the contract. The apprentice or his legal
testamentary guardian where he is under 16 years of age shall sign the contract. Such contract
shall be exempted from registration fees or stamp duty.

Article 60

The Minister of Labor shall determine the jobs of apprentice, periods for each trade or craft and
also the theoretical and practical program and conditions of examination. Head of Council of
Ministers shall approve the certificates given at completion of the period.

Article 61

The Minister of Labor shall have the right in all cases to appoint an expert or more in the trade or
the craft to be organized, and he shall avail himself of his/their reports.



                                                                                                     16
                                                                      LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA


Article 62

The apprentice shall submit to a medical examination before commencing his program in purpose
to determine his ability to perform the trade he wishes to be trained on, and if the trade or craft
required special medical fitness, the report shall state whether such physical or psychological
conditions are fulfilled.

Article 63

The employer shall guide and monitor the conduct of the apprentice as a godfather and advice him
to avoid serious errors, and shall not ask the apprentice to accomplish operations not relating to his
practicing the trade or the craft.

Article 64

The employer shall instruct gradually in principals of the trade or craft stipulated in the contract and
shall at the end of the contract deliver to him a document acknowledging completion of the
apprenticeship.

Article 65

Apprentice shall be guided through the instruction of his master in full respect and politeness and to
cooperate and assist his master within the limits of his capacity and ability.

Article 66

The employer may terminate the contract when he feels that the apprentice does not have the
desire or ability to complete usefully the apprenticeship. The apprentice shall have the same right in
terminating the contract, provided that the part who wishes to terminate the contract shall notify the
other part at least one week prior to the date of cessation of work.

Article 67

In the establishments, industries and trades to be specified by the decision of the Minister of Labor,
the minister may oblige them to accept:

a. A number and specified portion of apprentices according to conditions and periods determined
   in Articles 60 and 61.

b. A number and specified portion of students or graduates of the industrial and vocational
   institutes to be trained and to obtain practical experiences according to conditions, periods, and
   wages determined in an agreement between the ministry and the establishment.

Article 68

Fiscal charge called “Vocational Training Tax” may be by decision of Council of Ministers imposed
on industrial and vocational establishment whose vocational field and number of workers
determined by recommendation of the Minister of Labor. The proceeds of the proposed vocational
tax shall be used in financing the training institutes and to establish new ones when necessary.

Article 69

The employer shall or shall not keep the apprentice in his service at the end of the apprenticeship
period, the apprentice shall have the right to stay or not unless provided contrary in the contract.


                                                                                                     17
                                                                    LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA



CHAPTER 4 – WORK CONTRACT

Article 70

The work contract is a contract signed between the employer and the worker where the worker
agrees to work under the direction of the employer in consideration of a wage. The contract
contains terms and conditions of work agreed upon for specified or unspecified period or for
accomplishment of a certain specified work.

Article 71

The employer shall not be obliged to re-employ the worker under probation period for more than
three months in respect of those who are employed at a monthly rate or for not more than one
month for others. The same employer shall not appoint the same worker under probation for more
than once and to be stated clearly in the contract that the work is under probationary period and
period shall be clearly determined.

Article 72

The work contract of specified period shall terminate upon the expiry of its period, if both parties
shall continue to enforce it, then it shall be considered renewed for a specified period.

Article 73

If the contract is for unspecified period, either parties shall terminate it for a valid reason after
notifying the other party in writing thirty days prior to termination date for the workers on monthly
pay and fifteen days for other workers.

If the party who cancel the contract fails to observe the provided period he shall be obliged to pay
to the period notice or the remainder therefor.

The last wage of the worker shall be taken as basis for the assessment of the indemnity that is for
workers who are paid on a monthly, weekly, or daily rate. As for workers whose payment is fixed on
piecework basis, the compensation shall be calculated on the basis of the average pay for the
actual workdays during the last three months.

Article 74

If the contract of work is canceled for a non-valid reason, the party who is prejudiced by such
cancellation shall be entitled to an indemnity to be assessed by the concerned committee, where
material and moral harms shall be taken into account, and also the period of service, age of the
worker, wages, family burdens he shoulders, the degree of the arbitrariness of the discharge
decision, the extent of the decision affects on the worker’s reputation and any other conditions in
accordance with rules of equity and current generally accepted practice.

Article 75

The worker who is discharged for a non-valid reason shall submit an application to director of labor
office requesting stay of execution within fifteen days from date on which he received the discharge
note. The director of labor office shall immediately proceed on taking the necessary action to settle
the dispute in an amicably manner.

If settlement not reached, he shall refer the application to the competent commission along with a


                                                                                                  18
                                                                       LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA



memorandum of five copies in which he summarizes the dispute and presents the argument of both
parties, and the comments and recommendations of labor office for settlement of the dispute. T he
chairman of the commission shall, within three days from referral of the application, fix a hearing for
the examination of stay of execution within two weeks form date of such referral.

Employer and the worker shall be given a notice to attend the hearing. The commission shall
decide on the application within two weeks from date of the first hearing. Its decision on this respect
shall be final. A hearing for examination of the basic issue shall be fixed within the following week. If
the commission orders stay of execution, the employer shall be ordered to pay the worker a sum
equivalent to his pay from the date of his discharge.

The employer may return the worker to his job within one week of the issuance of the decision and
pay him his wages, and the dispute shall be considered settled. Such settlement shall be reported
to the chairman of the commission. If settlement is not reached during the said period, the
commission shall decide on the basic issue within a period not exceeding fifteen days from date of
decision issuance for stay of execution. If commission finds that the worker discharge was not for a
valid reason, it may order his reinstatement with payment of his entitlements and any other
compensation.

The proof that discharge was based on valid reasons shall lie with the employer. The decision in
this respect shall be considered as instance. The discharge shall be considered for no valid
reasons if it followed the claim of the worker for his legitimated rights and when proved that there
are no other reasons for the discharge. In this case the employer shall be ordered to reinstate the
worker to his job and pay him his wages from the date of discharge up to the date on which he
returned to work and his service shall be considered continuous.

The discharge shall be considered with no valid reasons when it was caused by the refusal of the
worker to comply with the instructions of his transfer from his original place of work where that
transfer was not for valid reasons necessitated by work requirements, or if such transfer may cause
serious prejudice to the worker.

In this case the employer shall be ordered to return the worker to his job in the original place of
work and to pay him his wages from date of discharge, and his service shall be consi dered as
continuous. The worker’s right in applying for stay of execution shall laps if he fails to submit his
application within the prescribed fifteen days, without depriving him the right to claim for his other
legal rights during the period of the one year specified Article 13 of this law.

Article 76

If the work contract is concluded by a person who act on behalf of the original employer or works
for his account, both, such a person or the worker shall be held responsible (jointly) for the
fulfillment of obligations prescribed hereunder.

Article 77

The contract of work must be in writing in two copies in Arabic language, one to be retained by
each party. The contract shall be considered existent even if it is not in writing, and the worker may
prove his right by all means. Any of the two parties may request a written contract at any time. As
for governmental or general establishment officials, the employment letter issued to them by such
circle shall be considered as a contract of work.

Article 78




                                                                                                      19
                                                                         LABOR AND WORKMEN LAW
                                                                       OF THE KINGDOM OF SAUDI ARABIA


The employer may not transfer the worker to another place rather than his original place of work
when that necessitates the change of the worker’s residence, or if it cause serious prejudice to the
worker and where there is no valid reasons dictated by nature of work.

