Standard work contract soon

The Ministry of Labor is planning to issue a mandatory standard contract for all business establishments, commercial organizations and industry in order to regulate the relationship between employers and workers and guarantee the rights of both parties.

This was revealed by Sultan Al-Mutairi, Inspection Director at the Ministry of Labor in the Eastern Province, during a workshop on Human Resources Development at Asharqiya Chamber here on Tuesday. The guest of honor at the workshop was Saleh Al-Humaidan, President of the Human Resources Committee of the Eastern Province Chamber.

Al-Mutairi noted during the workshop that the details of the standard contract will be announced soon. He, however, clarified that any company can add clauses conforming to their businesses without violating the spirit of the standard contract which is being prepared in view of the amendments made last year.

In Article 35, Al-Mutairi said the ministry has the right to stop the renewal of a company’s license if the company fails prove that no Saudi is either available for the job or not willing to perform on a particular position.

He said that among the changes that have taken place and will be implemented soon, is increase of Saudi workers proportion to 12 percent from the previous six percent of total workforce.

The workshop also focused on the probation period. The Ministry of Labor is looking into demand made by several employers to extend probation period from the existing 90 days to 180 days on ground that 90 days are not sufficient to get familiarized with each other. However, the ministry is of the view that such arrangement could be made only after the consent of both the parties.

Al-Mutairi also took up the issue of  transfer of work location of employees. He said that under the new provision employer cannot shift his employee for more than one month without his consent and all charges related to his movement shall be paid by the employee. He said that the ministry recommends companies to specifically add this clause in their contract.

Article 77, he said, included additional modifications to the subject of the relationship between the employees and employers.

The injured party has the right to compensation which shall be assessed by the Settlement of Labor Disputes Commission which on its part will assess physical and moral damage.