FAQs on Saudi Labor Law

7/28/2019 FAQs on Saudi Labor Law

1/5

Compiled under: Barako Newsline ( http://barakonews.blogspot.com/)

Below are the frequently asked questions (FAQs) on Saudi Labor Law:

Q1 What is the instrument that will govern the employment of OFWs in the Kingdom

of Saudi Arabia?

A: The Work or Employment Contract signed by the worker and the employer. However,any stipulation that contradicts the Saudi Labor Law (SLL) including release and settlement of

workers rights, unless more beneficial to the worker, is null and void (Art. 8, SLL).

Q2 What is a Work Contract?

A: A Work Contract is a contract concluded between an employer and a worker, wherebythe latter undertakes to work under the management or supervision of the former for a wage (Art.

50, SLL) The Work Contract for Non-Saudis shall be written and of specified period. Otherwise,

the duration of the work permit shall be deemed as the duration of the contract. (Art. 37, SLL)

Q3 What is the Saudi Labor Law?

A: It is Royal Decree No. M/51 dated 23 Shaban 1426/ 27 September 2005, which tookeffect on 27 March 2006.

Q4 What are the latest amendments to the Saudi Labor Law?

A: On 25 March 2013, the Saudi Council of Ministers approved amendments in the Saudi

Labor Law specifying that foreign workers are not allowed to work for anyone other than their

employer, and that the employer is not allowed to leave his workers to engage in jobs for theirown personal gains.

The specific amendment made was to Article 39 of the Saudi Labor Law, which now states:

It is not allowed for an employer to let his (foreign) worker go out and work for others. It is also

not allowed for a worker to engage in work for another employer. The employer is not allowed toemploy workers who are under the sponsorship of others. The Ministry of Labor shall inspect the

firms and investigate the violations discovered by its inspectors, and then forward them to the

Ministry of Interior to take penal actions against them.

The employer is not allowed to let his worker engage in work for his own benefit. The worker

would also not be permitted to work on his own account. The Ministry of Interior shall arrest,deport and take punitive measures against these violators who are working for their own benefit

in the streets and public squares as well as against those who run away (from their sponsors).

Q5 Who are deemed to have violated these amendments?

A: Those affected fall into these categories:
http://barakonews.blogspot.com/http://barakonews.blogspot.com/http://barakonews.blogspot.com/


2/5

(i) Those who are working with employers other than their own sponsor, with the knowledge

of the original sponsor. This includes those who are in the process of transferring theirsponsorship, but have not finalized it yet.

(ii) Those so-called freelancers or those who have an iqama but do not or have neverworked for the sponsor in the iqama.

(iii) Those who are holders of a dependents visa, but are employed by an individual orcompany, whether licensed or not as an employer.

(iv) Those who have absconded from their sponsor, have a valid iqama and are working for

another sponsor.

It should be pointed out, however, that those who have long absconded from their

sponsor, do not have a valid iqama and are working for various employers are not directly

covered by the amendments. They are nevertheless in violation of Saudi immigration law, andthere are different procedures and regulations to be followed in these cases.

Q6 What are the remedies for these violators?

A: The Saudi Government has implemented a three-month grace period until 4 July 2013 toallow illegal workers and erring employers to correct their residency and work status.

Those working with an employer other than their sponsor should return to their original

sponsor and work exclusively under that sponsor. They can also transfer to a new sponsorprovided they follow existing rules for such a transfer.

Freelancers should desist from working until they are able to contact their sponsors andrectify their iqama/sponsorship status.

Workers with dependent visas should be conscious of their visa status, and desist fromworking even on part-time basis.

Q7 What are the possible penalties for the violators?

A: A violator can expect jail time, fines and deportation. It is possible, however, that a

worker can be spared from arrest if the worker and the original sponsor will correct his work

status during the three-month grace period. In the case of a worker with a dependents visa, thepenalty will include deportation of the dependent and the head of the family, as well as a penalty

for the employer.

Q8 If the worker has long absconded from the employer and stayed in Saudi Arabia

with an expired iqama, what can the worker do to be able to go home to the Philippines?


3/5

A: The amendments to the Labor Law do not directly affect workers who have absconded

from work and no longer have a valid iqama. Nonetheless, they are advised to do the following:

Contact their sponsor and request a No-Objection Certificate to clear the way for theirrepatriation.

Proceed to the Saudi General Directorate of Passports (Jawazat), along with the sponsor, for

settlement of penalties and fines.

Seek appropriate guidance and assistance from POLO with regard to contacting the sponsor and

transacting with the Jawazat.

TRANSFER OF SPONSOR/ RELEASE

Q9 What is the so-called sponsorship rule?

A: The so-called sponsorship rule refers to the need for foreign workers to have a sponsorfor his visa to work in the Kingdom. The sponsor under the rule must be the employer of the

foreign worker. Thus, working with a person who is not the workers sponsor or guarantor is

considered illegal and a ground for deportation. The parties involved are also liable for fines of

not less than five thousand riyals and not more than twenty thousand riyals, which fine shall bemultiplied by the number of person subject of the violation. The worker shall be repatriated at

the expense of the person who employs him. (Art. 233, SLL)

Q10 May a worker demand for a change or transfer of sponsor?