Article 79

The worker who is paid in a monthly pay rate may not be reclassified to receive his pay in a daily
pay rate, weekly pat rate, hourly or piecework rate unless he agrees to that in writing, provided that
doe’s prejudice his rights acquired before. The worker may not be classified in a lower grade.
Worker may not be asked to perform a job that is essentially different from the job agreed upon in
the contract unless he agrees in writing provided that should be dictated by nature of work and shall
be on temporary basis.

Article 80

The employer may not pay foreign workers wages and awards exceed the wages paid to his
Saudis workers when their skills and technical abilities and educational qualifications are equal
except in the limits necessitated by the need to attract foreign workers.

Article 81

If the worker causes damages or destruction of materials or machinery or products of the employer
due to the worker’s fault or his disobedience to employer instructions, the employer shall withhold
from his wages an amount required for the repair or restating things, provided that the deducted
amount shall not exceed the total pay of five days a month. The employer may claim for a higher for
recovery if the employer has other properties.

Article 82

The work contract shall not end upon the employer’s death, it shall end upon the death of the
worker or his disability to perform his job due to illness resulting in his absence for not less than
consecutive ninety days or an aggregated period not exceeding one hundred twenty days, and
such disability shall be established by a medical report. The employer must refrain from canceling
the contract during the period o illness, and in case of termination, the employer shall pay the
worker the full termination award according to the provisions of this law, without prejudicing the
rules of injuries compensation.

Article 83

The employer may not cancel the contract of work without termination award, advance notice, or
indemnity, except in the following cases provided that the worker shall be given the chance to
submit his objection against the cancellation:

1. If the worker during work caused assault to the employer or to his supervisor.

2. If the worker fails to fulfill his essential obligations or if he fails to disobey the instructions or to
   observe the safety instructions in spite of the written warning delivered to him.

3. If it is proved that the worker has adopted a bad conduct or committed an act affecting honesty
   or honor.

4. If the worker in intent to cause losses to employer committed an act or negligence provided that
   the employer shall inform the concerned circles on the event within twenty four hours from time
   on which the event come to his knowledge.


                                                                                                         20
                                                                       LABOR AND WORKMEN LAW
                                                                      OF THE KINGDOM OF SAUDI ARABIA



5. If it is proved that the worker has committed counterfeit to obtain the job.

6. If the worker is appointed under probation.

7. If the worker absents himself with no valid reason for more than twenty days a year or for ten
   consecutive days, provided that a written notice shall be delivered to him after ten days in the
   first case and after five days in the second case.

8. If it is proved that the worker has left without the permission of the concerned physician the
   hospital or any place prepared for his medical treatment, without prejudice his rights in
   receiving compensations of wok injuries according to the rules of GOSI.

9. If it is proved that the worker has disclosed the industrial or commercial secrets of his work.

Article 84

The worker may in the following cases leave the place of work before the end of the contract
without a prior notice and without prejudice his right in receiving termination award or the indemnity
for the losses come upon when the cancellation is made by the employer:

1. If the employer fails to fulfill his essential obligations towards the worker.

2. If he is called upon by the employer to perform a work that is essentially different from the
   nature of the work described in the contract, or if the employer transferred him from the original
   place of work to another where such transfer necessitate the change of his residence and
   causes serious prejudice to the worker and where is no valid reason indicated by the nature of
   the work.

3. If the employer or whoever is acting on behalf of him committed an assault or an immoral act
   against the worker or on of his family members.

4. If there is a serious danger threats the worker’s safety or the health, provided that the employer
   failed to remove such danger.

5. If the employer or his representative has mislead the worker at time of concluding the c ontract.

6. If the employer has compiled the worker through unfair treatment toward him or to appear as
   terminating the contract.

Article 85

The employer shall be bear the costs of returning the worker to the place where the contract was
concluded or the place from where he was brought during the period determined by labor office at
the end of the work or at the termination of the contract for one of the reasons provided in Articles
82, 83 and 84 conditioned that the worker shall not have engaged in another job at his prior place
of work or shall have not ceased to work for a valid reason, or shall have expressed in writing
before the labor office his desire not to return to the place where the contract was signed or to the
place from where he was brought.

If the employer shall fail to fulfill this obligation, the concerned circles upon the request of labor
office shall repatriate the worker immediately and recover costs from employer. If the discharge is
under Article (83), employer shall be exempted from such obligations if he requested so.



                                                                                                     21
                                                                     LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA


Article 86

If the service of the worker shall come to an end, the employer shall return to him all his deposits,
and worker shall be entitled to obtain and free of charge a work certificate contains salary and
period of service and any other facilities he was receiving. Grounds shall be stated where the
certificate contains what may prejudice the worker’s reputation or if it diminishes the worker’s
chances to obtain a job.

Article 87

If the contract of specified period shall come to an end, or if cancelled by the employer in the
unspecified contracts, the employer shall pay to the worker a service award calculated as follows:

    Half month pay for each year for the service of the first five consecutive years.
    Full month pay for each of the following years

The last monthly pay shall be the basis of calculations, and the worker shall be entitled to the award
of fraction of the year according to portion he spent in service and shall also be entitled to the
award provided at the beginning of this article in the following cases:

1. If he is called to military service.

2. If he resigns for marriage or for childbirth.

3. If he left the work as a result of force majeure beyond his control.

In exemption to the provision of Article 6 of this law, agreement may be made not to include
commissions and sales percentage (which naturally increases and decreases) in the calculation of
the service award.

Article 88

In the contracts of unspecified periods, the worker shall be entitled to receive one third of the
service award provided in the previous article when he resigns after a period of service not less
than two consecutive years and not more than five years, two thirds if the period is more than five
consecutive years and less than ten years, and to a full award if he resigns after ten years in
service provided that he shall in all cases notify and in writing his employer about his intention to
resign thirty days before he leaves the work prior.

Article 89

All obligations shall be discharged, in spite of, dissolution, liquidation, shutdown, bankruptcy,
merge, subdivision of the establishment or its conveyance by inheritance, legacy donation, sale,
assignment, or any other dispositions. With exception of the liquidation, bankruptcy and authorized
final shutdown, the contract shall be considered in force in all above-mentioned cases.

Article 90

The original employer and the new one, shall be jointly responsible for the discharge of all
obligations arising from the work contract before the transfer of ownership, and obligation arising
after that shall be assumed on the new employer.

OBLIGATIONS OF EMPLOYERS



                                                                                                   22
                                                                       LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA


Article 91

In additions to the rules and provisions of this law, the employer shall:

1. Treat his worker in the due respect and refrain any word or deed that may affect their dignity or
   religion.

2. Facilitate all tasks related to labor inspection teams and control application of rules and to
   provide the concerned authorities with the required information.

3. Grant his workers the adequate time to exercise their rights and regulate such exercises in a
   way that would not affect the progress of work.

Article 92

The employer shall be obliged to pay the worker his wages at the time and place specified in the
contract.

Article 93

If the worker reports to work at the hours of the work day specified in the contract and is prevented
to perform his job, he shall be entitled to the pay of that day.

Article 94

The employer or who supervises the work shall prevent the entry of any substance or the
consumption of the same, and whoever found in possession of such substance shall be subject to
the legal punishment in addition to the administrative penalties.

Article 95

Employers who employ more than ten workers shall issue their workers a service card to bear the
signature and the stamp of employer, name, nationality of the worker and his occupation, date of
birth, date of hiring, his wages and others. Date of termination shall be added when his contract
comes to an end. The minister may issue card forms that shall be applied by the employers.

OBLIGATIONS OF WORKERS

Article 96

In additions to the rules and provisions of this law, the workers shall:

1. Perform the work required of them according to the work contract under the control and
   direction of the employer and in accordance of his instructions, where such instructions do not
   violate the contract, the law or the public morals, and if obeying such instruction doesn’t expose
   to danger.

