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.
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.
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.
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:
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.
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.
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.
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:
Employers must comply with these reporting requirements, as failing to do so may result in penalties being imposed by the government.
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:
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.
While our regular updates will keep you up to date with the latest developments in Saudi Arabia's labour and payroll regulations, you can contact our GRO and payroll specialists for assistance in setting up fully compliant payroll and HR functions.
Our local GRO specialists have an in-depth knowledge of Saudi labour laws and visa and licensing regulations which will streamline your interactions with the government – saving you time and effort and up to 60% of your usual GRO operating costs!
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