Littler Global Guide - Saudi Arabia - Q4 2019

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 Q4 2019 Global Guide Quarterly updates   Download full Q4 2019 Global Guide Quarterly

Protection Against Inappropriate Behavior or Abuse at Work

New Legislation Enacted

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

Ministerial Resolution No. 20912, dated 02/02/1441, approving the protection controls against inappropriate behavior at work applies to any type of behavioral abuse. The Resolution, which became effective on October 20, 2019, covers all establishments regulated by the Labor Law, including employees and employers, as well as acts of abuse occurring in the workplace, during or because of work, whether during or outside of working hours. Companies must implement preventative measures and set up a committee to investigate related claims and recommend appropriate discipline. The Committee, which must meet a set standard, must issue its recommendation within five working days of the complaint and the employer must formally notify the accused and complainant of the outcome of the investigation and sanction within five working days. Any disciplinary sanction must occur within 30 days of the completion of the investigation.

Key Amendments to Labor Law

New Legislation Enacted

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

Council of Ministers Resolution No. 684, dated 27/11/1440, AH, amending inter alias the Labor Law, introduced various key changes, including: (1) definition of “worker” to include every natural person, male or female, who undertakes work for the benefit of an employer; (2) anti-discrimination provisions, prohibiting employers from discriminating on the basis of sex, disability, age or any other forms of discrimination, whether during the employment, hiring, or advertising phase; (3) setting retirement age to follow the Social Insurance Law, unless the parties agree to continue working after such age; and (4) expanding maternity-related protections to female employees, during the employee’s pregnancy and while on maternity leave.

Cancellation of Yellow Band from Nitaqat Program

New Legislation Enacted

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

Through Ministerial Resolution No. 63717 of 1441/03/29, the Ministry of Labor and Social Development canceled the Yellow Band within the Nitaqat program, effective January 26, 2020. Any companies currently in the Yellow Band will automatically move to the Red Band and will be considered noncompliant until their ratings improve.

Saudization Percentages Set for Health and Safety Officers

New Legislation Enacted

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

The Minister of Labor and Social Development has set various Saudization percentages for health and safety officers in different industries. The ratios are set based on the activity undertaken by the company (for example: construction). Ministerial Resolution No. 76509, dated 15/4/1441, requires companies to be 50% compliant by January 1, 2021, and 70% compliant by January 1, 2022.

Suspension on Issuance of Work Visit Visas and Commercial Visit Visas

Important Action by Regulatory Agency

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

On October 24, 2019, KSA suspended the issuance of work visit visas (WVV) and commercial visit visas (CVV) for foreign nationals who currently are only able to obtain visit visas for business. The current visa, however, restricts the ability for such individual to work, a benefit that the previous WVV and CVV system generally permitted.

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.