2. Return in consumed materials to the employer and to take care of the machines and equips.
   Replaced under their disposal.

3. To adhere to good conduct and behavior during work time.

4. Extend their assistance without claiming for additional pay, in cases of disasters and dangers
   that threaten the safety of workers or the place of work.


                                                                                                  23
                                                                      LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA



5. To undergo the medical examination for the purpose of making sure that they are free from
   occupational, common or incurable diseases.

6. Keep the technical, commercial or industrial secrets of material they produce or they participate
   in producing it, such secret that may prejudice the interest of the employer.

Article 97

1. If the worker succeeded to make a new invention during his service, the employer shall not
   have the right in that invention.

2. The invention made by the worker shall belong to the employer when the contract states that
   the worker shall devote all his efforts for the said invention.

3. If the invention has a significant economical value, worker may in the mentioned cases claim
   special compensation which shall be assessed in accordance to principal of equity. Such
   assessment shall take in consideration the amount of assistance extended by the employer.

Margin Annotation:

Above Article 97 has been canceled as per the provision of Article 61 of the “patent invention
regulations” issued by the Royal Decree No. M/38 dated 10/6/1409H where Article 12 of those
regulations provided the following: “The patent invention shall belong to employer whenever it was
resulted in the execution of a contract, or if it contains an obligation of full exertion of effort in
invention, or if the employer proved that the worker would have not reached the invention except,
as result of utilizing the facilities and information granted by employer. The provision of the previous
article shall not prejudice the worker’s right for the obtainment of special compensation agreed
upon by the two parties or assessed by the commission in the lights of the different circumstances
of the contract and the economic value of the invention. Shall be illegal any agreement that
deprives the work from this right. The previous provision shall be applied to governmental workers.
The application for obtainment of patent that received from the worker (inventor) shall be
considered as if received during his service even if he has left the work two years back.

Article 98

The worker shall use the protection equipment designated for operation and to be guided through
the instructions set for the reservation of his health and his protection from injuries and diseases
and he shall refrain from ant act or negligence which would result in failure to abide by the
instructions or misusing or impairing the equipment provided for the protection of his fellow workers.
The employer may include the penalty of whoever violates the provisions of this article in the
disciplinary rules.

CHAPTER 5 – MARINE LABOR CONTRACT

Article 99

Any work contract signed between the owner or the financier of a Saudi ship of not than 500 tons,
and a sea man or a master to perform work on a board ship, or for a sea voyage is considered a
marine work contract and subject to the provisions of this law, provided that such provisions doesn’t
contradict the provisions of this chapter.

Article 100



                                                                                                     24
                                                                     LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA



The term “Financier of ship” shall mean any natural person or company or public establishment for
whose the account the ship is fitted out.

Article 101

The term “seaman” shall mean any person, male or female, who works on board ship.

Article 102

All workers on the ship shall be subject to the authority and the orders of the master.

Article 103

All the work contract of seamen shall be entered in the records of the ship, under pain of nullity and
liability. Such contract shall be written in a clear language, leaving no doubt or controversy about
the determined right and obligations. The contracts shall provide clearly whether it is made for
unspecified period or for one voyage where the town or sea port in which the trip ends shall be
determined.

Article 104

The work contract must provide the nature of the work assigned to the seaman and the method of
performance, the wages and supplements to be paid to him, and any other details.

Article 105

Work regulations and conditions shall be posted on board ship in the place that reserved for the
crew. The terms and conditions shall include the following:

1. Obligations and duties of the seaman towards the financier of the ship and work regulations
   board ship.

2. Obligations of the ship financier towards seamen in regard of wages rewards and others.

3. Methods of wages suspension or deductions and payment of loans against wages.

4. Place and time for final settlement.

5. Rules of sleeping accommodations and food supply on board ship.

6. Illness and injuries of seaman.

7. Conduct of seamen and their repatriation to their countries.

8. Paid annual vacations of seamen.

9. Service award and other indemnities and compensation payable at the end of service.

Article 106

The work contract shall be written in four duplicates, one copy for the master, second copy for the
seaman, third copy to be filed at the cost guards and the forth shall be delivered to labor office. The
contract must show the date on which it is concluded, the place and the name of the seaman, his



                                                                                                    25
                                                                    LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA


surname, age and nationality, home and the work assigned to him. If the contract is made for one
voyage date and place of sailing shall be mentioned.

Article 107

The seaman must satisfy the following condition:

a. Must have completed 18 years of age.

b. Must be in possession of an appropriate certificate permitting him to work in marine service.

Article 108

All the entitlements of the seaman shall be payable in the official currency, and may be paid in
foreign currency if it has become due when the ship is outside the territorial waters and the seaman
agrees to that in writing. The seaman may request the employer to pay his cash dues to whoever
he may designate.

Article 109

The employer shall deposit the entitlements of the descendent or lost seaman or to the seaman
who is not able to receive them to the chairman of the primary commission.

Article 110

The employer shall bear the cost of the sleeping accommodation and food of the seaman. This
shall be regulated with decision to be issued by Minister of Labor.

Article 111

Any seaman participated in the rescue of another ship shall be entitled to a share in the
compensation determined for such a deed regardless the wage.

Article 112

The employer may cancel the contract without an advance notice or compensation or award if the
ship is sinks or confiscated or lost. The employer, also, may cancel the contract without an advance
notice or compensation or award if voyage is cancelled and was on the basis of one voyage trip.

Article 113

In cases that the contract expired or cancelled the employer shall be obliged to:

a. To return the seaman to the port from which he departed at the beginning of the contract.
b. To secure food and sleeping accommodation for the seaman until he reached the port.

Article 114

Working hours on board ship shall not exceed twenty-four hours in two consecutive days, or one
hundred and twelve hours in fourteen consecutive days while the ship is on high seas, and eight
hours while the ship is in port. The seaman may be put to work on the rest days while the ship is in
port for two hours for routine cleaning works.

CHAPTER 6 – PROTECTION OF WAGES


                                                                                                   26
                                                                     LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA



Article 115

The Council of Ministers has the right, when necessary, to specify minimum wage rates in general
or for a given district or occupation. The Council of Ministers shall be issued such decision
according to the recommendations of the Minister of Labor, and shall be effective from the date of
its publication in the official gazette. For the recommendation of minimum wages the Minister of
Labor shall seek the assistance of a committee composed of the deputy of labor office, finance and
national economy, petroleum and minerals sources, commerce and industry. Minister of Labor shall
select two additional members of experience and knowledge.

Article 116

The wage and all due entitlements of the worker shall be paid in the official currency during the
working hours according to the following rules:

a. Workers on the daily rated shall be paid once a week at least.

b. Workers on the basis of monthly pay shall receive their wages once a month.

c. If the work is performed in piece and needs a period that exceeds two weeks, a payment
   proportionate to the executed work shall be made to him every week and full balance shall be
   paid in full within the week following the completion of the work.

d. In other cases wages shall be paid to workers once a week at least.

Article 117

When the service of the worker is terminated he shall be paid his wages immediately, however, if
he leaves the work on his own accord his wages may be paid to him within seven days at the most
from date on which he left the work.

Article 118

The employer may have the right not to pay the worker any due entitlements unless the latter
acknowledge receipt on special record prepared for that purpose at the place of work according to
the form issued by the labor office.

Article 119

No deductions from the worker’s wages may be made to satisfy private rights except in the
following cases:

a. Recovery of advances or excess amounts paid to him provided that such deduction shall not
   exceeds 10% of such a wage.

b. Dues of social insurance.

c. Contributions of the worker in the saving fund and advances due for the fund.

d. Any other installments to any plan for construction of houses, if any.

e. Fines inflicted on the worker for offenses under Article 125 and any amounts withheld in
   consideration of any damage he had caused according to Article 81.


