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LABOR AND WORKMEN LAW

OF THE KINGDOM OF SAUDI ARABIA

Riyadh, Saudi Arabia 07 November 2004

To my fellow OFWs in Saudi Arabia: I would like to share with you this updated copy of the Saudi Labor and Workmen Law which I copied and compiled from publications of the Council of Ministers, the Ministry of Labor and the Internet. If you find unrelated words as well as typos in some of the sentences that affect the meaning, I suggest you revert to the original book for reference. There may be unclear English translations of some articles, however let us not forget that the Arabic text shall prevail at all times. Also, please note that there are explanations to certain articles which were not clearly defined in the original book. Superseded articles are likewise clarified through margin annotations. This is for your reference and guide. Very truly yours, ALEXANDER E. ASUNCION
Subaybayan tuwing araw ng Linggo sa Arab News PINOY XTRA ANG BATAS SA PAGGAWA AT IBA PANG ALITUNTUNIN

dont have to die for your country to become a hero as long as you offer your heart to the needy, weak and oppressed and be a model Filipino KaBayani ALEX ASUNCION

You

LABOR AND WORKMEN LAW


OF THE KINGDOM OF SAUDI ARABIA

Kingdom of Saudi Arabia Bureau of Presidency The Council of Ministers THE SAUDI LABOR AND WORKMEN LAW

APPROVAL SUMMARY Kingdom of Saudi Arabia Council of Ministers

This Law has been approved by the Council of Ministers on his Decision No. 745 Dated 23/24/8/1389H and issued under Royal Decree No. M/21 dated 6/9/1389 H and published on UMALQURA Newspaper No. 2299 dated 19/9/1389H.

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LETTER OF APPROVAL No. M/21 Dated 6/9/1389H With the help of God Almighty; We, Faysal Ibn Abd al-Aziz Al Saud King of Saudi Arabia After reviewing Articles (19) And (20) of the Council of Ministers No.(38) dated 22 Shawal 1377H and after reviewing the Council of Ministers decision no. (745) dated 23/24/8/138H: We decree as follows First: We sanction the Labor and Workmen Law in the form attached hereto. Second: The Vice President of the Council of Ministers and the Minister of Labor and Social Affairs shall put this decree of ours into effect. Royal Signature Faysal Ibn Abdul-Aziz Al Saud

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DECISION NO. 745

Kingdom of Saudi Arabia Bureau of the Presidency of the Council of Ministers Decision No. 745 dated 23-24/8/1389H The Council of Ministers After reviewing letter No. 16508 dated 22/8/1389H, of High Authority, the draft Labor and Workmen Law attached hereto, and the comments made by the High Authority on the Draft, and After studying the above; Decides as follows: The Draft Labor and Workmen Law hereby approved in the form attached hereto. A Draft Royal Decree to that effect, copy attached, has been prepared Faysal Ibn Abd al-Aziz Al Saud President of the Council of Ministers

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TRANSMITTAL TO MINISTRY OF LABOR

Kingdom of Saudi Arabia Bureau of the Presidency of the Council of Ministers Of The Council of Ministers His Highness The Minister of Labor and Social Affairs Please find enclosed the following:

No. 17682 Dated 7/9/1389H

1. Copy of Council of Ministers Decision No. 745 dated 23-24/8/1389H concerning Labor and Workmen Law. 2. Copy of the Royal Decree No. M/21 dated 6/9/1389H sanctioning the above-mentioned Law. 3. Copy of that Law in 211 pages as provided by the Bureau of Presidency of the Council of Ministers. 4. Copy of Council of Minister decision No. 746 dated 23-24/8/1389H in concern of Social Insurance Law. 5. Copy of the Royal Decree No. M/22 dated 6/9/1389H that sanctioned the Social Insurance. 6. Copy of that law as provide by the Bureau of Presidency of the Council of Ministers in sixty-five articles. Please put them into effect and arrange for prompt typing and distribution of both regulations to the related bodies and to provide immediately the Ministry of Information with two copies in purpose to be published on local Newspapers. Please put them into effect and arrange for prompt typing and distribution of both regulations to the related bodies and to provide immediately the Ministry of Information with two copies in purpose to be published on local Newspapers. Salih Al-Abbad President Bureau of Presidency of the Council of Ministers Copy + copy of the Two Decrees to Minister of Finance and National Economics Copy + copy of the Two Decrees to Ministry of Interior Copy + copy of the Two Decrees to Ministry of Information Copy + copy of the Two Decrees to Ministry of Commerce and Industry Copy + copy of the Two Decrees to General Auditing Bureau Copy + copy of the Two Decrees to General Personnel Bureau Copy + copy of the Two Decrees to High Committee Copy + copy of the Two Decrees to Political Division Copy + copy of the Two Decrees to Secretary General of The Council of Ministers

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CHAPTER 1 GENERAL PROVISION Article 1 This Law shall be called the Labor Law. Article 2 The provisions of this Law shall apply to: a. Any contract of work under which any person undertakes to work for the account of an employer and under his control and directions in consideration of a wage. b. Apprenticeship contracts. c. Workers of the governments, local authorities, Charitable establishments and public organizations

Article 3 Provisions of this Law shall not apply to: a. Workers in family enterprises that does not include, but only members of the employers family. b. Persons who work in pastures or agriculture, except: 1. 2. 3. Persons working in agricultural establishment which process their own products. Persons who permanently engaged in operation or repair of mechanical equipment. Required for agriculture. House Servants and others workers regarded as such.

