Labor Law and its Executive Regulation

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  • Royal Decree No. (M/51) dated 23/8/1426 AH

  •  

  • By the grace of God Almighty

  • We, Abdullah bin Abdul Aziz Al Saud

  • King of the Kingdom of Saudi Arabia

  • Based onArticle (Seventy) of the Basic Law of Governanceissued by Royal Order No. (A/90) dated 27/8/1412 AH.

  • And based onArticle (Twenty) of the Council of Ministers Lawissued by Royal Order No. (A/13) dated 3/3/1414 AH

  • And based onArticle (Eighteen) of the Shura Council Lawissued by Royal Order No. (A/91) dated 27/8/1412 AH.

  • After reviewing Shura Council Resolution No. (48/48) dated 29/10/1425 AH.

  • After reviewingCouncil of Ministers Resolution No. (219)dated 22/8/1426 AH.

  • We decree the following:

    • First: Approval of the Labor Law, in the attached form.

    • Second: His Highness the Deputy Prime Minister and the Ministers - each in his respective domain - shall implement this decree.

    • Abdullah bin Abdulaziz

  • Council of Ministers Resolution No. (219) dated 22/5/1426 AH

  • The Council of Ministers

    • After reviewing the correspondence received from the Diwan of the Council of Ministers under No. 56032/B dated 24/11/1425 AH, including the letter of His Excellency the Minister of Labor No. 58/S S dated 1/11/1420 AH, attached with the Labor Law.

    • After reviewingthe Labor and Workers Lawissued by Royal Decree No. (M/21) dated 6/9/1389 AH.

    • After reviewing the minutes No. (244) dated 24/5/1422 AH, No. (202) dated 27/5/1426 AH, and No. (259) dated 26/6/1426 AH, prepared by the Experts Authority.

    • After considering Shura Council Resolution No. (48/48) dated 29/10/1425 AH.

    • After reviewing the recommendation of the Working Committee of the Council of Ministers No. (390) dated 24/7/1426 AH.

    • It is decided

      • to approve the Labor Law, in the attached form.

      • A draft Royal Decree to that effect has been prepared, its text is attached hereto.

      • Prime Minister

Part 1: Definitions and General Provisions

Article 2

Previous Amendments
  • The following words and phrases - wherever they appear in this Law - shall have the meanings indicated next to them unless the context requires otherwise:

    • Ministry: Ministry of Human Resources and Social Development.

    • Minister: Minister of Human Resources and Social Development.

    • Labor Office: The Administrative Agency responsible for labor affairs in the territorial jurisdiction defined by a decision of the Minister.

    • Employer: Any natural or legal person who employs one or more Employees for a wage.

    • Employee: Any natural person - male or female - who works for the benefit of an Employer and under their management or supervision for a wage, even if they are outside of the Employer's direct oversight.

    • Juvenile: A person who has completed the age of fifteen but has not yet reached eighteen.

    • Work: The effort exerted in all human activities, in execution of a Work Contract (written or unwritten) regardless of its nature or type, whether industrial, commercial, agricultural, artistic, or otherwise, whether physical or mental.

    • Original Work: For individuals: the subject of their usual activity, and for establishments: the activities for which the establishment was created as stated in its founding contract or in the franchise agreement - if it is a franchise company - or in the Commercial Register.

    • Temporary Work: Work that, by its nature, is part of the activities carried out by the Employer and requires a specific duration for its completion, or pertains to a specific task and ends upon its completion, not exceeding ninety days in either case.

    • Incidental Work: Work that does not, by its nature, fall within the usual activities of the Employer and does not take more than ninety days to complete.

    • Seasonal Work: Work that occurs during recognized periodic seasons.

    • Part-time Work: Work performed by a non-full-time Employee for an Employer for hours less than half of the usual daily working hours at the establishment, whether this Employee works daily or on some days of the week.

    • Continuous Service: The uninterrupted service of the Employee with the same Employer or their legal successor, from the date of commencement of service, and service is considered continuous in the following cases:

      • 1- Statutory vacations and holidays.

      • 2- The period of interruption for taking exams as stipulated in this Law.

      • 3- Cases of the Employee's absence from work without pay that do not exceed twenty intermittent days during the work year.

    • Basic Wage: All that is given to the Employee in return for their work, under a written or unwritten Work Contract, regardless of the type of wage or method of payment, plus periodic allowances.

    • Actual Wage: The Basic Wage plus all other due increases determined for the Employee in return for efforts exerted in work, or risks faced in performing their work, or as determined for the Employee in accordance with the Work Contract or the Work Regulation. This includes:

      • 1- Commission, or a percentage of sales, or a percentage of profits, paid for what they market, produce, collect, or achieve in increased production or improvement.

      • 2- Allowances that the Employee is entitled to for efforts exerted, or risks faced in performing their work.

      • 3- Increases that may be granted according to the cost of living, or to meet family burdens.

      • 4- Grant or Reward: This is what the Employer gives to the Employee, and what is paid to them as a reward for their loyalty, or efficiency, or similar, if this grant or reward is stipulated in the Work Contract, or the Work Regulation of the establishment, or if it has become customary to grant it, to the extent that Employees consider it part of the wage and not a donation.

      • 5- In-kind Benefits: These are what the Employer is obligated to provide to the Employee in return for their work, as stated in the Work Contract or in the Work Regulation. They are valued at a maximum equivalent to the Basic Wage for two months for each year, unless specified in the Work Contract or Work Regulation at a higher amount.

    • Wage: Actual Wage.

    • Establishment: Any project managed by a natural or legal person, employing one or more Employees for any type of wage.

    • Month: Thirty days unless otherwise stated in the Work Contract or in the Work Regulation.

    • Regulation: The Implementing Regulation of this Law.

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Article 3

Previous Amendments
  • Work is a right for citizens; it may not be practiced by others except after meeting the conditions stipulated in this Law. Citizens are equal in the right to work without any discrimination based on gender, disability, age, or any other form of discrimination, whether during the performance of work or at the time of hiring or announcing it.

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Article 6

Incidental, seasonal, and temporary workers shall be subject to the provisions on duties and disciplinary rules, the maximum working hours, daily and weekly rest intervals, overtime work, official holidays, safety rules, occupational health, and work injuries and compensation therefore as well as whatever is decided by the Minister.

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