Saudi Arabia: Important explanation regarding residence fee

Riyadh: Saudi officials have clarified the procedure for the accommodation of foreigners under the new law, the new law will come into force from March 15, 2021.

According to the Saudi website, the Saudi Ministry of Labor has assured that the employment contract will be more important than the sponsorship in the new employment law. The employer will not have the right to ban travel without the worker’s consent or to ban employment elsewhere.

Regarding the new labor law in the country, which is to be implemented from March 15, 2021, the Chamber of Commerce and Industry had organized an online seminar in collaboration with a special committee of the Ministry of Manpower and Social Welfare.

The seminar was attended by Sattam bin Amir Al-Harbi, Secretary of the Investigative Committee for Improving the Employment Environment, and Engineer Hani Abdul Mohsen Al-Mujal, Secretary for Planning of the Ministry of Labor.

The ministry said the proposed law was aimed at improving the labor market in the country and protecting the rights of employers and employers by eliminating shortcomings, for which the most important provision would be the employment contract.

The ministry said it had sought the views of more than 700 investors and industrialists on job transfers for the proposed law, as well as their views on worker exits and other issues.

Addressing the meeting, Secretary to the Ministry Satam Al-Harbi assured that the employer and the employee will have a basic relationship with the employment contract which will be binding on both of them while the worker will have the right to get his exit re-entry visa through Abshar account. However, the necessary conditions for this process will be set.

The parties will be bound to abide by the work agreement. In case of any dispute, the matter will be referred to the Labor Court.

The secretary added that under the new labor law, any worker would be allowed to move from one institution or company to another, without any distinction between Saudi or foreign workers.

The worker will be bound to abide by the agreement while the employer will inform the worker of his concerns so that the contract can be made keeping them in mind. However, in no way will the employer have the right to oblige the worker to travel.

The employment contract will be linked through the Abshar system so that the parties can abide by it and in case of any dispute, the document can be submitted to the concerned agency. He added that the worker would have the right to take a leave of absence or return after the expiry of the agreement.

The worker will also be obliged to leave the country if he does not get a job in another company or company within the stipulated period.

Secretary for Planning Hani Abdul Mohsin Al-Mujal said that the sponsorship system does not exist but the conditional employment contract will be the only applicable law. In case of departure of the worker, if the company is in the green category, he should be issued a second visa immediately. While in the case of the red category alternative visa will not be issued.

Regarding the accommodation and fees of the worker, it was said that points are being considered in this regard. It is possible that the accommodation fee will be increased quarterly instead of annually. According to the new law, if the worker has signed a two-year contract and leaves before completing it, he will be fined, which has already been explained.

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