Margin Annotation: Provision of this law shall apply to B mentioned above as per the decisions of the Council of Ministers No. 209 dated 6/2/1398H Article 4 In the absence of special provision to the contrary, the provisions of chapter 8 and articles 164,165,166 shall not apply to the following: a. Workmen who work in nonmechanical establishments, which employ normally less than 5 workers, where the work does not cause any of the occupational disease. b. Seamen or Skippers employed on ships of less 500 ton, who are subject to the provisions of part 2 of the commercial regulations (maritime trade) sanctioned by Royal Order No. 32 dated 15 Muharram 1350H. Article 5 The Minister of Labor may consider all or any of the following establishments to be governed by the provisions and chapters mentioned in Article 4 of this Law:

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a. Any establishment employing juveniles. b. Any establishment employing women. Article 6 It is illegal to violate the provisions of this Law or to prejudice any other rights acquired by the workman by virtue of any other regulations, or concessions agreements, labor contract, or any other agreement, or by virtue of any arbitration award or Royal Order or in accordance with what has been habitually granted by the employer to his workmen in a given area or areas. Whereby the workman waives any right established in his favor by virtue of the provisions shall be null and void even if such stipulation was made to the effective date hereof. Article 7 Following terms and expressions shall have the meaning set below: 1. Adult: Person who has completed 18 years. 2. Adolescent: Person who is more than 15 years and less than 18 years. 3. Juvenile: Person who is under 15 years. 4. Commission: Commission is formed according to the provisions of Chapter eleven of this law for settlement of work disputes, chairman of the commission is the official who heads it. 5. Continuous Service: Uninterrupted service with the same employer or his legal successor from the commencement of service , service shall be considered as continuous in the following cases: a. b. c. Regular vacations or leaves authorized by employer. Where, the worker absents himself from work for legal excuse for periods totaling to 30 days a year. Where, the worker stops working for reasons imputable to or emanating from the employer with which the worker had nothing to do.

6. Wage: All that is given to the worker in consideration of his work under contract of work, whether written or unwritten regardless the nature of the wage whether it is in cash or in kind, whether it is paid monthly, weekly, daily or in piecework basis, on the basis of number of worked hours or the amount of production, regardless such a payment consist of commissions or tips paid in accepted practice and where there are rules controlling accurate calculations. In general, wages shall include all increments and allowances of all kind including the high cost of living allowance and the family allowance. 7. A Workman: any person working for the account of employer and under his management and supervision if it is not a direct suppression in consideration of a wage. 8. An Employer: Any natural or juristic person employing a workman or more in consideration of a wage.

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9. An Apprentice Any person who joins the service as an employer in purpose to learn a trade or craft. Article 8 In case that employer entrusts to a natural or juristic person one of his principal works or a part of it the latter shall give the worker all the rights and privileges granted by the employer to his own workers and both shall be responsible for that. Article 9 The employer and the worker shall be known of the contents of this Law in purpose to be aware of their rights and obligations. And in order to regulate the work a set of these rules shall be displayed at a conspicuous place in every establishment employing more than twenty workers and it shall show the following: a. Classification of workers in accordance to their positional categories. b. Working hours, official holidays, off days (rest), pay days. c. Work shifts. d. Regulations and rules of attendance, absence tardiness and access control for checking in and checking out, inspection. e. Vacations and eligibility. f. Any other details necessitated by the nature of the work.

A set of disciplinary rules shall also be displayed showing acts, offensive, acts of insubordination and workers obligations, and the corresponding cash penalties or disciplinary actions, in accordance with the disciplinary rules issued by Minister of Labor. The said rules and any amendments shall not become effective except after have been approved by the Ministry of Labor. Article 10 The employer shall keep at place of work records showing full name of the worker, nationality, occupation, date of birth, place of residence, family status, date of hire, wages & wage supplements Changes in status , penalties imposed on him, and relative investigation reports regular work hours and overtime, vacations and benefits in cash or in kind, date of termination and reasons, compensations received, and any other necessary information relate to the implementations of this Law, and in particular, the information relate to employment of juveniles and women and occupational injuries and diseases. Article 11 In case of several partners or managers in any establishment, a resident manager shall be appointed to be responsible for any violation of the rules of this Law. Labor office shall be informed of the name of the said appointed manager. Article 12 In the event complaint against an officials who are charged with the enforcement of this Law in connection with the discharge of their official duties, investigation shall be made by a commission of

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three, one of whom shall be selected by the Minister of Labor, while the second shall be from the personnel bureau and the third shall be an administrative investigator designated by the Grievance board or by any juridical authority replacing it. If the investigation reveals that the complaint was false or vexatious, the complainant shall be penalized with a fine of not less than five hundred riyals and not more than twenty thousand riyals, and if it is found to be valid the commission shall raise a report to the Minister of Labor so that he may issue his instructions for the necessary action. Article 13 Complaints shall not be heard in respect of violations of the rules of this law after the lapse of twelve months from date of occurrence of such violations and case or claim relating to the rights shall be heard after the lapse of twelve month from the date of the termination of the work contract. Claims or rights that relate to previous regulations shall not be heard after the lapse of one full year from the effective date of this Law. Article 14 Actions arising under the rules of this law shall be heard expeditiously, the losing party shall be ordered to pay the other party all or part of the expenses incurred by the latter. Article 15 The amounts entitled to the worker or dependants shall be considered first-class privileges debts, and for recovery, the worker or his heirs shall have a priority right over the employers property. In case of bankruptcy or liquidation of the employers establishment, such amounts shall be recorded as privilege debts and the worker shall be paid immediately a portion equivalent to one months salary before payment of any other costs, including judicial, bankruptcy or liquidation expenses. Article 16 Arabic Language to be used in all decisions, records, registers, files, statements and others provided in this law, or in any decision or order in application of it, as well as instructions or circulars issued by the employer to his workers. In case employer along with the Arabic language uses foreign language, the Arabic text shall prevail at all times. Article 17 Times limits and periods provided in this rules shall be computed on the Hegira Calendar, unless another calendar is agreed upon. Article 18 The employer shall submit the following information to labor office before commencing his work: a. Name and location of the establishment and address. b. Nature of work to be carried out. c. Type of energy to be used. d. Number of workers. e. Name of responsible manager.

LABOR AND WORKMEN LAW


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f.

