{"id":898,"date":"2023-07-31T13:08:49","date_gmt":"2023-07-31T13:08:49","guid":{"rendered":"https:\/\/www.smasco.com\/en\/?p=898"},"modified":"2024-09-12T07:02:24","modified_gmt":"2024-09-12T07:02:24","slug":"saudi-labor-law-for-expatriates","status":"publish","type":"post","link":"https:\/\/www.smasco.com\/en\/saudi-labor-law-for-expatriates\/","title":{"rendered":"Complete Guide:Saudi Labor Law for Expatriates&amp;Penalty Table"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Considering the diversity of nationalities employed in Saudi Arabia, as well as the unique transformational economy and social reform blueprint that is opening Saudi Arabia up to the global market, there was a critical need for a solid foundation of human resources from different countries and with different specialties, in order to launch the ambitious vision. As a result, Saudi Labor Law regulations for expatriates were instituted.<\/p>\n\n\n\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:46px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Saudi labor law for expatriates: Recruitment terms<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.smasco.com\/en\/advantages-of-external-recruitment\/\" data-type=\"post\" data-id=\"959\" target=\"_blank\" rel=\"noreferrer noopener\">Recruitment of an expatriate employee <\/a>can only take place via an approval of the Ministry.<\/li>\n\n\n\n<li>A non-Saudi isn\u2019t allowed to engage in any work only after obtaining a work permit from the Ministry. The conditions for granting the permit are as follows:&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>1. <\/strong>The worker has lawfully entered the country and is authorized to work.&nbsp;<\/p>\n\n\n\n<p><strong>2.<\/strong> The worker possesses the professional or academic qualifications that the country needs and which are not possessed by citizens or the available number of such citizens is insufficient to meet the needs, or that he belongs to the class of ordinary workers that the country needs.<\/p>\n\n\n\n<p><strong>3. <\/strong>The worker has a contract with an employer and is under his responsibility.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The employment contract for non-Saudis shall be written and of a fixed term. If the contract does not specify the duration, the duration of the work permit shall be deemed the duration of the contract.&nbsp;<\/li>\n\n\n\n<li>An employer may not employ a worker in a profession other than the one specified in his work permit.&nbsp;<\/li>\n\n\n\n<li>A worker is prohibited from engaging in a profession other than his before taking the legal measures necessary to change his profession.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Unless he has followed the stipulated legal rules and procedures, an employer may not allow his worker to work for others, and a worker may not work for other employers. Similarly, an employer may not employ the workers of other employers.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An employer may not allow a worker to work for his own account and a worker may not work for his own account.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:52px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><strong>Rights and <strong>duties<\/strong>: Employer and employee<\/strong><\/p>\n\n\n\n<p>1. An employer shall bear the fees for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pertaining to the <a href=\"https:\/\/www.smasco.com\/en\/know-the-terms-for-hiring-non-saudis\/\" data-type=\"post\" data-id=\"905\" target=\"_blank\" rel=\"noreferrer noopener\">recruitment of non-Saudi workers<\/a>.<\/li>\n\n\n\n<li>Issuing and renewing residence permit (Iqama) and work permit.<\/li>\n\n\n\n<li>Fines resulting from their delay.<\/li>\n\n\n\n<li>Fees pertaining to change of profession.<\/li>\n\n\n\n<li>Exit and re-entry visas.<\/li>\n\n\n\n<li>The return tickets to the worker\u2019s home country at the end of the relation between the two parties.&nbsp;<\/li>\n\n\n\n<li>The fees of transferring the services of a worker who wishes to transfer his service to him.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>2. A worker shall bear the costs of returning to his home country if he is unfit for work or if he wishes to return to his home country without a legitimate reason.&nbsp;<\/p>\n\n\n\n<p>3. An employer shall be responsible for the cost of preparing the body of a deceased worker and transporting it to the location where the contract was concluded, or where the worker was recruited unless the worker is interred in the Kingdom with the approval of his family. The employer shall be relieved if the General Organization for Social Insurance (GOSI) undertakes the same.&nbsp;<\/p>\n\n\n\n<div style=\"height:46px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">A table of Top 10 Penalties for Employer Violations of <a href=\"https:\/\/www.smasco.com\/en\/saudi-labor-law-for-expatriates\/\" data-type=\"post\" data-id=\"898\" target=\"_blank\" rel=\"noreferrer noopener\">Saudi Labor Law with Expatriate<\/a> Employees<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>No.