Littler Global Guide – Saudi Arabia – Q4 2021 | Smaller

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Browse brief updates on employment and labor law from around the world.

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Penalties for dealing with illegal expatriates

New legislation enacted

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Advisor – Clyde & Co.

Ministerial Decision No. 3329/1435 has been updated to provide that in cases where an individual employer allows its employees to work for third parties or on their own account, they will be subject to a maximum penalty for a third violation , 100,000 SR, deportation (in the case of an expatriate), a custodial sentence of six months and a ban on recruitment for five years.

New table of fines and penalties

New legislation enacted

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Advisor – Clyde & Co.

The Ministry of Human Resources and Social Development (MHRSD) issued on December 17, 2021 an amended set of penalties for non-compliance with Saudi employment regulations by employers, with immediate effect. The new law provides for a revised list of penalties for violating various employment regulations, including penalties for failure to comply with Saudi requirements, work permit obligations and payment of wages. It also provides a separate list of sanctions applicable to recruitment companies.

The level of penalties depends on the employer’s workforce and, in some cases, penalties are multiplied by the number of workers affected by the employer’s non-compliance. Employers must settle (or appeal) all sanctions within 60 days of service by MHRSD, and failure to do so will result in suspension of all services provided by MHRSD.

Saudization requirements for certain professions

New regulations or official guidelines

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Advisor – Clyde & Co.

The Ministry of Human Resources and Social Development (MHRSD) has issued several rulings related to the requirements of the Saudi nationalization program (Nitaqat or Saudiization) for certain professions in marketing, health, medical devices, dentistry and from the pharmacy. Since April 11, (i) for dental professions, companies with at least three employees are required to employ Saudi nationals and pay a monthly minimum wage of SAR 7,000; (ii) pharmaceutical companies with five or more employees are required to employ Saudi nationals and pay a minimum monthly salary of SAR 7,000 for specialists and SAR 5,000 for technicians; (iii) healthcare companies are required to meet a 60% saudi quota and pay a minimum monthly salary of SAR 7,000 for specialists and SAR 5,000 for technicians; and (iv) companies whose employees work in professions related to the sale, promotion and introduction of medical devices, engineering and technical professions must pay their Saudi national employees a minimum monthly salary of 7,000 SAR for specialists and 5,000 SAR for technicians and other diplomas. holders.

Effective May 8, 2022, (i) for marketing, companies with five or more employees are required to meet a minimum of 30% Saudi requirements in their marketing functions and pay a minimum monthly salary of $5 SAR 000; and (ii) secretarial, translation, warehousing and data entry positions are reserved for Saudi nationals only, employees must be paid a minimum salary of SAR 5,000 per month.

COVID-19 Update

Important action by the regulator

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Advisor – Clyde & Co.

Saudi Arabia’s Interior Ministry announced on October 17, 2021 that wearing a mask is no longer mandatory in open places. Additionally, those who have received both doses of the COVID-19 vaccine are not subject to social distancing measures at social gatherings, public places, public transport, restaurants and cinemas. These spaces will be allowed to operate at full capacity.

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