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Implementing Regulation of the Labor Law - 1440

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  • Ministerial Decision No. (70273) for the year 1440 AH

  • The Minister of Labor and Social Development,

  • Based on the powers vested in him by the law,

  • After reviewing the Labor Law issued by Royal Decree No. (M/51) dated 23/8/1426 AH, as amended by Royal Decree No. (M/24) dated 12/5/1434 AH, and further amended by Royal Decree No. (M/46) dated 5/6/1436 AH, and Ministerial Decision No. (221668) dated 26/11/1439 AH concerning the issuance of the Regulation of Rules for Practicing Recruitment Activity and Providing Labor Services, and after reviewing Ministerial Decision No. (84447) dated 27/4/1439 AH.

  • It is decided as follows:

  • First: The Implementing Regulation of the Labor Law and its annexes in the attached form are approved, and they shall replace the Implementing Regulation issued by Ministerial Decision No. (1982) dated 28/6/1437 AH and its amendments, and all that contradicts it is repealed.

  • Second: This regulation and its annexes shall be published in the Official Gazette and on the Ministry's website, and shall be effective from the date of publication.

  • Third: The Deputy Minister for Labor shall take the necessary measures to implement it.

  • And God is the Grantor of success

  • Minister of Labor and Social Development

Article (1)

  • In the implementation of the provisions of (Article Six) of the Law:

    • 1) If both parties continue in either the temporary Work Contract or the casual Work Contract for a period exceeding ninety days, the temporary Work Contract or the casual Work Contract shall be converted into a Work Contract subject to all provisions of the Labor Law, regardless of the name of the work visa under which the employee was brought - if they are a foreigner - and the duration of the residency granted to them under it.

    • 2) Labor courts are competent to consider disputes that may arise between the parties in both the casual Work Contract, the seasonal Work Contract, and the temporary Work Contract.

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Article 2

  • In the implementation of the provisions of subparagraph (d) of paragraph (1) of (Article Seven) of the Law, the term "agricultural workers and private herders and those in their category" refers to agricultural workers, or herders and those in their category who work for individuals in their homes, or on their private farms, or in the care of their private livestock; excluding establishments.

Article 3

  • In the implementation of the provisions of paragraph (1) of (Article Twelve) of the Law, the unified model for the Work Regulation is approved, in the form attached to this Regulation (Appurtenance No. 1).

Article 4

Previous Amendments
  • 1- In implementation of the provisions of paragraph (2) of (Article Twelve) and the provisions of paragraph (2) of (Article Thirteen), establishments must prepare a special work organization regulation. It is required that this regulation be reviewed and certified by the accredited law firms listed on the Ministry's website, so that the firm can ensure that it is free from any conflict with the provisions of the Labor Law, its executive regulations, and its annexes, as well as the decisions issued in implementation thereof. Subsequently, it must be submitted to the relevant authority at the Ministry according to the procedures it determines. Establishments with fewer than fifty employees may choose the unified model for the work organization regulation electronically without making any modifications or additions to it through the Ministry's website, and follow the required steps until it is approved, at which point an electronic certificate will be issued.

  • 2- Establishments that have previously had their own work organization regulation approved are exempt from preparing a new work organization regulation according to the unified model attached to this regulation, provided that all the articles contained therein comply with the Labor Law, this regulation, the unified model for the work organization regulation, and the decisions issued under it. However, if it contains articles that conflict with this, those articles shall be considered null and void, and the establishment must amend those articles to ensure compliance with the Labor Law, this regulation, the unified model for the work organization regulation, and the decisions issued under it, according to the procedures outlined above in paragraph (1-2) of this article.

Article 5

  • In implementing the provisions of (Article Seventeen) of the Law, the employer must include in the records, registers, and files maintained at the workplace, whether paper or electronic, the following data:

    • 1- List of Employee Names: Contains data on the names of the establishment's employees, their professions, ages, nationalities, identification numbers, work permit numbers for non-Saudis, and their dates.

    • 2- Employee Wage List: Contains data on employee wages, the dates they received them, any deductions from the wages, and the reason for the deduction.

    • 3- Fine Record: Contains a statement with the employee's name, the amount of their wage, the amount of the fine imposed on them, and the reason and date of its imposition.

    • 4- Attendance and Departure Record: Contains the time the employee arrives at work, the time they leave the workplace, and any other data the employer wishes to include.

    • 5- Record of Training for Saudis: Contains the name of the training program, its type, duration, year of training, and the number and names of the employees who were trained, along with their percentage of the total employees.

    • 6- Medical Examination Record for Employees in Establishments Suspected of Occupational Diseases: Contains a statement of the names of the employees who were examined, the date of the examination, and its results.

    • 7- Work File for Each Employee: Contains their data, address, a copy of the work contract, and any certificates or documents they provide to the employer.

Article 6

  • In implementing the provisions of (Article Twenty) of the Law, the employer is prohibited from retaining the passport of the non-Saudi employee, or their residence permit, or medical insurance card.

Article 7

  • In the implementation of the provisions of Articles (Twenty-Two, Twenty-Three, Twenty-Four, and Twenty-Five) of the Law, there shall be joint coordination between the Ministry and the Human Resources Development Fund to activate and support the employment units affiliated with the Fund in order to fulfill their role in employing national labor, qualifying and training them, and replacing them with expatriate workers.

Article 8

  • In implementing the provisions of paragraph (2) of Article Twenty-Six of the Law, the rates of localization that must be achieved by establishments are determined through programs established by the Ministry; through which the localization rates for each activity in the private sector are monitored, and all or some of the Ministry's services may be withheld from establishments that do not achieve the specified localization rate; such as the program to incentivize establishments to localize jobs (Nitaqat); provided that the Ministry updates these programs periodically as needed.

Article 9

Previous Amendments

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