Saudi Labour Law Updates Q4 2022

Any business that operates or aspires to operate in Saudi Arabia must stay up to date with Saudi labour laws and regulations. The laws have undergone numerous changes to support the Kingdom's efforts and objectives. The main goals are to achieve the Kingdom’s Vision 2030 and the National Transformation Program to create a vibrant community and a distinctive work environment for an attractive labour market. 

Through the creation of policies and regulations, the Ministry of Human Resources and Social Development plays a significant role in empowering individuals, society, and institutions, fostering social responsibility, and advancing the labour market.

This article will take you through the latest legal updates and legislative policies that were announced by the Ministry of Human Resources and Social Development in the last quarter of 2022.

New rules for private sector worker absences

As part of the Ministry of Human Resource and Social Development’s efforts to improve the contractual relationship between workers and employers. The ministry updated regulations governing worker absences in private sector establishments as follows:

After the employer submits a request to terminate the contractual relationship due to the worker’s interruption of work, the data of the expatriate worker will cease to be linked to that facility, and his status will be (discontinued from work) in the Ministry’s systems. The current employer does not bear any remuneration for the worker.

To the worker, if the specified period of absenteeism expires, i.e. (60) days, without the worker taking any of the two options (transferring services or requesting a final exit visa), the worker, in this case, is considered absent from work according to the regulations. The employer shall not be liable for the worker’s violations during that period.

35% localization of consultancy professions

In October, the Ministry of Human Resource and Social Development issued a decision to localize 35% of consultancy professions. In the second phase, the ministry aims to increase the percentage to 40%.

The decision targets all professions in the sector, such as financial advisory specialists, business advisers, project management managers, and project management engineers.

HRSD raises the percentage of compliance with the wage protection system

The Ministry of Human Resource and Social Development raises the percentage of establishment commitment to wage protection system to 90% for establishments whose employment ranges from (1-29) workers and 95% for establishments whose employment ranges from (30 or more).

In the past, the compliance rate was 40% for establishments whose employment ranges between (1-9) workers and 50% for establishments that range between (10-29) workers.

The employer is still able to justify the violation for 30 days from the date of its issuance. The worker can respond to the employer’s justification for a period of 7 days from the date of being notified of the justification. And when the worker does not respond to the employer’s justification with acceptance or rejection, the system will automatically process the pending justifications.

Draft Ministerial Decision for Vacancies   Job Interviews

The Ministry of Human Resources and Social Development issued a draft ministerial decision for the system to announce job vacancies and conduct interviews.

Regulations for announcing job vacancies:

1. A clear job description for the vacancy and the requirements for applying for the job: job title, job duties, minimum educational qualification, skills and years of experience required for the job.
2. A clear overview of the establishment, including (establishment name, activity, headquarters, and work location)
3. Work mode (in office, remote, temporary, part-time)
4. Determine the period of application for the job vacancy (date of opening and closing the job advertisement)
5. Never determine any discrimination in the job advertisement, such as discrimination based on gender, disability, age, marital status, or any other form of discrimination.

Regulations for conducting job interviews:

1. The location of the interview should be appropriate to the spatial requirements contained in the unified regulation of the work environment issued by Ministerial Resolution No. (4906) dated 01/08/1442 AH.
2. Forming a job interview committee.
3. If the applicant is a person with a disability, appropriate means of communication must be provided according to his disability, such as the presence of a sign language interpreter for those who suffer from hearing or speech impairment.
4. Notifying the applicant of the language, time and expected time of the interview, before the appointment, by a period of not less than three working days.
5. Not to ask personal questions related to sect, politics, race, and the like, during the interview.

Let TASC Streamline Your HR Recruitment and Payroll Process

While our regular updates will keep you up to date with the latest developments in Saudi Arabia’s labour and payroll regulations, you should 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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