                                                                                               27
                                                                    LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA



f.   Any debt to be recovered in execution of judiciary judgment provided that deducted amounts
     shall not exceed one–forth of the wage due and provided that debt of alimony and debt for food
     and clothing shall be satisfied before the other debts.

Article 120

The percentage of deductions shall not exceed in all cases half of the wage due unless it is proved
to the committee the possibility of increasing the deduction beyond that percentage, or that the
worker needs more than one-half of his salary and under no condition be paid more than three
quarters of his salary.

Article 121

In any amount is deducted from the worker's wages for any reason rather than the provisions
specified in this law and without the consent of the worker or if the employer delays the payment
without an accepted justification, the worker or his representative or the head of labor office may
submit an application to the commission so that it may order the employer to return to worker any
wrongly-deducted amounts or to pay him his outstanding wages.

And if it is proved to the committee that the employer has unjustifiably deducted the said amounts
or delayed payment of the wages, the commission may impose on the employer a fine that shall not
exceed double the amount deducted from the worker’s wages or double the outstanding wages.
Collection of the ordered amount shall be made through the administrative channels.

Article 122

Service shall be rendered for pay when that service consists in a work not customarily performed if
it is in occupational line of the worker who performed it.

Article 123

a. If the wages that employer is obliged to pay are not provided in the contract of work or the labor
   regulations, the wage determined for another work of the same kind shall be adopted, if exists,
   or shall be determined with the general accepted practices of the trade, or, otherwise the
   commission shall determine the wage according the requirements of equity.

b. That shall be followed in determining the quality and scope of work, which the worker must
   perform.

Article 124

The under-mentioned amounts shall be considered as part and parcel of the wage and shall be
taken into account when computing the amounts to be withheld.

1. Commissions given to peddlers, traveling salesmen, and commercial representatives.

2. Percentages paid to employees of the commercial establishments on the price of their sales
   and allowances paid to them on account of high cost of living.

3. Any grant paid to the worker in addition to his salary, and the awards paid for his honesty and
   those for increase in his family obligations and what alike, if such amounts are determined in
   the contract or in the labor regulation, or if paid as a general accepted practice and considered
   by the workers as a part of the wage and not a gratuity.


                                                                                                  28
                                                                    LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA




Article 125

The employer who employs more than twenty workers must post a set of rules covering penalties
and rewards and the conditions under which these are to be imposed or granted and he shall post
such rules in a conspicuous place in the establishment. To be effective, Minister of Labor thereto
must approve such rules and any modifications within two months from the date of their submittal.

If the said period elapses without the minister’s approval or objection, they shall become effective.
The minister may by decision issue standard rules for penalties and rewards relevant to the nature
of the work, in order that employers may be guided by them in preparing the rules of theirs own
establishments. The employer may not impose on the worker, for a single offense, a fine exceeding
the wage of five days, or suspend him as a disciplinary measure without pay for a period exceeding
five days for a single offense.

In all cases, the worker shall not be subject to more than one penalty for the same offense, nor
shall the amount withheld from his salary in single month in satisfaction of the fines imposed upon
him exceed the pay of five days; nor shall the period of suspension from work without pay exceed
five days per month. Margin Annotation: The said “Standard rules for penalties and rewards” has
been issued under the decision of the Minister of Labor No. 119 dated 12/4/1390H.

Article 126

The worker may not be accused of any offense that was discovered more than fifteen days later;
nor may penalized for more than thirty days after the offense is proven with regard to workers on
monthly pay rate , or more than fifteen days after the offense is proven with regard to other
workers. No penalty may be imposed upon a worker except after hearing his remarks and
examining his defense. The worker shall have the right to object before the labor commission,
which shall issue the final decision in that matter within one week from date of recording the
objection with it.

Article 127

Fines imposed on workers must be recorded in special register that shows the name of the worker,
amount of his wage, and reasons for the action and the date on which the fine is imposed.

CHAPTER 7 – PROTECTION AND SOCIAL SERVICE

Article 128

Every employer shall take the precaution required for the protection of his worker from hazards and
diseases resulting from work and machinery used in work, and the protection and safety of work,
and he shall not withhold any amount of the worker’s wages for providing such service.

Article 129

Employers shall observe following rules:

a. To keep the establishments clean and in a good sanitary condition free from obnoxious odors.

b. To ventilate the work rooms in the establishment and to keep sufficient area for breathing
   according to the health levels and standard determined by Minister of Labor.




                                                                                                  29
                                                                    LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA


c. To take the necessary precaution for the protection of workers from injuries resulting from, any
   gas, dust, smoke or any other waste that may generate n the course of the work.

d. To provide sufficient lights during working hours.

e. To provide water closet in an easily accessed places in the rate of on for each five workers or
   less.

f.   Adequate potable water shall be provided for workers at suitable places.

g. Adequate water and facilities shall be provided for workers to wash themselves.

Article 130

If the work exposes the worker to a physical injury, poising or disease, the Minister of Labor may
issue a decision to determine such a work and the measures to be taken by the employer to protect
the worker. The employer or whoever is acting on his behalf shall inform the worker upon his
employment of the hazards of the occupation and the precautionary measures that he must take.

Margin Annotation:

Minister of Labor issued decision No. 435 dated 4/11/1404H determining the work and occupations
that expose workers to poisoning and the measures, which shall be taken by employers to protect
their workers (see page 127).

Article 131

The employer shall enclose all the moving parts of power generators and transmission gears, within
a protective guard. He must also fence the manholes and all obstructions that may expose workers
to dangers of falling or collision.

Article 132

The employer shall be responsible for emergencies and incidents which may cause injuries to
persons other than his workers, who may enter places of work by virtue of their official duties or by
the approval of the employer, where such injury is caused by the employer negligence to take the
technical precautions required by the nature of such a work , and shall compensate them for the
damage they my suffer.

Article 133

Every employer shall take the precautions required for fire fighting and to make available the
technical measures for that purpose including the securing safety exits and to maintain them in
serviceable conditions at all times.

Article 134

First aid service shall be provided by the employer according to the standards determined by the
Minister of Labor in collaboration with minister of health. The employer shall employ a nurse if his
workers are more than fifty in single location or within a radius of fifteen kilometers. The employer
shall assign a physician to examine and treat the workers at a place provided by the employer.
Such service shall be free of charge whether it is during working hours or otherwise. In case
treatment requires specialist or a surgical operation, the expenses shall be taken from social
insurance fund. The cost of treatment, medicine or hospitalization in government of chainable


                                                                                                  30
                                                                     LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA


hospitals, shall be determined pursuant to the decision made by the Minister of Labor in agreement
with the minister of health or as provided in the rules of the social insurance organization. In case
the number of worker is less than fifty workers, the employer shall provide them with a medical first
aid cabinet containing bandages , medicines, and antiseptics that determined by the Minister of
Labor in agreement with the minister of health in order to provide a first aid to workers. Margin
Annotation: Minister of Labor issued decision No. 404 dated 17/6/1394H in regard of the measures
for the medical aid in the places of work (see page 167).

Article 135

Employer who employs more than fifty workers shall notify the labor office of the physician name
whom he has selected for the treatment of his workers, and if the number workers more than one
hundred, he shall notify the labor office of the names of they physicians and specialists whom he
has selected for the treatment of his worker and also the names of hospitals designated by him for
such purpose. And in all cases he has to notify the labor office on the minimum days fixed for
examination of his worker provided that the minimum shall not to be less than three days a week.