Any other necessary information.

g. Information that relates to existing establishments at the time this law is put into effect shall be submitted within three months from that time. Article 19 Labor office shall be notified within seven days from date of replacement of the responsible manager and the assumption of the new manager, and in case no one has been appointed, the person who actually performs the managers duties shall be regarded as a responsible manager. Article 20 A month shall be reckoned as thirty days unless otherwise provided. Article 21 Physicians selected by consultation between the Minister of Labor and minister of health shall issue necessary certificates. Article 22 It is not allowed for any worker or employer to abuse any provision, decision and rules of this law. It is illegal, too, to bring pressure to bear on the freedom of the other with the object of realizing any interest or supporting points of view which they adopt which is inconsistent with the freedom of work and the jurisdiction of the authorities concerned with settlement of disputes. Penalties provided in this law shall be applied to any offender. CHAPTER 2 LABOR INSPECTION Article 23 Competent inspector designated by decision of Minister of Labor shall undertake labor inspection and they shall have the jurisdictions and functions provided in this law. Article 24 Functions of labor inspection: a. Monitoring of proper execution of the rules of the labor law, and in particular those relate to work conditions, protection safety procedures for workers, wages and the employment of juvenile. b. Make available to workers information and technical guidance that enable them to adopt the best means towards enforcement of the rules. c. Notifying concerned authorities of the deficiency that provision fails to remedy and suggesting alternatives. d. Recording of violations of the provisions of the labor regulations. Article 25

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Labor Inspector shall take the oath before the Minister of Labor to perform their duties honestly and faithfully and not to disclose industrial secrets that the may know by reason of their offices even when they cease connecting with such offices. Ministry of Labor shall provide the inspectors with ID card. Article 26 Employers shall extend to the inspectors required facilities that facilitate performance of their duties and shall present to them all required information and to respond when requested to appear before of inspectors or to send a delegate to appear on their behalf if required. Article 27 Inspectors shall have the right to: a. To access to any establishment that is subject to the rules of this law ant time during day or night and without prior notice conditioned that such access shall be made during working hours . b. Perform any necessary investigation to ensure proper enforcement of the law and they may in particular: 1. Investigate the employer or the worker separately or in presence of witnesses about matters relating to the enforcement of the rules. 2. Examine the records and documents and obtain copies or extracts. 3. Take samples of used materials subject to inspection when believed such material may have a harmful effect on the workers health or safety. 4. To ensure that the required notices are posted. Article 28 Appropriate rules shall be prepared by Ministry of Labor in regard of inspection operation provided in preceding article and shall be approved by decision of the Council of Ministers. Article 29 The inspector shall notify the employer of his presence unless he sees the inspection matter calls for a different course of action. Article 30 The inspector has the right to instruct employers to make modifications in the operating rules to the plant equipment used in their establishments within the period he prescribes that is to insure proper applications of rules that relate to workers health and safety. And he has the right to require the immediate adoption of the necessary measures if an imminent danger is threading workers health. Article 31 Complaints received by inspectors shall be treated as strict confidential and shall not disclose to employer the existence of such complaints.

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Article 32 If inspector finds contravention of law, he shall prepare a report in duplicate setting forth the event and raise it to the director of labor office for necessary action. Article 33 Directors and inspector may call upon police authorities to provide necessary assistance when required. A competent physician shall accompany the inspector when the duty of the later relates the heath aspects. Article 34 Head of inspectors shall prepare a monthly report on the inspection activities, number and nature of violations and he shall also prepare an annual report showing results of inspection and offering his suggestions. Copies of both reports are to be sent to Ministry of Labor. Article 35 The Deputy Minister of Labor shall prepare an annual report on inspection in the kingdom covering all matters relate to the executions of the rules of the labor law and the following in particular: 1. Statement covering inspection rules. 2. Statement of inspection officials. 3. Statistical data on establishment subject to inspection and number of workers. 4. Statistical data on number of visits executed by inspectors. 5. Statistical data on number of committed violations and penalties to which offenders were sentenced. 6. Statistical data on labor injuries. 7. Statistical data on occupational diseases. Article 36 The ministry shall prepare warning notices, reports, inspection records notices and rules for safekeeping and forms to be distributed in various areas. Article 37 In addition to the general requirements for employment of employees, the labor inspection must satisfy the following requirements: a. They shall be impartial. b. Not to have any direct or indirect interest in the establishment inspected by them. c. They shall pass a special professional examination following a training period of not less than three months. Article 38

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The ministry organizes the special training courses of the inspectors and controllers, special attention shall be given to the following: a. Principals of organizing inspection and communications with employers and workers. b. Principal of auditing and accounting. c. Principal of counseling employers in regard of rules application and benefits of application. d. Fundamental Principals in industrial technology and means of protection against labor injuries and occupational diseases. e. Fundamental Principals in productivity and its relation to securing favorable conditions for the performance of work. CHAPTER 3 COMBATTING UNEMPLOYMENT FIRST: EMPLOYMENT OFFICES Article 39 The ministry shall set up employment offices in locations suitable for employers and workers as well. These offices shall be under the supervision of the ministry that shall offer free service in purpose to assist workers in finding appropriate jobs and employer to find suitable workers. Such offices shall collect and analyze necessary information on the position and development of Labor market and make it available to the concerned bodies who deal in economic and social affairs. The employment offices shall carry following duties: a. To record the names of job applicants, show their vocational qualifications, practical experiences and desires. b. To obtain information on vacancies from employers. c. To offer advice and assistance to the job applicants in regard of the vocational training required for the obtainment a job. d. To facilitate the transfer of workers from position to another or from one area to another. e. Others which may be determined by the Deputy Minister of Labor. Article 40 It is not allowed for any person to act as an employment agent or as supplier of workers unless permitted by the Deputy Minister of Labor, provided that he possess an annual license which shall be renewable at the discretion of the competent authority that controls the said activity. The license shall be granted only when there is an employment belonging to an approved organization capable to act as an intermediary in supplying the required workers. Article 41 It is not allowed for employment agents or the worker suppliers to ask or accept from workers any kind of rewards in consideration of granting them contracts of work, or to collect from them any related expenses unless such expenses are decided and approved by the competent authorities

