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Employment Law of the Kingdom of Saudi Arabia

By |November 19th, 2015|

Employment Law of the Kingdom of Saudi Arabia: Key Amendments 1.             Introduction Employment Law of the Kingdom of Saudi Arabia has been amended by Royal Decree No. M/46 of 05/06/1436H and came in to force on 24 October 2015[1].  It is now critical that all existing contracts of employment and internal procedures and work manuals are reviewed and amended to ensure that they comply with the new amendments. 2.             Transfer of Undertakings Protection of Employment[2] Where a business is transferred in whole or in part (sale or otherwise), the employees will automatically transfer to the transferee, who must protect in full all “rights and privileges” provided by the original employer. 3.             Employment Policy Manual (the “Manual”)[3] (a)  All employers irrespective of their size must now have Employment Policy Manual drafted in accordance with the Ministry of Labour Model Employment Policy Manual (“Model”)[4]. (b) Additional[5] provisions that do not contravene the Model may be added[6]. (c)  The Model must be displayed in a place that is easily accessible or by any other means that ensures that the employees have seen it[7]. 4.             Training[8] Businesses that employ more than 50 employees must ensure that their Saudi employees equal to 12% of the work force undergo work related training. 5.             Employment Contract[9] (a)  The Ministry of Labour will publish a Model Employment Contract (the “MEC”)[10]. (b) Additional[11] provisions that do not contravene the MEC may be added[12]. 6.             Probationary period – The two rules (a) The 180 day rule[13] The initial 90 days probation period may be extended by a mutual agreement in writing for another 90 days to a total of 180 days (6 months)[14]. (b) Re-employment and new probation rule An employee who leaves (by termination [...]

A Legal Warning – Make sure your lawyer is qualified

By |June 19th, 2014|

A Legal Warning – Make sure your lawyer is qualified On Thursday 16 January 2014, Arab News disclosed to the world that the Saudi Council of Engineers had sized over 30,000 fake foreign engineering degrees, and had had stopped a large number of such engineers from working as engineers in the Kingdom of Saudi Arabia. Having now been in the Kingdom for a number of years, I began to think about my own practice area, the field of legal services. As a rule, in the Kingdom of Saudi Arabia, only Saudi nationals are called a “lawyer” (in Arabic “Moohami”), foreign lawyers are called legal advisors, irrespective of the foreign lawyers seniority, such  lawyers provide advice as a minimum with the permission of a Saudi lawyer in accordance with the Saudi Lawyers Code issued by the Ministry of Justice. Over the last seven years, I have witnessed and heard some rather disturbing facts; I discuss some of them below as a warning to users of legal services to ensure that they have vetted their lawyers. Fake legal advisors Some individuals have foreign law degrees and practice in Saudi Arabia as legal advisors, they have not qualified in their jurisdiction, accordingly not only are they not qualified to provide legal advice, but they are also committing an offence for which the individual should be reported to the police or where services have already been obtained, a complaint to the police or legal action before the General Courts (formerly known as Shariah Courts) should be commenced. Non- practicing lawyers Potential legal service users should also be careful of lawyers who have qualified as a lawyer but have not practiced as a lawyer. Client should take care to understand [...]

Latest One 2 One Legal Training _Understanding Legal Opinion

By |April 24th, 2014|

1. General training for bank and legal staff on how lawyers draft legal opinions and the key issues that they take into consideration. Please click on this text to view the audio training session.

Kingdom of Saudi Arabia: How to keep IPO, PO, and Private Placement costs down

By |December 9th, 2013|

Kingdom of Saudi Arabia: How to keep IPO, PO, and Private Placement costs down                                                                                                                                                             Saudi Arabian businesses remain to a large extent family run, there is however an increased appetite for growing the business, by accessing equity capital markets (“ECM”), whether by an initial public offering (an “IPO”), public offering (a “PO”) or by way of a private placements (“Private Placements”).  The discussion in this paper is equally relevant when a company is considering growth by accessing funds through the debt capital markets (“DCM”), whether by normal debt instruments by issuing bonds (usually abroad) or through the Saudi Tadawul (the Saudi Stock Market), by issuing Sukuks. Either of the option requires an element independent due diligence, (commonly, just shortened to “DD”) to be carried out by lawyers, financial advisors and accountants for the benefit of the potential investors, (the market as a whole, open to the general public as well as sophisticated investors in the case of an IPO and PO, and generally to sophisticated investors in the case of Private Placements). Depending on the law firms, the fees can be anything from a US$25,000 to US$250,000 and sometimes even more, this does not of course include cost of remedial work, which again can be anything from a moderate sum to those that extend to hundreds of thousands of dollars. The biggest problem with remedial work is delay, and the cost of delay is not just in loss of management downtime, but also loss of opportunity cost as well the expected and anticipated direct and calculable financial costs, such as increased costs of borrowing as opposed to an injection of equity. A logical question to ask is:  What can a client do to reduce costs [...]

