Annex No. (4): Rules for Practicing Recruitment Activity and Providing Labor Services - 1442

Show Law Preamble
  • Decision of the Minister of Human Resources and Social Development No. (136241) dated 19/07/1442 AH

  • The Minister of Human Resources and Social Development

  • Based on the powers granted to him by law

  • And after reviewing the provisions ofArticle Eleven Bis of the Labor LawIssued by Royal Decree No. (M/51) dated 23/8/1426 AH, amended by Royal Decree No. (M/24) dated 12/5/1434 AH, amended by Royal Decree No. (M/1) dated 22/1/1435 AH, amended by Royal Decree No. (M/46) dated 5/6/1436 AH, amended by Royal Decree No. (M/14) dated 22/2/1440 AH, amended by Royal Decree No. (M/134) dated 27/11/1440 AH, amended by Royal Decree No. (M/5) dated 7/1/1442 AH, and after reviewingthe Implementing Regulation of the Labor LawIssued by Ministerial Decision No. (70273) dated 11/4/1440 AH, amended by Ministerial Decision No. 54908 dated 16/3/1441 AH, amended by Ministerial Decision No. (142906) dated 13/8/1441 AH, amended by Ministerial Decision No. (146481) dated 7/9/1441 AH, amended by Ministerial Decision No. (3485) dated 7/1/1442 AH.

  • Decides the following:

    • First: The amendment of Annex Four of the Implementing Regulation of the Labor Law (Rules for Practicing Recruitment Activity and Providing Labor Services) is approved to be in accordance with the attached text to this decision.

    • Second: Currently licensed companies are granted a transitional period until 1/3/2022 to comply with the provisions of these rules.

    • Third: Exceptionally from the provisions of Article Nine of the rules, recruitment offices wishing to amend their legal entity to a small domestic labor recruitment company are granted a transitional period until 31/12/2021, during which the office category can be changed to a recruitment company with the capital raised to one million riyals, provided that the company commits to raising the specified capital to two and a half million before 31/3/2022, and commits to fulfilling the full capital specified in the rules before 31/3/2023.

    • Fourth: This decision shall be published in the Official Gazette and on the Ministry's website and shall come into effect from the date of its publication.

    • Fifth: The Deputy Minister for Labor shall take the necessary measures to implement this decision.

  • Minister of Human Resources and Social Development

  • Eng. Ahmed bin Sulaiman Al-Rajhi

Chapter 1: Definitions and General Provisions

Article 1

  • The meanings of the following words and phrases - wherever they appear in these rules - are as defined below, unless the context of the text indicates otherwise.

  • Ministry: Ministry of Human Resources and Social Development.

  • Minister: Minister of Human Resources and Social Development.

  • Law: Labor Law.

  • Rules: Rules for practicing recruitment activities and providing labor services.

  • Licensee: Entities that have obtained a license from the Ministry to provide the activities specified in these rules.

  • Foreign Employee: A non-Saudi employee working in the public or private sector.

  • Domestic Labor: Domestic service workers and those in similar positions, of both genders.

  • Local Contracting: Utilizing labor services from male and female workers from within the Kingdom, from categories for which specific instructions have been issued to regulate their conditions for the benefit of employers.

  • Competent Agency: The agency responsible for the services provided to the licensees.

  • Employer: Any natural or legal person who contracts with the licensee to mediate the recruitment of one or more workers to employ them for a specified period in exchange for a wage.

  • Client: Any natural or legal person who contracts with the licensee to provide labor services for a specified period.

  • Company: The company licensed to practice the activities regulated by the provisions of these rules.

  • Foreign Investment Company: An establishment licensed by the Ministry of Investment for a foreign company licensed in the home country to engage in the activity of exporting labor, which has been licensed by the Ministry of Human Resources and Social Development to practice domestic labor recruitment and provide domestic labor services.

  • Local Contracting Company: The company licensed to provide labor services from categories for which specific instructions have been issued to regulate their conditions, in accordance with the provisions of these rules.

  • Office: The licensed recruitment office authorized to mediate in recruitment activities and any other related activities permitted by the Ministry.

  • Applicant: The person who applies to the Ministry for initial approval or a license to establish one of the entities specified in these rules.

  • Activity: The activity permitted for the licensee to practice in accordance with the licensed legal entity.

  • Initial Approval: The approval granted by the Ministry to the applicant to begin establishing one of the entities specified in these rules.

  • License: A license granted by the Ministry to the applicant after fulfilling the requirements specified in these rules and related regulations, authorizing them to practice the activities for which they have been licensed; in accordance with these rules.

  • Senior Management: The administrative positions represented by the President and members of the Board of Directors, the Managing Member, and the Chief Executive Officer, and any other positions defined by the competent agency.

Article 2

  • The purpose of these rules is to regulate the licensing for the practice of recruitment activities and the provision of labor services, as well as the supervisory and regulatory activities exercised by the Ministry over the licensees.

Article 3

  • These rules apply to any person licensed to engage in one or more of the recruitment activities specified in these rules or any other recruitment activity approved by the Ministry.

Chapter 2: Provisions of the License

Article 5

  • The Ministry specifies in the license the activity or activities that the licensee is permitted to engage in, and it may restrict the license with specific conditions that define the geographical area in which the licensed activities may be conducted. The licensee shall not engage in any activity that is not authorized or that conflicts with the conditions of the license.

Article 6

  • A person whose application has previously been rejected may not submit a new license application unless one year has passed from the date of the rejection.

Article 7

  • The ministry has the right to inquire about the applicant with governmental or private entities inside or outside the Kingdom to verify the accuracy of the submitted data and documents.

Next section title

Next section content