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Workers supplied by an agent or by workers supplier shall be regarded as employed upon the engagement by employer and shall have the rights and privileges of the original workers of the establishment. The relationship between the supplier and the worker shall end and shall become a direct one with the employer. Article 42 The employer shall inform labor office via a registered mail of the current vacancies and the newly created jobs, and shall give details of the job in regard of conditions, wage, and nature of work requirements for employment within 10 days from the date on which the post has become vacant or created. Article 43 The employer shall submit to the appropriate labor office every year during the month of Du-al Hijah the following information: 1. Statement showing numbers and names of his workers, their positions, wages, nationalities and number of work permits. 2. Statement of vacant post or the newly created, rate of pay, jobs filled and reasons for not filling others. 3. Report on nature of work, conditions and circumstances, expected increase or decrease in number of vacancies. Article 44 Without prejudice to the conditions laid down in this concession and other agreements and orders regarding training, education and scholarships, every employer employing more than one hundred workers, shall train in technical jobs a number of his Saudi national not less than 5% of his total workers as per the training program set my Ministry of Labor. The Minister of Labor shall decide the rules and conditions to be observed during the training and shall determine the maximum and minimum periods and also the theoretical and practical methods, methods of testing and granting of certificates. Article 45 Saudi workers shall not be less than 75% of the total number of the company/ establishment workers and their wages shall not be less than 5% of the total wages of workers. The ministry may reduce this ratio in absence of technical skills or educational qualifications. Article 46 The Minister of Labor shall require employers in certain industries or in certain areas not to appoint worker except through employment offices according to terms and conditions determined by him. Article 47 Rules and procedures governing the conduct of business at the employment offices shall be determined by decision of Minister of Labor prescribing the forms of records, notices and other documents handled by such offices and also job classification scheduled according to international job classification which serve as basis for organization of employment operation.

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SECOND: EMPLOYMENT OF FOREIGNERS Article 48 Work is a right of Saudi national, it may not be exercised by others except after fulfillment of the conditions provided for in this chapter. The Saudi workers are equal in their rights to work in all areas of the country without discrimination. Article 49 No foreigner shall be brought into the country to work nor permitted to work with company or private establishment except after the approval of the Minister of Labor and after securing a work permit which shall not be granted unless following conditions are fulfilled: 1. Worker shall have entered the country in a legal manner and shall have satisfied the condition of the residence rules and conditions. 2. To possess vocational skills and educational qualifications of which the country is in need, provided that the nationals possessing such qualifications are either lacking or insufficient. 3. That he shall be under contract with a Saudi employer or non Saudi authorized under the regulations for the investment of foreign Capitals, or under contract with and guaranteed by a concession company. The term work shall mean any industrial, commercial, agricultural financial or other work and also any service including domestic service. Article 50 As per rules, conditions and periods determined by Minister of Labor, the employer shall vocationally train his Saudi workers to replace foreign workers, that by improving their technical standards. Employer shall keep register on which he shall record the names of the Saudi workers who have replaced non-Saudis. THIRD: VOCATIONAL REHABILITATION OF DISABLED Article 51 A disabled person is that person whose capacity to perform his work has diminished as a result of physical or mental infirmity. Article 52 Vocational rehabilitation shall mean the services provided to a disabled in purpose to enable his to regain his capacity and perform his normal work or any other work that suits his condition. Article 53 Minister of Labor in agreement with other ministries and concerned establishments shall set instructions provided for vocational institutes. Disabled persons shall be given certificates approved by Minister of Labor confirming their rehabilitation. Article 54

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Any employer employing more than 50 workers and where the nature of his business enables him to employ disabled persons shall employ some of them to the extent of 2% of total of his worker. Employer shall inform the labor office of jobs occupied by disabled workers who have been vocationally rehabilitated. Article 55 If the injury of the worker result in disablement that doesnt prevent him performing a job rather than his previous job, the employer shall assign to him a suitable work at the salary fixed for that job within 1% of the total workforce, and without prejudice his reserved right for the injury compensation. FORTH: CONTRAST OF APPRENTICESHIP Article 56 Contract of apprenticeship shall mean the contract upon which the employer agrees to employ a young worker in purpose to teach him a certain trade of craft within a specific period during which the worker shall be under the supervision of the employer. Article 57 The employer who employs apprentices shall be at least 21 year old, of good reputation and he or who is in charge of training shall be in possess of adequate qualifications and experiences required for the trade or craft subject to apprenticing. And the establishment shall satisfy technical conditions that include trainers and other facilities required for teaching the trade or the craft. Article 58 Contract of apprenticeship shall be made in writing and period and stages shall be determined and wages as well. Wages of upper stages shall not be less than the lower ones that given to similar work and determination shall not be on piecework or product basis. Article 59 Contract of apprenticeship shall be written in three copies at least, one for each part: the employer, the worker and the third copy shall be submitted to the appropriate labor office within a weeks time from date of commencement of the contract. The registration date at labor office shall be considered the official date for the commencement of the contract. The apprentice or his legal testamentary guardian where he is under 16 years of age shall sign the contract. Such contract shall be exempted from registration fees or stamp duty. Article 60 The Minister of Labor shall determine the jobs of apprentice, periods for each trade or craft and also the theoretical and practical program and conditions of examination. Head of Council of Ministers shall approve the certificates given at completion of the period. Article 61 The Minister of Labor shall have the right in all cases to appoint an expert or more in the trade or the craft to be organized, and he shall avail himself of his/their reports.

