Work Permits and Labor Law for Foreign Employees in Saudi Arabia

Work Permits and Labor Law for Foreign Employees in Saudi Arabia

work permits, and labor law for foreigners

Employing non-Saudi workers in the Kingdom of Saudi Arabia (KSA) requires adherence to specific Labor Law requirements, including the procurement of work permits. This process is essential for obtaining an Iqama number (residence permit) for foreign employees and must be completed within 90 days of their arrival in the country.

To initiate the work permit process, employers must submit a request via the Qiwa platform’s Work Permit service. This online system simplifies the application procedure, facilitating compliance with local regulations.

Initial Work Permit Fees:

Work permits are issued free of charge for the first three months. Following this period, renewals incur fees based on the number of non-Saudi employees in the establishment:

  1. First non-Saudi worker: 800 SAR annually.
  2. Second non-Saudi worker:
  3. 700 SAR per year if at least one Saudi employee is present.
  4. 800 SAR per year if no Saudi employees are employed.

For three or more Non-Saudi employees:

  • If the total number of employees (both Saudi and non-Saudi) is fewer than nine, businesses may qualify for up to four exemptions, with each work permit costing 100 SAR per year.
  • For additional non-Saudi workers:
  • 700 SAR per year if there is at least one Saudi employee.
  • 800 SAR per year if no Saudi employees are present.

Validity of Work Permits:

Work permits can be issued for durations of 3, 6, 9, or 12 months. Certain job roles may have specific restrictions on validity periods that must be observed during renewals.

Issuing or Renewing a Work Permit:

To issue a work permit for a non-Saudi employee after they have received their border number upon entering the Kingdom with a permanent work visa, follow these steps:

  1. Log into your Qiwa business account.
  2. Select the employee(s) for whom you wish to issue permits.
  3. Choose the validity period (3, 6, 9, or 12 months) based on the employee’s occupation and business requirements.
  4. Review the fee calculations for requested and any expired work permits.
  5. Complete the payment.

Exemptions from Work Permit Fees:

Certain establishments may qualify for exemptions from work permit fees under specific conditions:

  1. Small Establishments: If a business employs nine or fewer individuals (including both Saudis and non-Saudis) and the owner is registered full-time with the General Organization for Social Insurance (GOSI), it may receive exemptions for up to four non-Saudi employees for one financial year.
  2. Saudi Employee Requirement: In a small establishment with fewer than ten employees, if there is a full-time Saudi employee (excluding the owner) registered with GOSI, the exemption applies to two non-Saudi workers per year.
  3. Industrial Companies: Industrial companies that are granted fee suspensions by the Ministry of Industry may also be eligible for exemptions, with the specific number determined by the Ministry.

Successfully navigating the complexities of work permits and labor laws in Saudi Arabia is vital for businesses looking to hire foreign employees. By understanding application procedures, fees, and eligibility for exemptions, employers can effectively manage their workforce while complying with local legal requirements. This knowledge not only streamlines operations but also enhances the experience for both employers and employees.

Key Provisions of Labor Law No. M/51 Year 2005

When hiring non-Saudi employees in KSA, businesses must adhere to specific legal frameworks governing foreign labor. Key provisions from Chapter 3 of Labor Law No. M/51 Year 2005 (Articles 32-40) outline the necessary requirements and conditions for employing non-Saudis, ensuring compliance with local laws. Recruitment for employment is permissible only with the approval of the Ministry of Human Resources and Social Development, which helps protect and effectively manage the labor market.

Non-Saudi workers must obtain a work permit from the Ministry to legally work in Saudi Arabia. The following conditions must be met to obtain a work permit:

  1. The worker must have legally entered the country and possess authorization to work.
  2. The worker must possess the necessary qualifications for the job, with no suitable Saudi applicant available.
  3. The worker must be contracted by an employer responsible for their employment.

A work permit is mandatory and cannot be substituted by any other permit or license required by different authorities for job performance. According to Article 36 of Law No. M/51 Year 2005, “The Minister will specify which professions and occupations are prohibited for non-Saudi workers.” Employment contracts for non-Saudis must be written and established for a fixed term. If the contract does not specify a duration, the work permit will determine the employment duration, expiring when the work permit does. Employers are prohibited from assigning workers to roles outside those specified in their work permits without following legal procedures for profession alteration. Additionally, workers cannot be employed by multiple employers simultaneously.

conclusion

understanding the issuance of work permits and compliance with labor laws for foreign employees in Saudi Arabia is essential for businesses aiming to navigate the local workforce effectively. Familiarity with the legal framework, application processes, associated fees, and compliance obligations enables employers to manage human resources efficiently while fulfilling regulatory requirements. By prioritizing these elements, companies can cultivate a productive and compliant work environment that supports operational goals while respecting employee rights and welfare.

If you chose us to support your specific issue, please do not hesitate to contact us using Inquiries Form (link to https://ahysp.com/contact-us/) or by sending an email to info@ahysp.com

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