Follow @muslimslaughterThe Labor and Workmen Law of the Kingdom has been approved by the Council of Ministers on his Decision No 745 dated 24 Sha’ban 1389 H. (4 November 1969) and issued under Royal Decree No. M/21 of 6 Ramadan 1389 H. (6 November 1969). Labor disputes are governed by this law. Under Article 2, the provisions of this Law shall apply to the following: ©Saudia-Online
- a- Any contract under which any person undertakes to work for the account of an employer under the latter's direction or control in consideration of wage.
- Contracts of Apprenticeship (industrial indentures).
- Workmen of the government, local authorities, charitable institutions, and public organizations.
Article 147 of the law states that "a workman shall not be employed for more than eight actual working hours in any one day, or forty-eight hours a week, in all months of the year, with the exception of the month of Ramadan when actual working hours shall not exceed six hours a day or thirty-six hours a week, exclusive of the intervals reserved for prayer, rest, and meals. The number of working hours maybe raised to nine hours a day in respect of certain categories of workmen or in certain industries and operations where the workman does not work continuously, such as seasonal establishments, hotel, snack bars, restaurants, etc. The number of daily working hours may be reduced for certain categories of workmen, industries, and operations referred to in this Article, these to be determined by decision of the Minister of Labor." Articles 148-159 (Chapter IX) of the said law deal with some other aspects of working hours and weekly holidays. ©Saudia-Online
Article 151 defines the wage for additional work hours to be the workman’s normal wage plus fifty percent. Article 153 stipulates that the workman who has completed one year in service of the employer shall be entitled to an annual vacation of fifteen days with full wages payable in advance. This vacation shall be increased to 21 days when the workman completes ten continuous years in service of the employer.
Chapter XI of the said law concerned with Labor Commissions and Settlement of Disputes. The Law States that the Labor and Settlement of Disputes Commissions shall be as follows:
- The Primary Commissions for Settlement of Disputes.
- The Supreme Commissions for Settlement of Disputes.
Article 174 defines the exclusive jurisdiction of "The Primary Commission for Settlement of Disputes" as:
1- To render final decisions on:
a) Labor disputes, the value of which does not exceed three thousand Riyals.2- To render decisions of first instance on:
b) Disputes relating to the stay of execution of decisions to terminate workmen, which are filed in accordance with the provisions of this law.
c) Disputes relating to the imposition of fines or requests for exemption from such fines.
a) Labor disputes, the value of which exceeds three thousand Riyals.
b) Disputes pertaining to labor injuries whatever the amount involved may be.
c) Disputes pertaining to termination of service.
Article 176 states that "the Supreme Commission shall have exclusive jurisdiction to render final and definitive decisions in all disputes referred to it on appeal and shall likewise be competent to impose upon the violators of the provisions of this Law the penalties prescribed herein". ©Saudia-Online
For further details pertaining to the Labor and Workmen law and attached procedures, contact the Ministry of Labor and Social Affairs, Labor Affairs Agency (see appendix I for address).
| seven-chapter new social insurance system was issued in the Kingdom of Saudi Arabia |
| A seven-chapter new social insurance system was issued in the Kingdom of Saudi Arabia. The new regulations govern the social insurance system, and covering the administrative organization of the General Organization for Social Insurance (GOSI), including its headquarters and branches, board of directors, administration, and finances. The regulations delineate all aspects of social insurance, including vocational risks and pension entitlements. They stipulate, for example, that vocational risk insurance is applicable to all workers indiscriminate of sex, age, or nationality; and that the rate of subscription is 2 percent of the salary of the subscriber to be paid by the owner of the business. Pension entitlement begins at the age of not less than sixty years. Subscription, voluntary for Saudi citizens in private business, is set at 18 percent of the salary, of which 9 percent is borne by the employer. Pension insurance, however, excludes civil service, armed forces and police personnel who enjoy special retirement pension systems; foreign personnel of international, political or military organizations; and workers involved in agricultural, marketing, pastoral, or maritime activities, including fishermen. The new social insurance scheme, recently ratified by the Council of Ministers, will come into force on the first day of the new Hijra year or on March 26, 2001, according to Sulaiman Al-Homaid, governor of the General Organization of Social Insurance. Al-Homaid highlighted some notable features of the new scheme at a press conference. He said under the new rules, the subscription rate would go up to 18 percent. The new scheme includes provision for early retirement, pension for families in the event of a breadwinner being imprisoned, and provision for artisans and those who pursue their own trades to seek social insurance coverage. ©Saudia-Online Compensation before the age of 60 or on disability are two other features of the new system. Moreover, in the new system women will be able to retire at the age of 55, he said. ©Saudia-Online There are also some new provisions, for example compensation at a rate of his average pay and for the loss of earning due to occupational hazards. The transportation of the dead body of a subscriber to his home inside or outside the Kingdom is another provision under the new scheme. Al-Humaid said the minimum level of pension in the event of non-occupational disability was increased to 50 percent from 40 percent. Receiving a pension from the civil service is not an obstacle to receiving the GOSI pension. The rate of the disability pension will be 100 percent of the average monthly pay in the case of total disability. For partial incapacity, the pension rate will be proportionate to the level of disability, he said. ©Saudia-Online The subscription rate will be increased to 6 percent in the first year and 7.5 percent in the second year and to 9 percent in the third year. The total subscription is fixed at 18 percent, half of which will be contributed by the employer. ©Saudia-Online The new statutes of the social insurance will be published in the government gazette on or after Dec. 27. The new system also brings parity between the insurance contribution of the employees of the private sector with that of the civil service and the military. ©Saudia-Online The minimum pension will be SR1.500 which is same as in the government service. ©Saudia-Online Source: Ain-Al-Yaqeen |
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