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Article 62 The apprentice shall submit to a medical examination before commencing his program in purpose to determine his ability to perform the trade he wishes to be trained on, and if the trade or craft required special medical fitness, the report shall state whether such physical or psychological conditions are fulfilled. Article 63 The employer shall guide and monitor the conduct of the apprentice as a godfather and advice him to avoid serious errors, and shall not ask the apprentice to accomplish operations not relating to his practicing the trade or the craft. Article 64 The employer shall instruct gradually in principals of the trade or craft stipulated in the contract and shall at the end of the contract deliver to him a document acknowledging completion of the apprenticeship. Article 65 Apprentice shall be guided through the instruction of his master in full respect and politeness and to cooperate and assist his master within the limits of his capacity and ability. Article 66 The employer may terminate the contract when he feels that the apprentice does not have the desire or ability to complete usefully the apprenticeship. The apprentice shall have the same right in terminating the contract, provided that the part who wishes to terminate the contract shall notify the other part at least one week prior to the date of cessation of work. Article 67 In the establishments, industries and trades to be specified by the decision of the Minister of Labor, the minister may oblige them to accept: a. A number and specified portion of apprentices according to conditions and periods determined in Articles 60 and 61. b. A number and specified portion of students or graduates of the industrial and vocational institutes to be trained and to obtain practical experiences according to conditions, periods, and wages determined in an agreement between the ministry and the establishment. Article 68 Fiscal charge called Vocational Training Tax may be by decision of Council of Ministers imposed on industrial and vocational establishment whose vocational field and number of workers determined by recommendation of the Minister of Labor. The proceeds of the proposed vocational tax shall be used in financing the training institutes and to establish new ones when necessary. Article 69 The employer shall or shall not keep the apprentice in his service at the end of the apprenticeship period, the apprentice shall have the right to stay or not unless provided contrary in the contract.

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CHAPTER 4 WORK CONTRACT Article 70 The work contract is a contract signed between the employer and the worker where the worker agrees to work under the direction of the employer in consideration of a wage. The contract contains terms and conditions of work agreed upon for specified or unspecified period or for accomplishment of a certain specified work. Article 71 The employer shall not be obliged to re-employ the worker under probation period for more than three months in respect of those who are employed at a monthly rate or for not more than one month for others. The same employer shall not appoint the same worker under probation for more than once and to be stated clearly in the contract that the work is under probationary period and period shall be clearly determined. Article 72 The work contract of specified period shall terminate upon the expiry of its period, if both parties shall continue to enforce it, then it shall be considered renewed for a specified period. Article 73 If the contract is for unspecified period, either parties shall terminate it for a valid reason after notifying the other party in writing thirty days prior to termination date for the workers on monthly pay and fifteen days for other workers. If the party who cancel the contract fails to observe the provided period he shall be obliged to pay to the period notice or the remainder therefor. The last wage of the worker shall be taken as basis for the assessment of the indemnity that is for workers who are paid on a monthly, weekly, or daily rate. As for workers whose payment is fixed on piecework basis, the compensation shall be calculated on the basis of the average pay for the actual workdays during the last three months. Article 74 If the contract of work is canceled for a non-valid reason, the party who is prejudiced by such cancellation shall be entitled to an indemnity to be assessed by the concerned committee, where material and moral harms shall be taken into account, and also the period of service, age of the worker, wages, family burdens he shoulders, the degree of the arbitrariness of the discharge decision, the extent of the decision affects on the workers reputation and any other conditions in accordance with rules of equity and current generally accepted practice. Article 75 The worker who is discharged for a non-valid reason shall submit an application to director of labor office requesting stay of execution within fifteen days from date on which he received the discharge note. The director of labor office shall immediately proceed on taking the necessary action to settle the dispute in an amicably manner. If settlement not reached, he shall refer the application to the competent commission along with a

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memorandum of five copies in which he summarizes the dispute and presents the argument of both parties, and the comments and recommendations of labor office for settlement of the dispute. The chairman of the commission shall, within three days from referral of the application, fix a hearing for the examination of stay of execution within two weeks form date of such referral. Employer and the worker shall be given a notice to attend the hearing. The commission shall decide on the application within two weeks from date of the first hearing. Its decision on this respect shall be final. A hearing for examination of the basic issue shall be fixed within the following week. If the commission orders stay of execution, the employer shall be ordered to pay the worker a sum equivalent to his pay from the date of his discharge. The employer may return the worker to his job within one week of the issuance of the decision and pay him his wages, and the dispute shall be considered settled. Such settlement shall be reported to the chairman of the commission. If settlement is not reached during the said period, the commission shall decide on the basic issue within a period not exceeding fifteen days from date of decision issuance for stay of execution. If commission finds that the worker discharge was not for a valid reason, it may order his reinstatement with payment of his entitlements and any other compensation. The proof that discharge was based on valid reasons shall lie with the employer. The decision in this respect shall be considered as instance. The discharge shall be considered for no valid reasons if it followed the claim of the worker for his legitimated rights and when proved that there are no other reasons for the discharge. In this case the employer shall be ordered to reinstate the worker to his job and pay him his wages from the date of discharge up to the date on which he returned to work and his service shall be considered continuous. The discharge shall be considered with no valid reasons when it was caused by the refusal of the worker to comply with the instructions of his transfer from his original place of work where that transfer was not for valid reasons necessitated by work requirements, or if such transfer may cause serious prejudice to the worker. In this case the employer shall be ordered to return the worker to his job in the original place of work and to pay him his wages from date of discharge, and his service shall be considered as continuous. The workers right in applying for stay of execution shall laps if he fails to submit his application within the prescribed fifteen days, without depriving him the right to claim for his other legal rights during the period of the one year specified Article 13 of this law. Article 76 If the work contract is concluded by a person who act on behalf of the original employer or works for his account, both, such a person or the worker shall be held responsible (jointly) for the fulfillment of obligations prescribed hereunder. Article 77 The contract of work must be in writing in two copies in Arabic language, one to be retained by each party. The contract shall be considered existent even if it is not in writing, and the worker may prove his right by all means. Any of the two parties may request a written contract at any time. As for governmental or general establishment officials, the employment letter issued to them by such circle shall be considered as a contract of work. Article 78