<\/td><td><strong>Description of Violation<\/strong><\/td><td><strong>Category (A)Establishment having<\/strong><strong> 51 workers or more<\/strong><\/td><td>Keep the worker&#8217;s passport or residence permit for the worker and his family members<\/td><td><strong>Category (B)Establishment having<\/strong><strong> 1 \u2013 50 workers<\/strong><\/td><\/tr><tr><td><strong>1<\/strong><\/td><td>Selling work visas or Mediating the sale of work visas<\/td><td>20,000Per each visa<\/td><td>20,000Per each visa<\/td><td>20,000Per each visa<\/td><\/tr><tr><td><strong>2<\/strong><\/td><td>The employer employs non-Saudiworker without obtaining any work permit or Ajeer Notification<\/td><td>10,000Per one worker<\/td><td>20,000Per one worker<\/td><td>20,000Per one worker<\/td><\/tr><tr><td><strong>3<\/strong><\/td><td>Keep the worker&#8217;s passport or residence permit for the worker and his family members<\/td><td>2,500Per one worker<\/td><td>5,000Per one worker<\/td><td>10,000Per one worker<\/td><\/tr><tr><td><strong>4<\/strong><\/td><td>The establishment\u2019s non-compliance with the legally prescribed vacations for workers<\/td><td>5,000Per one worker<\/td><td>5,000Per one worker<\/td><td>5,000Per one worker<\/td><\/tr><tr><td><strong>5<\/strong><\/td><td>The employer&#8217;s non-compliance with paying fees or costs, and charging them to the worker<\/td><td>10,000Per one worker<\/td><td>10,000Per one worker<\/td><td>10,000Per one worker<\/td><\/tr><tr><td><strong>6<\/strong><\/td><td>Non-payment of workers\u2019 wages and dues in the official currency of the country on its due times into their approved bank accounts, or withholding the worker&#8217;s wages or part of them without a judicial basis<\/td><td>2,000Per one worker<\/td><td>3,000Per one worker<\/td><td>5,000Per one worker<\/td><\/tr><tr><td><strong>7<\/strong><\/td><td>The employer enables the worker to work in another job, such as listed in the work permit or employment contract<\/td><td>5,000<\/td><td>10,000<\/td><td>15,000<\/td><\/tr><tr><td><strong>8<\/strong><\/td><td>The establishment\u2019s non-compliance with the legally prescribed vacations for workers<\/td><td>5,000Per one worker<\/td><td>5,000Per one worker<\/td><td>5,000Per one worker<\/td><\/tr><tr><td><strong>9<\/strong><\/td><td>The establishment\u2019s non- compliance with the legally prescribed vacations for workers<\/td><td>5,000Per one worker<\/td><td>5,000Per one worker<\/td><td>5,000Per one worker<\/td><\/tr><tr><td><strong>10<\/strong><\/td><td>The employer\u2019s failure to register the workers in the remote work system in the relevant porta<\/td><td>1,000Per one worker<\/td><td>1,000Per one worker<\/td><td>1,000Per one worker<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Download the complete table of penalties for violating Saudi labor law. <\/strong><a href=\"https:\/\/www.hrsd.gov.sa\/en\/knowledge-centre\/decisions-and-regulations\/ministerial-decisions\/968443\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><strong>Here<\/strong><\/a><\/h4>\n\n\n\n<p><\/p>\n\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\">3 significant updates on Saudi labor law for expatriates:<\/h4>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Decision for the Ministry of Human Resources and Social Development to manage the contractual relationship between the establishment and the worker (Saudi\/ Expatriate) 75506<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Establishments shall authenticate the contracts of their workers via the Qiwa Platform, from registering the contract and updating the details of professions, wages, and qualifications to the end or termination of the contractual relationship.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li><strong>Establishments shall register their employees to the Wages Protection System, QIWA, and MUDAD.<\/strong><\/li>\n<\/ol>\n\n\n\n<p><strong>The WPS<\/strong> is an electronic system used in Saudi Arabia to create a database of salary payments of workers in the private sector. Private sector companies must register on the WPS regardless of their size.<\/p>\n\n\n\n<p>To facilitate that purpose, the government introduced the <strong>Mudad <\/strong>system, a digital platform to assist with wage payment compliance and regulation. Mudad makes the transferring of salaries easy through a direct link with the banks and automatic uploading of wage information to the WPS.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"3\">\n<li><strong>Expats can freely switch employers. <\/strong>Aiming to increase employee mobility, an amendment to <a href=\"https:\/\/www.smasco.com\/en\/saudi-labor-law-2024-localization-ratios-phase-ii\/\" data-type=\"post\" data-id=\"1248\" target=\"_blank\" rel=\"noreferrer noopener\">Saudi labor law<\/a> for expatriates 2021 which took effect on 14 March, allowed foreign employees to leave their jobs without the consent of the employer upon the ex\u00adpi\u00adra\u00adtion of their employment contracts. They can leave their jobs prior to the expiration of the employment contract as long as the employee has been in the country for at least a year and has given 90 days\u2019 notice to the employer.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>In certain cases, foreign workers are allowed to change their jobs within the first year of employment. Besides, employees are now entitled to apply for and obtain exit\/re-entry permits and the final exit permit by themselves without having to obtain permission from their employer.