New Labor law in the offing…..
JEDDAH: The Ministry of Labor unveiled a new bill that would unify contracts in the private sector along with a set of measures that are to be implemented in the future. The new set of measures aims to address workplace relations between the employee and the employer in the private sector.
The ministry’s new measures will focus on reducing labor disputes in the workplace, especially on payment issues. It will also address issues pertaining to job transfers, especially with regard to an employee seeking to change jobs.
The ministry also emphasized that the employment contract has to be made in duplicate with each party retaining a copy of the contract. The Ministry of Labor also said the new measures would include the caveat that no owner of a private sector company in Saudi Arabia’s shall be able to terminate an employee from service due to health problems. Also, the employees can now combine their annual leave to their sick leave.
Business owners will now be required to furnish their employees and workers the termination letter before the actual firing occurs. No owner shall transfer their employees to another location without the employee’s prior knowledge unless it is expressly written into the contract and signed by both parties.
The new bill states that an employee has the right to leave the job if there are any contractual violations, if the employer fails to pay the employee’s salary or subjects a worker to abuse.
Some measures are aimed at streamlining payment of salaries. The Ministry of Labor now states that an employer shall not change their employee’s status from a monthly-based salary to an hourly or daily wage without the employee’s agreement.
The bill also affirms the business owner’s rights to terminate the contract of their workers without compensation in cases of assault or fraud. Employers can terminate employees for disclosing company secrets.
By SULTAN AL-TAMIMI | ARAB NEWS
Published: Jul 9, 2010 23:14 Updated: Jul 9, 2010 23:14