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The employer may not transfer the worker to another place rather than his original place of work when that necessitates the change of the workers residence, or if it cause serious prejudice to the worker and where there is no valid reasons dictated by nature of work. Article 79 The worker who is paid in a monthly pay rate may not be reclassified to receive his pay in a daily pay rate, weekly pat rate, hourly or piecework rate unless he agrees to that in writing, provided that does prejudice his rights acquired before. The worker may not be classified in a lower grade. Worker may not be asked to perform a job that is essentially different from the job agreed upon in the contract unless he agrees in writing provided that should be dictated by nature of work and shall be on temporary basis. Article 80 The employer may not pay foreign workers wages and awards exceed the wages paid to his Saudis workers when their skills and technical abilities and educational qualifications are equal except in the limits necessitated by the need to attract foreign workers. Article 81 If the worker causes damages or destruction of materials or machinery or products of the employer due to the workers fault or his disobedience to employer instructions, the employer shall withhold from his wages an amount required for the repair or restating things, provided that the deducted amount shall not exceed the total pay of five days a month. The employer may claim for a higher for recovery if the employer has other properties. Article 82 The work contract shall not end upon the employers death, it shall end upon the death of the worker or his disability to perform his job due to illness resulting in his absence for not less than consecutive ninety days or an aggregated period not exceeding one hundred twenty days, and such disability shall be established by a medical report. The employer must refrain from canceling the contract during the period o illness, and in case of termination, the employer shall pay the worker the full termination award according to the provisions of this law, without prejudicing the rules of injuries compensation. Article 83 The employer may not cancel the contract of work without termination award, advance notice, or indemnity, except in the following cases provided that the worker shall be given the chance to submit his objection against the cancellation: 1. If the worker during work caused assault to the employer or to his supervisor. 2. If the worker fails to fulfill his essential obligations or if he fails to disobey the instructions or to observe the safety instructions in spite of the written warning delivered to him. 3. If it is proved that the worker has adopted a bad conduct or committed an act affecting honesty or honor. 4. If the worker in intent to cause losses to employer committed an act or negligence provided that the employer shall inform the concerned circles on the event within twenty four hours from time on which the event come to his knowledge.

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5. If it is proved that the worker has committed counterfeit to obtain the job. 6. If the worker is appointed under probation. 7. If the worker absents himself with no valid reason for more than twenty days a year or for ten consecutive days, provided that a written notice shall be delivered to him after ten days in the first case and after five days in the second case. 8. If it is proved that the worker has left without the permission of the concerned physician the hospital or any place prepared for his medical treatment, without prejudice his rights in receiving compensations of wok injuries according to the rules of GOSI. 9. If it is proved that the worker has disclosed the industrial or commercial secrets of his work. Article 84 The worker may in the following cases leave the place of work before the end of the contract without a prior notice and without prejudice his right in receiving termination award or the indemnity for the losses come upon when the cancellation is made by the employer: 1. If the employer fails to fulfill his essential obligations towards the worker. 2. If he is called upon by the employer to perform a work that is essentially different from the nature of the work described in the contract, or if the employer transferred him from the original place of work to another where such transfer necessitate the change of his residence and causes serious prejudice to the worker and where is no valid reason indicated by the nature of the work. 3. If the employer or whoever is acting on behalf of him committed an assault or an immoral act against the worker or on of his family members. 4. If there is a serious danger threats the workers safety or the health, provided that the employer failed to remove such danger. 5. If the employer or his representative has mislead the worker at time of concluding the contract. 6. If the employer has compiled the worker through unfair treatment toward him or to appear as terminating the contract. Article 85 The employer shall be bear the costs of returning the worker to the place where the contract was concluded or the place from where he was brought during the period determined by labor office at the end of the work or at the termination of the contract for one of the reasons provided in Articles 82, 83 and 84 conditioned that the worker shall not have engaged in another job at his prior place of work or shall have not ceased to work for a valid reason, or shall have expressed in writing before the labor office his desire not to return to the place where the contract was signed or to the place from where he was brought. If the employer shall fail to fulfill this obligation, the concerned circles upon the request of labor office shall repatriate the worker immediately and recover costs from employer. If the discharge is under Article (83), employer shall be exempted from such obligations if he requested so.

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Article 86 If the service of the worker shall come to an end, the employer shall return to him all his deposits, and worker shall be entitled to obtain and free of charge a work certificate contains salary and period of service and any other facilities he was receiving. Grounds shall be stated where the certificate contains what may prejudice the workers reputation or if it diminishes the workers chances to obtain a job. Article 87 If the contract of specified period shall come to an end, or if cancelled by the employer in the unspecified contracts, the employer shall pay to the worker a service award calculated as follows:

Half month pay for each year for the service of the first five consecutive years. Full month pay for each of the following years

The last monthly pay shall be the basis of calculations, and the worker shall be entitled to the award of fraction of the year according to portion he spent in service and shall also be entitled to the award provided at the beginning of this article in the following cases: 1. If he is called to military service. 2. If he resigns for marriage or for childbirth. 3. If he left the work as a result of force majeure beyond his control. In exemption to the provision of Article 6 of this law, agreement may be made not to include commissions and sales percentage (which naturally increases and decreases) in the calculation of the service award. Article 88 In the contracts of unspecified periods, the worker shall be entitled to receive one third of the service award provided in the previous article when he resigns after a period of service not less than two consecutive years and not more than five years, two thirds if the period is more than five consecutive years and less than ten years, and to a full award if he resigns after ten years in service provided that he shall in all cases notify and in writing his employer about his intention to resign thirty days before he leaves the work prior. Article 89 All obligations shall be discharged, in spite of, dissolution, liquidation, shutdown, bankruptcy, merge, subdivision of the establishment or its conveyance by inheritance, legacy donation, sale, assignment, or any other dispositions. With exception of the liquidation, bankruptcy and authorized final shutdown, the contract shall be considered in force in all above-mentioned cases. Article 90 The original employer and the new one, shall be jointly responsible for the discharge of all obligations arising from the work contract before the transfer of ownership, and obligation arising after that shall be assumed on the new employer. OBLIGATIONS OF EMPLOYERS

