Littler Global Guide - Saudi Arabia - Q2 2020

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q2 2020 Global Guide Quarterly updates   Download full Q2 2020 Global Guide Quarterly

Part-Time and Flexible Work Arrangements

New Legislation Enacted

Authors: Sara Khoja, Partner and Sarit Thomas, Attorney-at-Law – Clyde & Co.

In May 2020, Ministerial Resolution 142906 of 13/8/1441H amended the Labor Law regulations, which now allows for part-time flexible work arrangements on various grounds, including: (i) part-time employees can work for more than one employer on an hourly basis (with some conditions); (ii) only Saudi nationals may work in this way on an hourly basis; (iii) the Ministry will specify which sectors can take hourly employees in this manner; (iv) Labor Law provisions on leave (including annual leave, sick leave, public holidays) will not apply to hourly paid employees; (v) no end of service gratuity payable; (vi) no probation will apply; (vii) GOSI contributions will apply according to GOSI rules; (viii) the employee will count towards a third of a point in Nitiqat provided the employee works 168 hours – Nitiqat rules apply; (ix) pay should be paid each month or as agreed between the parties; (x) employees shall not work more than 95 hours per month with one employer; (xi) the employee has the right to refuse to work without a penalty. The regulations establish specific requirements for the contracts. Flexible work service providers must be certified based on the standards published by the Ministry. Any disputes pertaining to part-time or flexible work arrangements will be heard by the Labor Courts.

Ministerial Resolution Amends Labor Law Regulation, Due to COVID-19

New Regulation or Official Guidance

Authors: Sara Khoja, Partner and Sarit Thomas, Attorney-at-Law – Clyde & Co.

To address the impact of the COVID-19 pandemic, on April 6, 2020, Ministerial Resolution 142906 of 13/8/1441H amended the Labor Law regulations by adding a new clause 41, allowing employers to implement various measures due to force majeure, including reducing employees’ salary and/or working hours, and placing employees on annual leave or unpaid leave. Terminations will not be justified, however, if the employer received government assistance (i.e., furlough programs). The Ministry of Human Resources and Social Development (MHRSD) has since issued guidance on the limits for implementing such measures. As an example, a salary reduction cannot exceed 40% of the employee’s full salary. The MHRSD may impose a regulatory fine of SAR 10,000 per case, for noncompliance.

Return to Work Guidelines

New Regulation or Official Guidance

Authors: Sara Khoja, Partner and Sarit Thomas, Attorney-at-Law – Clyde & Co.

The Ministry of Human Resources and Social Development issued guidelines at the end of May 2020 for those wishing to return to work. Under the guidelines, prior to returning to work, employers are required to evaluate the health risks using the MHRSD “Mawid” application and implement various protocols for face coverings, temperature screening, daily sanitizing of the workplace, entry and exit into the premises, transport, areas for isolation, amongst other protocols. Employees in high-risk categories are to work from home, flexible working hours must be applied, and digital meetings are encouraged. If a person tests positive for the virus, the health ministry must be informed. Employers are also required to train their employees on return to work expectations.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.