References
Labour Law, Royal Decree No. M/51
Date:
21 Aug 1970;
(view in NATLEX
»)
Scope
Size of enterprises excluded (≤): none
Workers' categories excluded: employer's family members, agricultural workers, domestic workers, seafarers, athletes
Art. 7 LL: The following shall be exempted from the implementation of the provisions of this Law:
(1)The employer's family members, namely, the spouse, the ascendants and descendants who constitute the only workers of the firm.
(2)Domestic helpers and the like.
(3)Sea workers working on board of vessels with a load of less than five hundred tons.
(4)Agricultural workers other than the categories stated in Article (5) of this Law.
(5)Non-Saudi workers entering the Kingdom to perform a specific task for a period not exceeding two months.
(6)Players and coaches of sports clubs and federations.
FTC regulated: Yes
Valid reasons for FTC use: no limitation
Sec. 55 LL
: 2
Art. 55(2) LL.
Maximum cumulative duration of successive FTCs: 36month(s)
Art. 55 (2) LL: If the original contract term and the renewal period amount to three years and the two parties continues to implement it, the contract shall become an indefinite term contract.
See art. 37 LL on foreign workers.
Maximum probationary (trial) period (in months): 3 month(s)
Art. 53 LC: 90 days not renewable.
Obligation to provide reasons to the employee: Yes
Valid grounds (justified dismissal):
Prohibited grounds: maternity leave
No statutory provision on non-discrimination in the LL.
Maternity leave: sec. 155 LL
Note: dismissal during pregnancy is not prohibited. What is only prohibited is dismissal during illness resulting from pregnancy provided the absence of the worker does not exceed 180 days.
Workers enjoying special protection: pregnant women and/or women on maternity leave
Limited protection. No prohibition of dismissal of pregnant women as such: the prohibition only covers maternity leave (sec. 155 LL: 10 weeks period) and period of illness resulting from pregnancy or delivery provided it does not exceed 180 days (sec. 156 LL).
Notification to the worker to be dismissed: written
Art. 75 LL.
Notice period:
Art 75 LL: the notice period shall be at least 30 days for monthly paid workers and 15 days for the others.
Pay in lieu of notice: Yes
Art. 76 LL.
Notification to the public administration: No
Notification to workers' representatives: No
Approval by public administration or judicial bodies: No
Approval by workers' representatives: No
Definition of collective dismissal (number of employees concerned) No legal definition.
Notification to the public administration No
Notification to trade union (workers' representatives) No
Notification to workers' representatives: No
Approval by trade union (workers' representatives) No
Approval by workers' representatives No
Priority rules for collective dismissals (social considerations, age, job tenure) No
Employer's obligation to consider alternatives to dismissal (transfers, retraining...) No
Priority rules for re-employment No
Notes / Remarks
No legal provisions on collective dismissals.
:
The Labour Law provides in art. 84 for an end-of-service award that shall be due at the end of the work relation, no matter the reason of termination of employment (retirement, end of the fixed-term contract, "force majeure", resignation). Such award shall amount to half-month wages for each of the first five years of service and one-month wages for the following years. It is however reduced in case of resignation.
: 0.25 month(s)
: 0.33 month(s)
: 0.5 month(s)
: 1 month(s)
: 2 month(s)
: 2.5 month(s)
: 7.5 month(s)
: 17.5 month(s)
:
No specific redundancy payment. However, the Labour Law provides in art. 84 for an end-of-service award that shall be due at the end of the work relation, no matter the reason of termination of employment (retirement, end of the fixed-term contract, "force majeure", resignation). Such award shall amount to half-month wages for each of the first five years of service and one-month wages for the following years. It is however reduced in case of resignation.
: 0.25 month(s)
: 0.33 month(s)
: 0.5 month(s)
: 1 month(s)
: 2 month(s)
: 2.5 month(s)
: 7.5 month(s)
: 17.5 month(s)
mine workers: Yes
Art. 77 LL: "If the contract is terminated for an invalid reason, the party who is harmed by such termination shall be entitled to indemnity to be assessed by the Commission for the Settlement of Labor Disputes, taking into account the termination circumstances and actual and potential material and moral damages sustained".
managerial / executive positions: Yes
Art. 78 LL.
police: Yes
Prior to referrimg any dispute to the Commission (acting as a Labour Court), it shall be brought to the labour office which shall attempt to settle it amicably (art 220 LL).
No information available as to any mandatory conciliation before the Commission for the Settlement of Labour Disputes.
Art. 77 LL & art. 210 to 228 LL on labour disputes settlement.
The competent body is the Commission for the Settlement of Labour Disputes which is part of the judiciary.
The Commission can only be seized after the amicable settlement before the labor office has failed.
Existing arbitration: Yes
Art. 224 LL: The parties can agree to settle the dispute through arbitration.