Article 136

Every employer shall prepare a medical file for each worker indicating the result of the examination
performed to him signed by the worker upon employment and description of his illness and stages
of treatment , period absence from work and whether it is an ordinary disease or a work injury.

Article 137

The employer who employs more than fifty workers shall set a saving plan to be approved by the
Ministry of Labor provided that the participation in such saving system shall be voluntary and to
provide to them at his own expenses rest and recreation facilities as per the specifications decided
by the Minister of Labor. If his workers are five hundred or more, the minister, after taking in
consideration, the nature of working area and the number of workers, may decide that the employer
shall carry out all or a part of the following at his own expenses:

a. To provide at places of work shops for sale of food, cloth and others requirements for a suitable
   prices.

b. To provide parks and playing fields and cultural libraries for the workers.

c. To prepare medical arrangements for the protection of his workers and for the treatment of their
   legal dependants in consideration of the provisions of the social insurance regulations.

d. To provide schools for education of worker’s children, and to provide adequate mosques in the
   places of work.

e. To prepare programs to combat literacy among the workers.

f.   To prepare rules for employment, promotion and increments allowances to be agreeable to the
     Ministry of Labor.

Article 138

Concessionaires companies that entrust execution of its business of construction and maintenance
to other contractors shall stipulate in their contracts that they are obliged satisfy the rights and
assume all the obligations that occur to workers if the concessionaire company itself perform such
works(1).


                                                                                                  31
                                                                      LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA



Margin Annotation:

The original works provided in Article 8 and Article 138 of this law, shall mean the normal activity for
workers. As for companies it shall mean the original works for which the company was established
to perform those works which are prescribed in the creation contract or in the concessionaire
contract if the company is one of these companies. This is as per the decision of the Council of
Ministers No. 19 dated 26/2/1400H (see page201).

Article 139

The workers contracts working for Concessionaires companies shall be subject to the same basic
rules applicable for workers of such companies and shall benefit from all grants, compensation and
wage rates in force in such companies.

Article 140

Concessionaires companies assume legal liability toward the workers of its contractors in
application of the two preceding articles, and they may in return withhold the price of work in the
manner as would guarantee such liability until the expiration of the contract.

Article 141

In all contracts in which contractors fail to apply the rules of the preceding articles, the Minister of
Labor and social affairs by decision based on the report of the chief of labor inspectors shall have
the right to cancel such contracts following an investigations he shall conduct.

Article 142

Every employer shall provide means of transport for his workers from place of residence or a given
assembly points to place of work and return them daily if such places are not reached by ordinary
regular means of transport.

Article 143

With regard of workers who perform their work in places far from inhabited areas, (1) and
especially, for those who work in mine quarries, centers of oil exploration, extraction or exploration,
the employer shall be obliged through a decision issued by Minister of Labor and social affairs, to
the following:

a. To provide workers with adequate living quarters, so some of such quarters shall be assigned
   to married workers, conditions and specifications for such dwellings quarters as well as the
   rates chargeable to workers for using them shall be determined by a decision of the minister.

b. To provide his workers with three meals a day at clean places that meet the sanitary
   requirements, quantities and kind of food and cost of each meal shall be determined by the
   decision of the Minister of Labor. The food should be served to workers hygienically wrapped.
   These meals may be replaced by any financial allowance.

c. To provide his workers medical, social and cultural services determined by a ministerial
   decision.

d. And with regard to those who perform works in exploration areas and living in camps, employer
   shall provide them with suitable camps free of charge, potable water, three meals a day in


                                                                                                     32
                                                                     LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA


    places prepared for that purpose, quantities and kind of food shall be determined by the
    minister and meals may not be replaced by any financial compensation.

e. The worker may request in special medical care, upon recommendation of the physician,
   special food, and if his request is not satisfied, he may demand a financial compensation in lieu
   of the meal.

Margin Annotation:

The decision of the Minister of Labor No. 651 issued on 29/12/1401H has determined such areas
as follows: (see page 147).

Article 1:

The inhabited quarter including all its towns, habitable areas, if any. The following areas, except for
towns and places of work not far from inhabited areas for more than thirty kilometers, where there
is a paved road, or not more than 25 kilometers where the road is rough, these areas and towns
are:

Western province except for following towns: Holly Makkah, Jeddah, Taif, Yanbu, Rabi, Al Madina
Al Munawra, Ymluj, Dhbba, Alwajh, Hugal, Badre, Al Gunfudda, and Allath.

Central province except for following towns: Riyadh, Diryah, Al-Kharaj, Liyla in Alaflaj, Shugra,
Anyza, Burada, Al Myjmaa, Al Rus, Al Dawadmi, Afif, Murrat, Al, Gwaga, Durma, Huta Bani Tamim,
Huta, Sudir, Al Silil, Al Harig, Alzulfi, Wadi Al Dawoser.

Southern Province except for following towns: Abha, Khamis Mushait, Najran, Bisha, Dharan Al
Gurab, AlNamas, Albaha, Blgurashi, Sabia, Abu Areish.

Eastern Province except for following towns: Dammam, Khobar, Qatif, Sihat, Ras Tanura, Rahima,
Abu Gag, Alkhafji, Al Jubail, Alhafouf, Almubrz, Althugba, Dharan, Safwi Northern Province except
for following towns: Tabouk, Ara ar, Sikaka, Alhouf, Rafha, Hail, Algriyat, Tarif, Hafr Albatin.

Article 2:

By way of exemption, the rules of this decision shall not apply to the developing areas and town,
and such areas shall be determined through a decision to be issued by the Minister of Labor and
Social Affairs.

Margin Annotation:

The decision of the Minister of Labor No 89 issued on 10/3/1403H has determined the
specifications and conditions of the worker’s quarters as follows: (see page 135).

Article 1:

Every employer who employs workers in areas far from inhabited areas specified in the referred to
ministerial decision no. (651) dated 1401H, in particular in mines, extractions, oil exploration
centers shall, in the worker’s quarters to be provided by him, the following conditions and
specifications, without breaking valid rules and regulations.

Article 2:

The worker’s quarters shall be established away in a distance not less than one kilometer from


                                                                                                    33
                                                                      LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA


industrial areas and places of work that produce materials that cause pollution like gases, dust,
smoke and waste material.

Article 3:

The decision shall be effective as of the date of its publication in Um -Alqurra paper.

Article 144

Every employer who employs more than fifty women shall entrust to a qualified female nurse to
extend medical care to worker’s children under six years of age.

CHAPTER 8 – CREATION OF NEW ESTABLISHMENT

Article 145

Any person who wishes to construct new buildings to use it as a new project, or to add an annexes
to an existing mechanically-operated project, or to increase the automatic power in a running
project, or to covert an existing building into mechanically-operated project, where he employ
twenty workers, shall submit an application to the Ministry of Commerce and Industry (Industrial
Research Center) in order to obtain a license and he shall attach the following:

1. A map of the site.

2. Design for the building.

3. Layout indicating the locations of the machinery, equipment’s and specifications.

4. Drawing for the equipment’s or its photographs.

In addition to that, he shall submit any other information clarifying the nature of the work he shall
carry out as will be requested by the Ministry of commerce and industry. Plans of the buildings must
contain all details on locations of doors and windows and its dimensions, ventilation means, stair
cases, fire escape doors, when the ministry id satisfied, it shall issue the final decision toward the
issuance of the license , the ministry may seek the opinion of the ministry of Health in regard of
health respect if necessary.

