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Employment law in Jeddah, like the rest of Saudi Arabia, is regulated through the Labor Law adopted by Royal Decree No. M/51 in 2005. The law sets the general rules for hiring and termination of employment contracts for all private sector workers. The key principles of fairness and objectivity must be adhered to during the hiring and firing process while ensuring the rights of both employee and employer are protected.
Managing employment-related issues requires a clear understanding of local laws and regulations. Disputes related to unfair dismissal, redundancy, end-of-service benefits, contract interpretation and rights under contracts may call for legal assistance. Additionally, businesses may need legal help to ensure their recruitment and termination policies are in full compliance with Saudi labor laws.
Saudi Arabia’s Labor Law outlines key points relating to hiring and firing policies. Both parties must willingly consent to an employment contract. For terminations, an employer must have a valid reason to lawfully terminate an employee. Without a valid reason, an employee could claim for unfair dismissal. Compensation is also often based on the length of service and the last-drawn salary. The law also includes provisions for resignation, termination, end of service payments, and redundancy.
Employees are entitled to fair treatment, equal opportunities, appropriate remuneration, and safe working conditions. They have the right to receive their wages without unlawful deductions, rest periods and leave, written employment contracts, and end-of-service benefits, among others.
Job redundancy, misconduct, incapacity or qualifications, and violation of company policies are some of the reasons considered valid for terminating an employee.
If an employee is dismissed without a valid reason or without following the proper process. They can claim for unfair dismissal, potentially leading to compensation or reinstatement.
Typically, a notice period of 30 to 60 days must be given for unbounded contracts, or until the end of a bounded contract.
Expatriate employees are also protected under Saudi Labor Law. They are entitled to the same rights as Saudi nationals, except they need a work permit to work and must leave the kingdom once their work permit or visa expires.
The Saudi Ministry of Human Resources and Social Development and the Riyadh Chamber of Commerce and Industry are excellent resources for comprehensive information on labor laws and regulations.
If you believe you need legal assistance, it would be beneficial to consult with legal counsel specialized in employment law in Jeddah. They can offer guidance, clarify your rights, and advise on how to proceed, based on the specific circumstances of your case.
