Employment Law of the Kingdom of Saudi Arabia
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 [...]