Article 146

If the labor office finds that any building or part of it or machinery or devices of the establishment
constitute a danger to human life or safety, and after consulting the ministry mentioned in previous ,
shall issue to the manager of the establishment a written order requesting him to make the
necessary repairs within specified period and to submit technical report showing that he has made
the repairs on time.

The labor office may , in its written order, specify the protective measures deemed necessary to
prevent any danger and it may prevent the use of the machines or building which constitute the
source of danger until it is repaired or replaced. The manager of the establishment may, within
thirty days from date of notification, appeal to the minister of commerce and industry, who shall,
after consulting the ministry of commerce and industry, uphold, modify or cancel the order.

Lodging the appeal shall not entail the suspension of the protective measure ordered by the labor
office, not shall it entail stay of execution of the appeal order, unless the Minister of Labor decides
otherwise.


                                                                                                    34
                                                                    LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA



CHAPTER 9 – WORKING HOURS - WEEKLY REST

Article 147

Worker may not employed in an actual work for more than eight hours in any one day, or forty eight
hours a week, in all the month of the year, except for the month of Ramadan, during which the
working hours should not exceed six hours a day, thirty six hours a week exclusive intervals for
prayer, rest or food. Working hours may be increased to nine hours a day in respect of certain
categories or in respect of some industries and operation where the worker doesn’t work
continuously such as seasonal establishment, hotels, shops and restaurant and also, working hours
may be reduced in respect of some categories and some hazardously or harmful works.
Determination of such work refereed to above shall be made through decision from Minister of
Labor.

Margin Annotation:

Royal Order No.454/8 dated 118/3/1405H (page 187). This Royal order decided that the reduction
of working hours during Ramadan is for Moslems workers only.

Article 148

The working hours shall be scheduled, that no worker shall work more than five consecutive hours
without interval for prayer and food not less than half an hour in one time or an hour and a half
during the total working hours, so that the worker shall not stay at the place of work for more than
eleven hours in one day. In case of factories where work is performed in successive shifts day and
night, the minister shall regulate granting of interval to workers.

Article 149

Friday, is considered the official holiday, a day of rest with full pay, however, the employer may ,
through the approval of labor office, replace it by another day for some of his workers provided that
the working days a shall not exceed seven days a week and workers shall be enabled to perform
their religion duties.

Article 150

In the following cases, the employer may not adhere to the provisions of Articles 147, 148, 149, of
this law:

a. Annual stock taking, balance sheet, liquidation, closing of accounts, preparation for reduced
   price sale, preparation for festive seasons, provided that the worker shall not remain in job in
   excess of the prescribed daily working hours for more than thirty days in one year.

b. If the work is for preventing danger accident, repair of damage resulting from such danger to
   avoid certain loss of perishable mentioned.

c. When the work is designed to cope with unusual pressure. In the last two cases a report shall
   be submitted to labor office within twenty four hours stating the emergency case and the period
   required for the completion of the work and to obtain a written confirmation in that regard.

d. Holiday and festive seasons and occasions and seasonal operations as may be determined by
   the Minister of Labor, and in all foregoing cases, the actual working hours shall not exceed ten
   hours a day.


                                                                                                  35
                                                                   LABOR AND WORKMEN LAW
                                                                  OF THE KINGDOM OF SAUDI ARABIA




Article 151

The employer shall pay the worker an equivalent of 50% to his normal wage for the additional work
where such work is preformed in the weekly day of rest or on feast days or on the official holidays.

Article 152

The provisions of Articles 147 and 148 shall not apply in the following cases: preparatory and
supplementary operation which must be completed before or after the end of the day.

a. Work which is necessarily intermittent.

b. Worker assigned to watch or cleaning duties.

c. Works in drilling or exploration for petroleum or mined in remote areas.

d. Works determined in item (a, b, c,) of this article and the maximum hours decided by the
   Minister of Labor (1).

However, the actual working hours for works shown in item (d) shall not exceed 48 hours a week.

Margin Annotation:

The decision of Minister of Labor No. (16) dated 18/1/1297H has decided the following in regard of
the mentioned preparatory and supplementary works (see page 157).

Article 1:

1. Preparatory and supplementary works shall mean such works which may be accomplished
   before or after the end of the working day, such as preparations of material and equipment
   required for practicing the work, or the delivery of materials from warehouses, maintenance of
   machinery and equipment, works based of shifting system, and other alike.

2. Work which is necessarily intermittent shall mean that work which is not performed
   continuously, and which consists of intervals, such work during which workers do not perform a
   continual activity, and it doesn’t require regular attendance of worker, such as the job of the
   technicians who employed to repair, maintain or operate some machines, or those workers
   employed for loading and off-loading works, and railway and bus station traffic workers and
   others who practice jobs as such.

3. Worker assigned to watch or cleaning duties:

First: Workers assigned to watch shall mean:

1. Workers assigned for to watch places, equipment’s or properties at night or day time, without
   being assigned to any other works that is not necessitated by the nature of the watch s during
   working hours.

2. Workers assigned to watch and operate machines of the potable water.

Second: Workers assigned to cleaning works shall mean:




                                                                                                 36
                                                                       LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA


1. Workers who are assigned to secure cleaning to places of work during the working hours or
   during intervals provided that their continuous work shall not exceed six actual consecutive
   working hours.

Article 2:

The time for the preparatory and supplementary operation may not exceed thirty minutes to be
added to the working hours.

Article 3:

The actual working hours for the work which is necessarily intermittent shall be ten hours a day,
and shall be reduces to eight hours a day during the month of Ramadan, provided that the worker
shall be granted a rest of not less than ten consecutive hours during every twenty four hours. The
employer shall enable the workers to perform their prayers on time.

Article 4:

The actual working hours of the workers assigned to watch and cleaning shall be twelve hours a
day and shall be reduced to nine hours during the month of Ramadan. The employer shall enable
the workers to perform their prayers on time.

Article 5:

Application of this decision shall not prejudice the acquired rights of the workers subject to its rules,
such rights which are provided in any other regulation, rules or contract, juridical order, decision or
previous agreement.

Article 6:

To be published on the official paper (1).

(1) The actual working hours for civil guards has been determined through the decision of the
Minister of Labor and social affairs No.(142) dated 21/99/1416H (see page 205)

Article 1:

The actual working hours for the civil guard who are subject to rules of the Royal Decree No (7)
dated 22/1/1413H, shall not exceed eight hours a day , except for the month of Ramadan during
which it shall reduced to six hours a day.

Article 2:

The deputy Minister of Labor and social affairs shall notify those who must put the decision in force.

Article 153

Every worker who has spent on year in the service of the employer shall be entitled to an annual
vacation of fifteen days with full pay paid in advance. It shall be increased to twenty one days when
the worker completed ten continuous years in service. The worker through the acceptance of the
employer, may defer his vacation or part of it to the following year, and he may not forgo his annual
vacation. The employer shall have right to choose the dates of such vacations according to the
requirements of the work, or to grant them on rotational basis in order to ensure the running of his
business.


                                                                                                      37
                                                                     LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA



Article 154

The worker shall have the right to obtain his pay for the unused days of the vacation due if he
leaves the work before enjoying it, and he shall be entitled to the pay of the fraction of the year in
the proportion to that part of the year he spent in work.

Article 155

Every worker shall have the right to enjoy a vacation with full pay in the official holidays that
determined by the decision of the labor and shall not exceed ten days a year. Holidays were
determined by the decision of the Minister of Labor No.(813) dated 16/11/1394H (see page 163).

Article 1:

Three days for Lesser Bairam and shall commence on 29th of Ramadan as per Um Al Qura
calendar. Four days for the Greater Bairam, and commence on Arafat Day National Day of the
Kingdom, commences on the first of Mizzan.

