Top workplace issues
The Kingdom of Saudi Arabia introduces new work visa
Corporate & Advisory - People Challenges
Many employers will have company policies and procedures to supplement their employment contracts and to instruct employees on the ‘dos’ and ‘don’ts’ of the workplace. In the Kingdom of Saudi Arabia (KSA), the use of company policies, needs to be balanced with the requirement to use the Unified Work Regulations issued by the Ministry of Human Resources and Social Development (MHRSD).
According to Article 13 of the Saudi Labour Law, Royal Decree No. M/51 23 Sha'ban 1426 issued on 27 September 2005 (as amended) “Saudi Labour Law", every company operating in KSA is required to have an internal work regulation that outlines the rights and obligations of both employees and the company. This regulation must be submitted and approved by the MHRSD before implementation and should be based on the template published by it.
The purpose of the internal work regulation is to establish a clear framework for employment relations, which helps to minimise disputes between employers and employees. This regulation includes policies and procedures related to work hours, leave, compensation, benefits, and disciplinary actions.
It is important to note that the internal work regulation must be drafted in Arabic and comply with the provisions of the Saudi Labour Law. Additionally, the submission of the regulation must be done through a law firm licensed in KSA. Clyde & Co is a registered firm that provides this service and is the only international law firm on the MHRSD list.
The regulation will be reviewed by the Law Firm and the MHRSD. Once approved, the regulation must be posted in a prominent location within the workplace, and all employees must be provided with a copy.
Employers must ensure that their employees are familiar with the contents of the internal work regulation. This can be achieved through regular training sessions or by making the regulation available online for easy access.
It is crucial to note that non-compliance with the internal work regulation can result in penalties and fines up to SAR 10,000. Employers must adhere to the provisions outlined in the regulation and ensure that all employees are treated fairly and in accordance with the Saudi Labour Law.
Many employers will wish to supplement these work regulations with additional policies on health and safety, possibly the use of social media and almost certainly in the context of a growing culture of regulatory compliance in the Kingdom, whistleblowing and compliance. It is important for them to consider how to reference such policies through the internal work regulations and how to cascade the policies with the work regulations through all levels of the workforce.
If you would like further information on how to draft and approve an internal work regulation, please contact us.