A: No. Transfer of sponsorship is not a legal right. It is subject to the discretion of the

sponsor and approval of the official authority.

Q11 What are the requirements and procedure for the change of sponsor?

A: The act of transferring sponsorship of workers is sanctioned by the Ministry of Labor.

Under current rules, a worker can only transfer to other sponsor/employer after having worked

with his current employer for at least two years.

The first thing that the worker should do is to secure the consent and approval of his sponsor to

transfer to another employer.

The procedure then is for his prospective sponsor to write a letter expressing his interest in the

workers service and requesting for his release. If the conditions are so acceptable to the presentsponsor, he should formally consent thereto and sign the release papers.

Thereafter, the prospective sponsor should present these documents with the application for

transfer of sponsorship and iqama for official approval of the Ministry.

Unless the legal rules and procedures are followed, an employer may not allow his worker to


4/5

work for others and a worker may not work for another employer.

Similarly, an employer may not employ workers of other employers. An employer may not allowa worker to work for his own account and a worker may not work for his own account. (Art. 39,

SLL)

REPATRIATION

Q12 Is repatriation of the worker an obligation of the employer?

A: Repatriation, which is the act of sending the worker back to the point of origin or place of

hire, is a mandatory obligation of the employer in the following cases: (1) expiration of contract:

(2) when the contract has been terminated for valid reasons or just cause as provided for in thecontract or law; (3) resignation of the worker after complying with the advance notice

requirement and satisfaction of the conditions set by the employer: (payment of indemnity, etc.)

(4) death of the worker; and, (5) when repatriation has been decided or determined by the Saudi

Labor Office and such other analogous cases.

Under these circumstances, the worker can demand for his repatriation as a matter ofright subject to clearance in cases there are other offenses or legal impediment, either civil or

criminal, imputed against the worker.

Q13 Who shall bear the cost of repatriation?

A: The employer shall bear the cost of exit visa and return ticket to the workers home

country at the end of the relation between the two parties. (Art. 40 par 1, SLL)

Q14 Under what circumstances will the employer be exempted from shouldering the cost

of repatriation?

A: The employer shall be exempted from shouldering the cost of return ticket if the worker

shall have absconded or worked for another employer (Art. 233, SLL), or shall have stopped orresigned from work prior to the end of contract. Likewise, a worker shall incur the cost of

returning to his home country if he is unfit for work or if he wishes to return to his home country

without legitimate reason. (Art. 40 par 2, SLL)

Q15 Can a runaway worker demand for his repatriation?

A: A runaway worker can demand for his immediate repatriation if his employer fails orrefused to send him home for a reasonable length of time and his situations falls under any of the

circumstances stated above. Should the employer refused to do so, the worker must file a

complaint at the Saudi Labor Office.

However, if the worker ran away or absconded from his employer for no valid reason or cause,

repatriation may be demanded after indemnifying the employer, unless the latter waives the

payment thereof. Absconding from the employer will also give the employer the right to report


5/5

the matter to the police and immigration authorities. Once reported, a worker can only be

repatriated through deportation.

It is noteworthy to remember that if a worker has valid ground or causes of terminating

the contract, such as clear violation of contract by the employer, the proper course of action is to

file a complaint at the Saudi Labor Office if conciliation is not successful, and not to abscondfrom the employer.

Q16 Can a worker immediately be repatriated if he or she has the money to buy his or

her own air ticket?

A: No. A worker found to have violated Saudi labor and immigration laws has to undergo a

legal process first before he can be deported by Saudi authorities. Certain penalties will imposed,particularly the penalty fees for an expired iqama.

NO OBJECTION CERTIFICATE

Q17 Can the employer be obliged to issue a No-Objection Certificate (NOC) in favor ofthe worker?

A: No. A worker cannot compel the employer to issue a no-objection certificate for the

purpose of returning to the Kingdom. However, the employer is required to give the workerupon his request and free of charge, a Certificate of Work Experience, indicating the date of his

employment, date of end of his work, his profession, and the last wage received. If the

certificate contains any remarks that are prejudicial to the workers reputation or likely to limit

his employment chances, the reasons shall be given. (Art. 64 par 1, SLL)

Q18 When is a No-Objection Certificate needed in case of workers who want to return

and work again in the Kingdom?

A: As a general rule, a worker would not need a No-Objection Certificate to return to the

Kingdom for work. However, if he had been previously holding a sensitive or highlyconfidential position where he was privy to his employers business or trade secrets, he needs

NOC if he returns for work within 2 years.

This is necessary especially if the Work Contract of the worker contains provision prohibiting re-

employment within two years. (Art. 83, SLL)

Source: http://www.abs-cbnnews.com/global-filipino/04/11/13/are-you-ofw-saudi-read-faq-saudi-labor-law

Documents

FAQs on Saudi Labor Law