Article 2:

If the employer wishes to increase the number days of the holidays rather than what is determined
in article 1. He shall decide that before or after the dates determined in that article and shall
distribute it before and after the said dates in the direction that achieves the work interest.

Article 3:

This decision shall not deprive the workers rights acquired through any other regulations or
agreement, or contract of work or according to customs and habits or others.

Article 156

The worker may obtain an unpaid vacation not to exceed ten days per year conditioned by the
approval of employer.

Article 157

The worker, while enjoining his vacation, is not allowed to work for another employer, if such
violation is proved, the employer may deprive him from his wage for the vacation period or recover
any vacation pay paid to him.

Article 158

The employer who employs more than twenty workers, shall grant the worker a sick leave for the
first thirty days with full pay, and with three quarters of the pay for the following sixty days during
one year, provided that the illness shall be certified through a medical certificate issued by a
competent physician approved by the employer.

Article 159

The worker shall be entitled to three days vacation for his marriage and one day for the following
cases:

1. In the event a child is born for him.


                                                                                                    38
                                                                   LABOR AND WORKMEN LAW
                                                                 OF THE KINGDOM OF SAUDI ARABIA



2. In the event of death of the wife or any of his ascendants or descendants.

3. The employer shall have the right to request the worker to furnish documents in confirmation
   for the said events.

CHAPTER 10 – EMPLOYMENT OF JUVENILE AND WOMEN

FIRST: COMMON RULES

Article 160

Adolescent, juvenile and women may not be employed in hazardous or harmful industries such as
power-operated machinery, mines, quarries, and the alike.

The Minister of Labor shall specify such works that are regarded as harmful, or may expose women
or juvenile or adolescent to given hazards, requiring prohibition of their employment in such works
or to be restricted by special conditions.

Communications of men and women at places of work is not allowed in all cases.

Article 161

Adolescent, juvenile and women may not be employed during night time between sunset and
sunrise except in cases specified by the Minister of Labor and in case of force majeure.

Article 162

Adolescent, Juvenile and may not be employed for a period that exceeds six hours a day, and
exceptions provided in Articles 150 and 152 of this law are not applied to them.

SECOND: EMPLOYMENT OF JUVENILE

Article 163

The Juvenile who has not completed thirteen years of age shall not be not employed nor enter the
place of work. The Minister of Labor may raise the age limit for some industries or some areas. The
employer and before employing the Juvenile, shall secure from him the following:

1. Birth certificate or age estimation certificate issued by a competent physician and approved by
   ministry of health.

2. Certificate of physical fitness issued by a competent physician and approved by ministry of
   health.

3. Approval of the juvenile guardian. Where the employer employs a juvenile, shall notify the labor
   office within the first week from date of employment. And to keep an appropriate file for him
   indicating the name of the juvenile, age, full name of the guardian, residence, date of hiring,
   that is in addition to the record provided in Article 10 of this law.

THIRD: EMPLOYMENT OF WOMEN

Article 164



                                                                                                39
                                                                      LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA


The workwoman shall be entitled to maternity leave for the four weeks preceding the expected
delivery date and six months following that date. Probable date for delivery shall be determined by
the physician of the establishment or by medical certificate issued by ministry of health.

The employer may not employer employ a workwoman during the six weeks immediately following
her delivery. Workwoman shall be paid half pay during their absence in case she has been in the
service of the employer for one year and with full bay if she has been to work for more than three
years from the date of the commencement of the leave.

The workwoman shall not be entitled a paid normal vacation provided for in this rules if she had
made use of the maternity vacation in full pay in the same year, and shall be paid half payment if
she made use of maternity vacation with half pay.

Article 165

The workwoman shall be entitled, after her return from the maternity leave, in purpose to feed her
baby, intervals totaling to not more than an hour a day, in addition to other intervals granted for all.

Article 166

The employer shall bear the expenses of the medical examination, treatment and delivery.

Article 167

The employer may not terminate the workwoman during vacation period of pregnancy or maternity.

Article 168

The employer may not terminate the workwoman during the period of her illness resulting by
pregnancy or delivery, such illness shall be confirmed by certified medical certificate, provided that
it shall not exceed six months. She may not be terminated without a legal reason, such reason
provided in this law, during the immediate six months preceding the excepted date for delivery. If
the workwoman is terminated in violation of the rules of this article, the appropriate commission
shall order her reinstatement.

Article 169

The workwoman shall not be entitled her rights acquired by the provisions of this chapter if proved
that she had worked for another employer during her approved leave. The employer in this case
may deprive her vacation pay or recover from her amounts he paid for that regard.

Article 170

By way of exception, provisions that prohibit or restrict the employment of adolescents juvenile and
women shall not apply the charitable or official institutes with vocational character, provided that
nature of work, working hours, conditions, suitability for heath capability of workers shall be
determined and such rules shall be approved by the ministry after consulting the opinion of the
ministry of health.

Article 171

In all places of work and occupations, where women perform a work, seats shall be provided to
secure comfort to them.



                                                                                                     40
                                                                     LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA



CHAPTER 11 – LABOR COMMISSIONS AND SETTLEMENT OF DISPUTES

Article 172

Labor Commission and Settlement of disputes shall be:

1. Primary committees for settlement of disputes.

2. Supreme committees for settlement of disputes.

Article 173

The primary committees shall be formed in labor offices or branches according to the selections the
Minister of Labor.

The committee shall be composed of three members experienced in legal matters. At least, the
chairman and one of the other members shall be graduated in shur’ia.

Article 174

The primary committee shall be authorized to

First: Render final decision on:

1. Workers disputes that doesn’t exceed SR 3000.
2. Disputes relate to stay of execution raised according to the rules of this law.
3. Disputes relate to imposed fines or the application for exemption of the same.

Second: To render final decision on:

1. Worker’s disputes exceeding SR 3000.
2. Disputes relate to work injuries whatsoever its value is.
3. Disputes relate to dismiss.

Article 175

The supreme committee for settlement of disputes shall be constituted by decision of Council of
Ministers, of five members, three to represent Ministry of labor and social affairs, one to represent
the ministry of commerce and industry and one for the ministry of petroleum and minerals
resources.

The decision shall name one of the members as Chairman of the committee. The chairman and the
members of the committee shall be impartial and well experienced in legal matters.

Article 176

The supreme committee is exclusively authorized to render final decisions in all disputes raised
before it and to apply to violators the fines provided for in this law.

Article 177

The Council of Ministers shall issue the regulations of appeal and arbitration and conciliation before
the primary and supreme committees. The Minster of labor shall issue decision for the constitution



                                                                                                   41
                                                                      LABOR AND WORKMEN LAW
                                                                     OF THE KINGDOM OF SAUDI ARABIA


of an office for each committee and to indicate the number of clerks. Attendants, employees,
administrators assigned to perform such work.

Article 178

The supreme and the primary committees shall issue their decision by majority vote of their
members, such decision shall be justified and signed by all members, and who dissent shall
mention hi reasons for such dissention.

Article 179

The committee has the exclusive right to hear all disputes of contracts of work, and to present
persons for investigations, and it may request presentation of documents and evidences and to
take required procedure in that regard. The committee shall have the right to access any place
occupied by any establishment in order to perform investigations as required according to the
provisions of this law.

Article 180

Suits shall be raised to the primary committee. The committee shall issue its decision within the
period limits as per the rules of Article 177. If one of the parties wishes to appeal to the decision of
the primary committee, such party shall submit his application to the Supreme committee within
thirty days from date on which he received the notification about the decision.

Article 181

The chairmen of the committee shall date for hearing within fifteen days and the concerned
committee shall promptly issue its decision within not more than thirty days from the date of the first
hearing.

