Saudi Law

Saudi Arab New Contract System All Details

According to Al-Akhbariya, the Ministry of Manpower said in a statement that the new employment agreement will have a positive effect on the Saudi labor market, increasing production.
The competitive environment will be better and there will be more flexibility between employer and employee. Ministry of Manpower spokesman Nasir al-Hazani said the new employment law went into effect on Sunday, March 14, and is one of the key goals of Saudi Vision 2030. The spokesman said the new law would benefit more than 7 million workers in Saudi Arabia. He said that this law would also be applicable to the workers who do not have employment contract while this law would also be applicable to the workers whose employment contract has expired.

Will this new law will protect the rights of the employer?

Responding to this, the ministry spokesman said that the law has been prepared keeping in view all the aspects. It takes into account the rights and interests of the parties. Employer rights are protected in many ways. Most notably, if a foreign employee requests a final exit or exit re-entry, the employer is given the right to express dissatisfaction with the foreign worker through the media۔ The spokesman said the employer could also take advantage of the competition clause in the agreement based on section 83 of Saudi labor law.

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