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Implementing Regulation of the Labor Law - 1437

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  • Ministerial Decision No. (1982) for the year 1437 AH

  • The Minister of Labor

  • After reviewingthe Labor Lawissued 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.

  • After reviewing Ministerial Decision No. (1/693) dated 29/2/1428 AH concerning the issuance of the Implementing Regulation of the Labor Law, and Ministerial Decision No. (1998/1/1) dated 29/6/1432 AH concerning the issuance of the Regulation of Recruitment Companies and the organization of recruiting foreign labor and providing labor services.

  • Based on the authorities vested in us.

  • It is decided as follows:

  • First: The Implementing Regulation of the Labor Law and its annexes in the attached form are approved, replacing the Implementing Regulation issued by Ministerial Decision No. (1998/1/1) dated 29/6/1436 AH, along with all amendments thereto, and all provisions that conflict with them are repealed.

  • Second: This regulation and its annexes shall be published in the Official Gazette and shall come into effect from the date of publication.

  • Third: The Deputy Minister shall take the necessary measures for its publication and notification.

  • And God is the Grantor of success...

  • Minister of Labor

  • Mufrej bin Saad Al-Huqbani

Article 1

In the implementation of the provisions of (Article Six) of the Law:
1) If the 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 in - if they are a foreigner - and the duration of the residency granted to them under it.
2) The Labor Dispute Settlement Committees are responsible for considering disputes that may arise between the parties in both the casual Work Contract, the seasonal Work Contract, and the temporary Work Contract - until the labor courts are established and commence their jurisdiction.

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 equivalent to them" refers to agricultural workers, or herders and those equivalent to them 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 implementation of the provisions of paragraph (1) of (Article Twelve) of the Law, the unified model for the Regulation of Labor Organization shall be adopted, in the form attached to this Regulation (Appurtenance No. 1).

Article 4

In implementation of the provisions of paragraph (2) of Article Twelve and the provisions of paragraph (2) of Article Thirteen of the Law, the Regulation for Organizing Work for the establishment shall be approved according to one of the following two procedures:
1- The establishment may choose the unified model for the Regulation for Organizing Work electronically, as a regulation for organizing the work of the establishment without making any modifications or additions to it, through the electronic portal of the Ministry, and follow the required steps until it is approved, and an electronic certificate is issued accordingly.
2- The establishment may include in the unified model for the Regulation for Organizing Work any additional terms and conditions, provided that they do not conflict with the provisions of the Labor Law and this regulation and the decisions issued in implementation thereof. This can be done through the electronic portal of the Ministry by entering the terms and conditions to be added to the electronic model of the regulation. The relevant department in the Ministry will then study those additional terms and conditions and provide its comments on them – if any – via the establishment's email, until a formula is reached that complies with the Labor Law, this regulation, and the decisions issued in implementation thereof; and then follow the steps that are approved and an electronic certificate is issued accordingly.

Article 5

In implementing the provisions of paragraph (1) of (Article Thirteen) of the Law; establishments that have previously approved a specific work regulation are exempt from preparing a new work regulation according to the unified model attached to this regulation, provided that all the articles contained therein comply with the Labor Law, this regulation, and the unified model for the work regulation.
However, if it includes articles that conflict with that, those articles shall be considered null and void, and the establishment – within a period not exceeding six months from the date of the enforcement of this regulation – must amend those articles to ensure compliance with the Labor Law, this regulation, and the unified model for the work regulation; and approve those amendments through the Ministry's electronic portal by entering the previously approved regulation with the new amendments specified, after which the relevant department at the Ministry will review those amendments and provide its comments – if any – via the establishment's email until a final version is reached that complies with the Labor Law, this regulation, and the unified model for the work regulation; then follow the steps until the amendments are approved and an electronic certificate is issued for that.
The establishment may choose the unified model as an alternative to the previous regulation; provided that none of the rights and privileges acquired by the employees included in the previous regulation are diminished; by adding them to the unified model.

Article 6

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. Employee Names List: 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 Wages List: Contains data on employee wages, the dates they received them, any deductions from the wages, and the reasons for the deductions.
3. Fines Record: Contains a statement with the employee's name, their wage amount, 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. Saudi Training Record: Contains the name of the training program, its type, duration, training year, 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 the results.
7. 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 7

In implementing the provisions of (Article Twenty) of the Law, the employer is prohibited from retaining the passport of the non-Saudi employee. In the event that the employee requests the employer to retain their passport, the employee must sign a written acknowledgment in Arabic and the employee's language; according to the model provided in the attached regulation (Appendix No. 2), which indicates the receipt of the employee's passport by the employer and the date of receipt.

Article 8

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 to perform their role in employing national labor, qualifying and training them, and replacing them with expatriate labor.
Law

Article 9

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 are 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 whenever the need arises.

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