Saudi Arabian Labour Laws have recently undergone strict reformations (Resolution No. 51848/1442) to ensure the wellbeing and fair treatment of all employees within the Kingdom. The reforms focus mostly on job mobility - migrant workers will have an easier time searching for, changing, and leaving their jobs
Labour Laws
- Employers must have the approval of the Ministry of Human Resources and Social 1 Development ("HRSD") to employ expatriates.
- The probation period waives the payment of compensation either party wishes to terminate the contract.
- Probation periods, if provided in the contract, are usually 90 days
- Saudi labour laws mandatel companies to reduce their employees working hours during the month of Ramadan.
- May be extended to 180 days if a written agreement from both parties is provided.
- It is the responsibility of the employer to provide residential accommodation or house rent allowance
- It is mandatory for employers to provide expatriate workers with health insurance
- Employees must be paid End of Service Benefits if they have completed two years
Saudization
Saudization is a policy that requires companies to employ a certain number of Saudi nationals. Each company must comply with a percentage of Saudi employees set by the Ministry Human Resources and Social Development. Not complying with Saudization requirements may result in government fines.
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