Saudi Business Etiquette

By |December 9th, 2013|

Saudi Business Etiquette The etiquette of doing business in any country is important, although there is a shared culture in some common cultures and even continents, the Kingdom Saudi Arabia, is quite unique even within its closely related GCC cousins. This briefing note is drafted with a view to educate the uninitiated to the way things are done in the Kingdom of Saudi Arabia. Some of the things might be common sense, but it is amazing how often we all seem to forget the basics. Below is a gentle reminder of how to deal with things from the moment you land, remember this is a very different culture and environment to the one that you are used to. 1.    Arrival As you’d expect to anywhere, arrive promptly, but do not be surprised if your host is late and indeed to not comment on it.  Commenting on such matters may make you appear to be “too hasty” and “judgemental”. 2.    Appearance Non-Arab businessmen are expected to wear a suit and a tie. It is very important to ensure that the suit is and shirt are well pressed and that the appearance does not appear dishevelled. Ensure that you have carried out your usual basic grooming. Cleanliness is a must. 3.    Fragrance Saudi Arabian nationals take pride in being fragrant.  It is very important that one is fully ‘perfumed’. In the West, too much is forowned upon, however the right perfume in Saudi Arabia is prized and such attention to detail is very much appreciated and respected by your host. 4.    Greetings The common greetings you will hear is “Assa la mou alikum”. This basically translates to “ May peace be upon you”. This is used universally.  [...]

Executive Management

By |July 19th, 2013|

We have been privileged to have set up legal departments from scratch. If you are considering setting up an internal legal department, talk to us, we would be happy to provide an independent analysis of your requirements.We will continuously discuss and develop your initial concept and guide you through to implementation of your plan, and will be there as ongoing advisors to monitor and review KPI indicators for your newly set up legal department. Representative transaction of our team include the following: • Appointed by the world’s best outsourcing company (ISS) as their youngest General Counsel and engaged to setup and managed the legal services department of the company. • Advised on strategic risk and legal structural for a new energy holding management company being established to dominate the renewable energy sector. • Appointed as principal strategic legal advisor to one of the world’s largest business / risk consultancy organisations. • Counselled senior management for multiple companies on investment strategy. OUR CORE VALUES Our services is built on the core values of honesty, integrity, trust and mutual respect. whatever the nature of your business we hold these ideas as integral to our vision.We fully appreciate and understand our success is dependent on you being successful and accordingly, our aim is to work with you in partnership, and for us to mutually share in each others success. advice is clear, concise and to the point which is appreciated when dealing with matters on a tight deadline took control of things, the issues were resolved within a very short time and with the results we required true professional and I would recommend his services to others difficult transaction was undertaken with diligence [...]

Law Firm Client Protection Service

By |July 19th, 2013|

Are you a law firm that has great relationships in the Kingdom of Saudi Arabia but does not wish to have a physical presence? Are you a firm who can clearly see the threats posed to your relationships by other international firms? If any of the above applies to you, let us deal with all the legal issues that your clients face in the Kingdom of Saudi Arabia. Be assured that we will provide you and your clients with the same service level that has been recommended as having been built on “high integrity” and “professionalism” and that is consistently rated as providing “great results.” We will provide you with the peace of mind that your interests are protected without compromising on the quality of the service level that your client needs and demands.. OUR CORE VALUES Our services is built on the core values of honesty, integrity, trust and mutual respect. whatever the nature of your business we hold these ideas as integral to our vision.We fully appreciate and understand our success is dependent on you being successful and accordingly, our aim is to work with you in partnership, and for us to mutually share in each others success. "advice is clear, concise and to the point which is appreciated when dealing with matters on a tight deadline" "took control of things, the issues were resolved within a very short time and with the results we required" “true professional and I would recommend his services to others” “difficult transaction was undertaken with diligence and efficiency ensuring the whole process was completed smoothly” “certainly one of the best lawyers I have worked with in my 20+ years career ” “fantastic [...]