Article 182

If the decision of the primary committee is not appealed to within the limited period as provided in
Article 180, it shall become final and must be executed. The decisions of the supreme committee
shall be executed immediately after being notified to the concerned parties and the dispute parties
shall be obliged to execute the conciliation decision once it is registered to one of the authorized
committees.

Article 183

In all cases the dispute parties shall have the right to appoint in agreement one arbitrator for each
party or one or more arbitrator for each party to rule the dispute in lieu of the committee provided
for in this chapter.

If agreement is not reached in selecting an umpire, the chairm an of the primary committee shall
appoint the said umpire if not already appointed through the decision document. Time limits and
rules to be followed in such procedures shall be mentioned.

The agreement of arbitrators shall be an instance decision and appealable before the supreme
committee within the periods and rules provided for the appeal before such committee, unless
otherwise stated clearly in the decision of the arbitrators, then theirs shall be concluded. Copy of
the decision document shall be filed to the primary committee within a week form date of issuance.

Article 184


                                                                                                     42
                                                                   LABOR AND WORKMEN LAW
                                                                  OF THE KINGDOM OF SAUDI ARABIA




The agreements reached by the arbitrators shall be executed after being registered to the
appropriate primary committee after approval of the chairman of it.

Article 185

The committees provided in this chapter shall not abstain issuing their decision on the grounds that
there is no applicable text, and it must in such cases implement the principles of Islamic rules,
established judicial procedures, usage and rules of right and equity.

Article 186

Any of the parties may not raise again the dispute of which a decision was issued by one of the
committees provided in this chapter.

Article 187

The employer may not change the terms of the contract during the procedures of the conciliation or
arbitration, or impose penalty on him or dismiss him without a written permission issued by the
appropriate committee.

Article 188

If the primary committee is not constituted in a given area, the minister may assign its tasks and
duties to the nearest constituted committee.

CHAPTER 12 - PENALTIES

Article 189

1. Any person who forms a league with a group of other persons in purpose to stopping:

    a. Means of transportation between the towns of the kingdom or between the kingdom and
    other countries.

    b.   Postal or telegrams or telephone communication.

    c.   Any of public establishment, especially those concerned with distribution of water,
         electricity or principal food stuff.

    Shall be punished with imprisonment for a term of one month to one year or a fine of SR 1000
    to SR3000 or with both penalties.

2. The same punishment shall apply to any of the concessionaire of the above-mentioned
   establishment who stops operating such services without a valid reason.

3. If the crime accompanied by violence act upon others or by threatening or by other means of or
   by measure of deceit or by false affecting mind, or by gathering in public roads, or by occupying
   places of work, such offenders shall be punished with imprisonment for a term of six months to
   two years or with fine of SR 1000 to SR 5000 or both.

Article 190




                                                                                                 43
                                                                     LABOR AND WORKMEN LAW
                                                                   OF THE KINGDOM OF SAUDI ARABIA


Whoever by using one of the means mentioned in the last paragraph of the previous article causes
or attempts to cause in agreement among themselves or encourages them or attempts to
encourage them to stop the work shall be punished with imprisonment for the term of one year to
three years or with fine of SR 5000 to SR 10000 or both.

Article 191

If the employer or the head of the enterprise stops the work in order to put pressure on the local
authorities or protesting against a decision or orders issued by such authorities instead of seeking
legal measures, shall be punished with imprisonment for the term of two years to six years or with
fine of SR 4000 to SR 10000 or both.

Article 192

Without prejudicing the rules of other laws and regulations provided to who may prevent an official
from discharging his legal duties, whoever violated the provision of Article 26 of this law shall be
punished with a fine of SR100000 and shall be doubled if the offense is repeated.

Article 193

Whoever violates the provisions of Article 41 of this law shall be punished with a fine not less than
SR 500 and not more than SR 1000.

Article 194

Whoever violates the provisions of Article 44 of this law shall be punished with a fine not less than
SR 500 and not more than SR 1000.

Article 195

Whoever violates the provisions of Article 44 of this law shall be punished with a fine not less than
SR 500 and not more than SR1000.

Article 196
Whoever violates the rules provided in Article 49 of this law that govern bringing foreigners into the
country in purpose of employment shall be punished with a fine not less than SR 500 and not more
than SR 1000.

Article 197

Whoever violates the rules relate to vocational training of Saudis in order to replace them with
foreigners, provided for in Article 50 of this law shall be punished with a fine not less than SR 500
and not more than SR 1000 for each worker.

Article 198

Whoever violates the rules of chapter five of this law shall be punished with a fine not less than SR
500 and not more than SR1000.

Article 199

Whoever violates the rules of wages provided for in Article 116 of this law shall be punished with a
fine of SR200 for each worker and shall be ordered to recover differences for all.



                                                                                                   44
                                                                      LABOR AND WORKMEN LAW
                                                                    OF THE KINGDOM OF SAUDI ARABIA


Article 200

The employer or any responsible who violates any of the provisions of chapter six shall be
punished with a fine of SR200 for each worker.

Article 201

The employer or any responsible who violates any of the provisions of chapter seven or any other
regulations or decisions or orders shall be punished with a fine not less than SR500 and not more
than SR 1000 for each offense.

Article 202

Whoever violates any of the rules of chapter eight shall be punished with a fine of SR 1000 or with
shutting down the establishment or stopping the new constructions.

The appropriate labor office shall seek the assistance of the administrative authorities in of
executing such decisions.

Article 203

The employer or the manager of the establishment who violates any of the provisions of chapter
nine or any other regulations or orders shall be punished with a fine not less than SR 500 and not
more than SR1000 for each offense.

Article 204

If the employer violates any of the provisions of chapter ten shall be punished with a fine not less
than SR 500 and not more than SR1000 for each offense.

Article 205

Any employer or a head of enterprise or a worker who refuses or delays a decision of arbitration
committee, or any other decision issued by one of the committees provided for in chapter eleven of
this law, the punishment that imposed on him, if any, shall be doubled, or he shall be punished with
a fine not less than SR 500 and not more than SR1000 or with imprisonment for a term not more
than three months or both.

Article 206

In consideration of the provisions of Article 78 of this law, any worker who refuses in cases of
necessity to work in elsewhere than the original place of his residence or to perform a work different
than the work provided in the contract shall be punished with fine not more than SR100.

Article 207

The employer or the responsible manager shall be punished for any violations in regard of any of
the provisions, rules, orders or decision of this law, where penalty is not provided, with a fine of not
less than SR100 and not more than SR500.

The provisions of this law shall apply unless severe penalties are provided in other regulations. All
fines shall be deposited in worker’s social insurance fund in special account in order to be spent on
the projects set for upgrading of workers standards in the Kingdom and according to the decisions
of the Minster of Labor.


                                                                                                     45
                                                                         LABOR AND WORKMEN LAW
                                                                        OF THE KINGDOM OF SAUDI ARABIA




Article 208

Demotion may not apply to the worker’s class nor his wage shall be decreased except in cases
where provided for in this law or the related decisions.

CHAPTER 13 – CONCLUDING PROVISIONS

Article 209

The Minister of Labor shall issue decisions and regulations required for the implementation of this
law except where other authority has been designated for such a purpose.

Article 210

The labor and workers law issued on 25/11/1366H as well as all regulations and orders and
decisions in effect prior to the coming into force of this law are hereby replaced in so far as they are
not in contradiction with the provisions of this law.

Article 211

This law shall be effective as of the date of its publication in the official gazette.




                                                                                                     46

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:47
posted:12/30/2010
language:English
pages:46