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Article 91 In additions to the rules and provisions of this law, the employer shall: 1. Treat his worker in the due respect and refrain any word or deed that may affect their dignity or religion. 2. Facilitate all tasks related to labor inspection teams and control application of rules and to provide the concerned authorities with the required information. 3. Grant his workers the adequate time to exercise their rights and regulate such exercises in a way that would not affect the progress of work. Article 92 The employer shall be obliged to pay the worker his wages at the time and place specified in the contract. Article 93 If the worker reports to work at the hours of the work day specified in the contract and is prevented to perform his job, he shall be entitled to the pay of that day. Article 94 The employer or who supervises the work shall prevent the entry of any substance or the consumption of the same, and whoever found in possession of such substance shall be subject to the legal punishment in addition to the administrative penalties. Article 95 Employers who employ more than ten workers shall issue their workers a service card to bear the signature and the stamp of employer, name, nationality of the worker and his occupation, date of birth, date of hiring, his wages and others. Date of termination shall be added when his contract comes to an end. The minister may issue card forms that shall be applied by the employers. OBLIGATIONS OF WORKERS Article 96 In additions to the rules and provisions of this law, the workers shall: 1. Perform the work required of them according to the work contract under the control and direction of the employer and in accordance of his instructions, where such instructions do not violate the contract, the law or the public morals, and if obeying such instruction doesnt expose to danger. 2. Return in consumed materials to the employer and to take care of the machines and equips. Replaced under their disposal. 3. To adhere to good conduct and behavior during work time. 4. Extend their assistance without claiming for additional pay, in cases of disasters and dangers that threaten the safety of workers or the place of work.

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5. To undergo the medical examination for the purpose of making sure that they are free from occupational, common or incurable diseases. 6. Keep the technical, commercial or industrial secrets of material they produce or they participate in producing it, such secret that may prejudice the interest of the employer. Article 97 1. If the worker succeeded to make a new invention during his service, the employer shall not have the right in that invention. 2. The invention made by the worker shall belong to the employer when the contract states that the worker shall devote all his efforts for the said invention. 3. If the invention has a significant economical value, worker may in the mentioned cases claim special compensation which shall be assessed in accordance to principal of equity. Such assessment shall take in consideration the amount of assistance extended by the employer. Margin Annotation: Above Article 97 has been canceled as per the provision of Article 61 of the patent invention regulations issued by the Royal Decree No. M/38 dated 10/6/1409H where Article 12 of those regulations provided the following: The patent invention shall belong to employer whenever it was resulted in the execution of a contract, or if it contains an obligation of full exertion of effort in invention, or if the employer proved that the worker would have not reached the invention except, as result of utilizing the facilities and information granted by employer. The provision of the previous article shall not prejudice the workers right for the obtainment of special compensation agreed upon by the two parties or assessed by the commission in the lights of the different circumstances of the contract and the economic value of the invention. Shall be illegal any agreement that deprives the work from this right. The previous provision shall be applied to governmental workers. The application for obtainment of patent that received from the worker (inventor) shall be considered as if received during his service even if he has left the work two years back. Article 98 The worker shall use the protection equipment designated for operation and to be guided through the instructions set for the reservation of his health and his protection from injuries and diseases and he shall refrain from ant act or negligence which would result in failure to abide by the instructions or misusing or impairing the equipment provided for the protection of his fellow workers. The employer may include the penalty of whoever violates the provisions of this article in the disciplinary rules. CHAPTER 5 MARINE LABOR CONTRACT Article 99 Any work contract signed between the owner or the financier of a Saudi ship of not than 500 tons, and a sea man or a master to perform work on a board ship, or for a sea voyage is considered a marine work contract and subject to the provisions of this law, provided that such provisions doesnt contradict the provisions of this chapter. Article 100

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The term Financier of ship shall mean any natural person or company or public establishment for whose the account the ship is fitted out. Article 101 The term seaman shall mean any person, male or female, who works on board ship. Article 102 All workers on the ship shall be subject to the authority and the orders of the master. Article 103 All the work contract of seamen shall be entered in the records of the ship, under pain of nullity and liability. Such contract shall be written in a clear language, leaving no doubt or controversy about the determined right and obligations. The contracts shall provide clearly whether it is made for unspecified period or for one voyage where the town or sea port in which the trip ends shall be determined. Article 104 The work contract must provide the nature of the work assigned to the seaman and the method of performance, the wages and supplements to be paid to him, and any other details. Article 105 Work regulations and conditions shall be posted on board ship in the place that reserved for the crew. The terms and conditions shall include the following: 1. Obligations and duties of the seaman towards the financier of the ship and work regulations board ship. 2. Obligations of the ship financier towards seamen in regard of wages rewards and others. 3. Methods of wages suspension or deductions and payment of loans against wages. 4. Place and time for final settlement. 5. Rules of sleeping accommodations and food supply on board ship. 6. Illness and injuries of seaman. 7. Conduct of seamen and their repatriation to their countries. 8. Paid annual vacations of seamen. 9. Service award and other indemnities and compensation payable at the end of service. Article 106 The work contract shall be written in four duplicates, one copy for the master, second copy for the seaman, third copy to be filed at the cost guards and the forth shall be delivered to labor office. The contract must show the date on which it is concluded, the place and the name of the seaman, his