Private Client

By |July 19th, 2013|

Do you need an advisor that is able to guide you and be your on-call trusted advisor? We have been recognised and recommended for our “very high moral standards,” “courtesy and professionalism”. We have consistently demonstrated that we are willing to work with our clients with unparalleled “dedication and persistence,” to get our clients “great results”. Please get in touch so that we can explore ways that we can work together. Representative transaction of our team include the following: • Prepared a private funding strategy for a shareholder of property development investment valued at $1.25B. • Assisted a family business by helping them setup and invest in the IT sector. • Proved instrumental in setting up and launching a family business to invest in the Healthcare industry. • Helped a family setup and launch a new business in the catering sector. • Provided sound advice on the management of a private property investment portfolio. • Devised investment portfolio and investment strategies for high net worth individuals and continually advises individuals investing in UK markets and businesses. advice is clear, concise and to the point which is appreciated when dealing with matters on a tight deadline took control of things, the issues were resolved within a very short time and with the results we required true professional and I would recommend his services to others difficult transaction was undertaken with diligence and efficiency ensuring the whole process was completed smoothly certainly one of the best lawyers I have worked with in my 20+ years career fantastic business acumen and genuine enthusiasm creativity and foresight experience and confidence genuinely lovely person well-thought legal advice and is [...]

Shariah Advice

By |July 19th, 2013|

We have access to some of the best Shariah scholars, who are willing to work with us to find the right solutions for you, this is why we have been noted for our “profound knowledge of Shariah Compliant Finance,” come to us, lets us give you the Shariah advice that you need at the most optimum time and cost. Representative transaction of our team include the following: • Structured and corrected error-filled Shari’ah documents drafted by opposing counsel to yield a complete overhaul and redrafting of the documents/agreements. • Advised a MENA centric investment bank in the structuring and executing of a Shari’ah compliance purchase of an offshore oil rig operation. • Counselled and advised on Shari’ah compliant trade finance efforts for multiple clients across several industries. • Advised on the drafting and execution of a novel Murabaha Facility provided to a trading company by its founding shareholder. • Created and delivered Shari’ah compliant finance documents in connection with a $10B Ijara-based Islamic financing a downstream petrochemical complex. • Drafted Shari’ah compliance documentation for a real estate fund. • Advised on auto-based securitisations with initial warehouse facility followed by Shari’ah compliant Sukuk issuance. advice is clear, concise and to the point which is appreciated when dealing with matters on a tight deadline took control of things, the issues were resolved within a very short time and with the results we required true professional and I would recommend his services to others difficult transaction was undertaken with diligence and efficiency ensuring the whole process was completed smoothly certainly one of the best lawyers I have worked with in my 20+ years career fantastic business acumen and genuine enthusiasm creativity and [...]

Business Risk Management

By |July 19th, 2013|

we have been pioneers in business risk decision automation, we have developed business risk modeling which are used on a global basis and have been described by peers as “detailed and effective.”We are able to assist in the development of risk modeling which deal with matters that include, legal, financial, compliance, commercial contracting, data protection, and competition.Help us to help you, put together effective systems that use the same risk and business decision-making process through out all your business functions. Representative transaction of our team include the following: • Created the award-nominated ICRAM (ISS Contractual Risk Analysis Model) which is now globally used; model yielded zero insurance increase during the year of implementation. • Advised on strategic risk and legal structural for a new energy holding management company being established to dominate the renewable energy sector. • Provided risk strategy for the acquisition of numerous companies and developed both risk strategies and risk models for employers and clients.   OUR CORE VALUES Our services is built on the core values of honesty, integrity, trust and mutual respect. whatever the nature of your business we hold these ideas as integral to our vision.We fully appreciate and understand our success is dependent on you being successful and accordingly, our aim is to work with you in partnership, and for us to mutually share in each others success. advice is clear, concise and to the point which is appreciated when dealing with matters on a tight deadline took control of things, the issues were resolved within a very short time and with the results we required true professional and I would recommend his services to others difficult transaction was undertaken with diligence and [...]