&nbsp;<\/p>\n\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h5 class=\"wp-block-heading\">Your Expert Partner for Labor Law Compliance &amp; Workforce Solutions<\/h5>\n\n\n\n<p>Every small and middle business may need the assistance of a specialist partner to get the most benefits of the labor law and avoid violations. Now <a href=\"https:\/\/www.smasco.com\/en\/\" data-type=\"link\" data-id=\"https:\/\/www.smasco.com\/en\" target=\"_blank\" rel=\"noreferrer noopener\">SMASCO<\/a> introduces its new service Rowad, to provide your business with the required workforce, and help you understand the Saudi labor law for expatriates 2021. Download the Rowad app. <a href=\"https:\/\/rowadapp.sa\/\" target=\"_blank\" rel=\"noreferrer noopener\">Here<\/a><\/p>\n\n\n\n<h1 class=\"wp-block-heading\">&nbsp;<\/h1>\n\n\n\n<p><strong>Sources<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Decision for the Ministry of Human Resources and Social Development to manage the contractual relationship between the establishment and the worker (Saudi\/ Expatriate) <a href=\"https:\/\/www.hrsd.gov.sa\/en\/knowledge-centre\/decisions-and-regulations\/ministerial-decisions\/1171581\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">75506<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/laws.boe.gov.sa\/BoeLaws\/Laws\/LawDetails\/08381293-6388-48e2-8ad2-a9a700f2aa94\/1#:~:text=%D9%85%D8%B1%D8%B3%D9%88%D9%85%20%D9%85%D9%84%D9%83%D9%8A%20%D8%B1%D9%82%D9%85%20%D9%85%2F51%20%D8%A8%D8%AA%D8%A7%D8%B1%D9%8A%D8%AE%2023%20%2F%208%20%2F%201426,-%D8%A8%D8%B9%D9%88%D9%86%20%D8%A7%D9%84%D9%84%D9%87%20%D8%AA%D8%B9%D8%A7%D9%84%D9%89&amp;text=%D8%A8%D9%86%D8%A7%D8%A1%20%D8%B9%D9%84%D9%89%20%D8%A7%D9%84%D9%85%D8%A7%D8%AF%D8%A9%20(%D8%A7%D9%84%D8%B3%D8%A8%D8%B9%D9%8A%D9%86)%20%D9%85%D9%86,%D9%88%D8%AA%D8%A7%D8%B1%D9%8A%D8%AE%20%D9%A3%2F%20%D9%A3%2F%20%D9%A1%D9%A4%D9%A1%D9%A4%D9%87%D9%80.\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Labor Law<\/a>, Bureau of Experts at The Council of Ministers, Kingdom of Saudi Arabia.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.hrsd.gov.sa\/en\/knowledge-centre\/decisions-and-regulations\/ministerial-decisions\/968443\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Decision table of violations and cor<\/a>responding penalties 92768, Publication date: 13 February 2023 &#8211; 22 Rajab 1444, Ministry of Human Resources and Social Development of Saudi Arabia.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.roedl.com\/insights\/saudi-arabia-labour-law-employee-contract#:~:text=The%20Saudi%20labor%20reforms%20(Resolution,expiration%20of%20their%20employment%20contracts.\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Saudi Arabia: Labour Law<\/a>, 14 December 2022 R\u00f6dl &amp; Partner.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.joinhrmatters.com\/blog\/mudad-payroll-management-system\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">What is a Mudad Payroll Management System? 10 Best Facts How it Works?<\/a> March 22, 2023, HRmatters.<\/li>\n\n\n\n<li>Qiwa.sa\/en\/qiwa.<\/li>\n\n\n\n<li><a href=\"https:\/\/mudad.com.sa\/landing-page\/compliance\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Mudad.com.sa<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.mo-hr.com\/en\/Specifications\/SaudiGovCompliance\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Saudi Government Compliance<\/a>, <a href=\"http:\/\/blog.mo-hr.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">MOHR AR-Blog<\/a>.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Considering the diversity of nationalities employed in Saudi Arabia, as well as the unique transformational economy and social reform blueprint that is opening Saudi Arabia up to the global market, there was a critical need for a solid foundation of human resources from different countries and with different specialties, in order to launch the ambitious [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":975,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Your Guide to Saudi Labor Law for Expatriates\u00a0","_seopress_titles_desc":"Your Guide to Saudi Labor Law for Expatriates. Understand your rights and obligations as an expatriate worker in KSA with comprehensive information on labor law","_seopress_robots_index":"","_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[23],"tags":[],"class_list":["post-898","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/posts\/898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/comments?post=898"}],"version-history":[{"count":17,"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/posts\/898\/revisions"}],"predecessor-version":[{"id":1990,"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/posts\/898\/revisions\/1990"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/media\/975"}],"wp:attachment":[{"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/media?parent=898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/categories?post=898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smasco.com\/en\/wp-json\/wp\/v2\/tags?post=898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}