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Saudi Arabia – Ten interesting facts about Saudi employment law

16 October 2013

Navigating the employment laws of foreign countries can prove challenging and can be fraught with many potential pitfalls. A guide has been produced that provides a concise overview of the main points of Saudi Arabian employment law by XpertHR.

  • The government pursues a policy of ‘Saudisation’ to increase the share of Saudi Arabian citizens in employment
  • Women may work only in jobs ‘suitable to their nature’ and in cases where work does not interfere with their household and marital duties. Where women work, workplaces must generally be sex-segregated
  • All employers with at least 25 employees must, if the nature of the work allows, ensure that at least 4% of their employees are people with disabilities
  • There is no statutory minimum wage
  • There is no system of personal income tax
  • If an employer has more than 50 female employees, and these employees between them have at least 10 children under the age of six, the employer must provide adequately staffed childcare facilities for them
  • There are no specific laws on equal opportunities or non-discrimination in employment
  • The law, while not explicitly outlawing trade unions, does not specifically permit or recognise unions, and they do not exist in practice
  • Employees have a statutory entitlement to an ‘end-of-service award’ in many cases of termination of employment
  • The employer must, at the employee’s request, provide him or her at the end of employment with a ‘service certificate’ free of charge.

The guide provides a concise overview of the main points of Saudi Arabia employment law as it applies to: recruitment and selection; pay and benefits; employee rights; contracts of employment; training and development; equal opportunities; industrial relations; health and safety; and termination of employment.

To access XpertHR’s full guide, please click here.


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