Everything employers need to know in Saudi Arabia: Employer Rights & Duties

When hiring and managing staff, employers have a lot of information to take on board. Knowing their rights and duties under Saudi Labour Law is incredibly important. Not only does it ensure that companies are offering employees fair working conditions, but it also helps organizations avoid costly legal issues in the future. In this blog post, we'll go over the rights and responsibilities that employers have when it comes to recruiting and retaining employees in Saudi Arabia.

Article 11 – Employer Business Assignment and Joint Liability

As an employer in Saudi Arabia, it's essential to understand the laws and regulations surrounding the assignment of your business to another natural or corporate person. According to Article 11 of the Saudi Labour Law, if an employer assigns all or part of his original business to another person, the new employer must be given the same rights and privileges to the workers as the actual employer did.

This means that the new employer will be held to the same standards and responsibilities as the original employer regarding working conditions, wages, benefits, and other rights and privileges of the employees. Additionally, both the original and new employers will be jointly and severally liable for any legal obligations arising from the labour laws and work contracts.

In the case of multiple employers, they will be jointly and severally responsible for fulfilling the obligations arising from the labour laws and work contracts. This means that all the employers involved will be held accountable if there is a violation or non-compliance with the laws.

Article 13 – Approval and Implementation of Work Organization Regulation

As an employer in Saudi Arabia, it's essential to have a clear and well-organized work structure in place. One way to do this is by developing a work organisation regulation. This regulation outlines the roles and responsibilities of employees, the management structure, and other important information related to the running of the business.

According to the Saudi Labour Law, the Ministry of Human Resources and Social Development (MHRSD) has the power to approve and disapprove the work organisation regulation and any amendments made to it. The Ministry is required to approve the regulation within 60 days from the date of its submission. If the Ministry does not approve or object to the regulation within this timeframe, it is considered effective at the end of the period.

Once the regulation has been approved, the employer is responsible for announcing it to the employees. This can be done by displaying the regulation in a prominent location within the company or by any other means that ensures workers’ awareness of it. It is important to communicate the law effectively to ensure that all employees understand their roles and responsibilities and how they fit into the overall structure of the company.

Article 15 – Employer Notification Requirements

As an employer in Saudi Arabia, it's essential to know the notification requirements outlined in the labour laws. According to Article 15 of the Saudi Labour Law, employers are required to notify the competent labour office in writing upon the commencement of work in the firm. The notification must include the following information:

1. Name, type, and headquarters of the organization, its mailing address, and any other information that facilitates contact.
2. The line of organization for which the company is licensed includes the number of the Commercial Register or the license, its date, and issuing authority, along with the license copy.
3. The number of workers to be employed in the organization.
4. Name of the organization’s manager in charge.
5. Any other data required by the MHRSD.

Employers must comply with these requirements, as failure to do so may result in penalties imposed by the government. Employers should also ensure that the information provided is accurate and up to date.

Article 16 – Designation of Employer Representative and Notification Requirements

As an employer in Saudi Arabia, it's essential to understand the laws and regulations surrounding the designation of a representative at the workplace. According to Article 16 of the Saudi Labour Law, if an employer is unable to run the business in person, they must designate a representative at the workplace. In the case of multiple partners or managers in the business, one of them, from among those residing at the place of work, must be appointed to represent the employer and be liable for any violation of the labour laws.

The employer is also required to provide a written notice to the labour office with the name of the partner, and in case of replacement, the employer should inform the labour office of the name of the new partner or manager within 7 days of the date of the latter's assuming the job.

The person in charge of the business or the employer themselves will be regarded as the manager in charge of the firm if no management is selected to oversee it or if the appointed manager fails to carry out his or her obligations. However, it is essential to note that the employer is ultimately liable for ensuring compliance with labour laws in all cases.

Article 17 – Record Keeping And Display Requirements

As an employer in Saudi Arabia, it's essential to understand the laws and regulations surrounding record-keeping and display requirements. According to Article 17 of the Saudi Labour Law, employers are required to maintain records, statements, and files at the workplace, the nature, and contents of which will be specified in the regulations.

Additionally, employers are required to display a schedule of working hours, breaks, weekly rest days, and the time of start and end of each shift at a prominent location in the workplace when operating in shifts. This schedule must be easily visible and accessible to all employees.

Employers must comply with this record keeping and display requirements as failure to do so may result in penalties imposed by the government. Employers should also ensure that the information provided is accurate and up to date.

Maintaining accurate records and displaying the schedule of working hours, breaks, and rest days can help ensure compliance with labour laws and provide a clear framework for managing employee relations. It also helps to ensure that the employees know their rights and responsibilities regarding their working hours.

Article 25 – Reporting Requirements For Employers

According to Saudi Labor Law, employers are required to send specific information to the competent labour office on a regular basis.Specifically, employers must send the following information:

1. A list of vacant and new jobs, their types, locations, wages, and qualifications within 15 days of the job becoming vacant or being created.
2. A statement of measures taken to employ the citizens nominated by the employment unit within 7 days of receiving the letter of nomination.
3. A list of all the information required by the regulation, including names, occupations, salaries, nationalities, ages, and dates of non-Saudi workers' work permits.
4. A report on the status, conditions, and nature of work as well as the expected growth or decline in employment over the year after the report's publication date.
5. The statements specified in points 3 and 4 of this article must be sent every year during the month of Muharram.

Employers must comply with these reporting requirements, as failing to do so may result in penalties being imposed by the government.

Article 65 - Worker's Duties

As a worker in Saudi Arabia, it's essential to understand the laws and regulations surrounding your duties. According to Article 65 of the Saudi Labor Law, in addition to the duties provided for in the law, workers are required to:

• Perform their work in accordance with trade practice and employer's instructions.
• Take care of the employer's machinery, tools, supplies, and raw materials.
• Abide by proper conduct and ethical norms during work.
• Extend assistance and help in cases of disasters or hazards threatening the workplace.
• Undergo medical examinations when requested by the employer.
• Keep confidential the technical, trade, and industrial secrets of the products or which he directly or indirectly contributed to their production.

Additionally, it is essential to be aware of the limitations and instructions provided by the employer, as not following them may lead to a violation of the contract, the law, or public morality. It is also important to note that workers have a responsibility to maintain the employer's assets, return unused materials, and maintain the confidentiality of trade secrets to ensure the employer's interests are protected.

Overall, compliance with the duties outlined in the labour laws is essential to being an employee in Saudi Arabia. Workers should be aware of their responsibilities and ensure they comply with the laws to avoid any legal issues.

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