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surname, age and nationality, home and the work assigned to him. If the contract is made for one voyage date and place of sailing shall be mentioned. Article 107 The seaman must satisfy the following condition: a. Must have completed 18 years of age. b. Must be in possession of an appropriate certificate permitting him to work in marine service. Article 108 All the entitlements of the seaman shall be payable in the official currency, and may be paid in foreign currency if it has become due when the ship is outside the territorial waters and the seaman agrees to that in writing. The seaman may request the employer to pay his cash dues to whoever he may designate. Article 109 The employer shall deposit the entitlements of the descendent or lost seaman or to the seaman who is not able to receive them to the chairman of the primary commission. Article 110 The employer shall bear the cost of the sleeping accommodation and food of the seaman. This shall be regulated with decision to be issued by Minister of Labor. Article 111 Any seaman participated in the rescue of another ship shall be entitled to a share in the compensation determined for such a deed regardless the wage. Article 112 The employer may cancel the contract without an advance notice or compensation or award if the ship is sinks or confiscated or lost. The employer, also, may cancel the contract without an advance notice or compensation or award if voyage is cancelled and was on the basis of one voyage trip. Article 113 In cases that the contract expired or cancelled the employer shall be obliged to: a. To return the seaman to the port from which he departed at the beginning of the contract. b. To secure food and sleeping accommodation for the seaman until he reached the port. Article 114 Working hours on board ship shall not exceed twenty-four hours in two consecutive days, or one hundred and twelve hours in fourteen consecutive days while the ship is on high seas, and eight hours while the ship is in port. The seaman may be put to work on the rest days while the ship is in port for two hours for routine cleaning works. CHAPTER 6 PROTECTION OF WAGES

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Article 115 The Council of Ministers has the right, when necessary, to specify minimum wage rates in general or for a given district or occupation. The Council of Ministers shall be issued such decision according to the recommendations of the Minister of Labor, and shall be effective from the date of its publication in the official gazette. For the recommendation of minimum wages the Minister of Labor shall seek the assistance of a committee composed of the deputy of labor office, finance and national economy, petroleum and minerals sources, commerce and industry. Minister of Labor shall select two additional members of experience and knowledge. Article 116 The wage and all due entitlements of the worker shall be paid in the official currency during the working hours according to the following rules: a. Workers on the daily rated shall be paid once a week at least. b. Workers on the basis of monthly pay shall receive their wages once a month. c. If the work is performed in piece and needs a period that exceeds two weeks, a payment proportionate to the executed work shall be made to him every week and full balance shall be paid in full within the week following the completion of the work. d. In other cases wages shall be paid to workers once a week at least. Article 117 When the service of the worker is terminated he shall be paid his wages immediately, however, if he leaves the work on his own accord his wages may be paid to him within seven days at the most from date on which he left the work. Article 118 The employer may have the right not to pay the worker any due entitlements unless the latter acknowledge receipt on special record prepared for that purpose at the place of work according to the form issued by the labor office. Article 119 No deductions from the workers wages may be made to satisfy private rights except in the following cases: a. Recovery of advances or excess amounts paid to him provided that such deduction shall not exceeds 10% of such a wage. b. Dues of social insurance. c. Contributions of the worker in the saving fund and advances due for the fund. d. Any other installments to any plan for construction of houses, if any. e. Fines inflicted on the worker for offenses under Article 125 and any amounts withheld in consideration of any damage he had caused according to Article 81.

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f.

Any debt to be recovered in execution of judiciary judgment provided that deducted amounts shall not exceed oneforth of the wage due and provided that debt of alimony and debt for food and clothing shall be satisfied before the other debts.

Article 120 The percentage of deductions shall not exceed in all cases half of the wage due unless it is proved to the committee the possibility of increasing the deduction beyond that percentage, or that the worker needs more than one-half of his salary and under no condition be paid more than three quarters of his salary. Article 121 In any amount is deducted from the worker's wages for any reason rather than the provisions specified in this law and without the consent of the worker or if the employer delays the payment without an accepted justification, the worker or his representative or the head of labor office may submit an application to the commission so that it may order the employer to return to worker any wrongly-deducted amounts or to pay him his outstanding wages. And if it is proved to the committee that the employer has unjustifiably deducted the said amounts or delayed payment of the wages, the commission may impose on the employer a fine that shall not exceed double the amount deducted from the workers wages or double the outstanding wages. Collection of the ordered amount shall be made through the administrative channels. Article 122 Service shall be rendered for pay when that service consists in a work not customarily performed if it is in occupational line of the worker who performed it. Article 123 a. If the wages that employer is obliged to pay are not provided in the contract of work or the labor regulations, the wage determined for another work of the same kind shall be adopted, if exists, or shall be determined with the general accepted practices of the trade, or, otherwise the commission shall determine the wage according the requirements of equity. b. That shall be followed in determining the quality and scope of work, which the worker must perform. Article 124 The under-mentioned amounts shall be considered as part and parcel of the wage and shall be taken into account when computing the amounts to be withheld. 1. Commissions given to peddlers, traveling salesmen, and commercial representatives. 2. Percentages paid to employees of the commercial establishments on the price of their sales and allowances paid to them on account of high cost of living. 3. Any grant paid to the worker in addition to his salary, and the awards paid for his honesty and those for increase in his family obligations and what alike, if such amounts are determined in the contract or in the labor regulation, or if paid as a general accepted practice and considered by the workers as a part of the wage and not a gratuity.

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Article 125 The employer who employs more than twenty workers must post a set of rules covering penalties and rewards and the conditions under which these are to be imposed or granted and he shall post such rules in a conspicuous place in the establishment. To be effective, Minister of Labor thereto must approve such rules and any modifications within two months from the date of their submittal. If the said period elapses without the ministers approval or objection, they shall become effective. The minister may by decision issue standard rules for penalties and rewards relevant to the nature of the work, in order that employers may be guided by them in preparing the rules of theirs own establishments. The employer may not impose on the worker, for a single offense, a fine exceeding the wage of five days, or suspend him as a disciplinary measure without pay for a period exceeding five days for a single offense. In all cases, the worker shall not be subject to more than one penalty for the same offense, nor shall the amount withheld from his salary in single month in satisfaction of the fines imposed upon him exceed the pay of five days; nor shall the period of suspension from work without pay exceed five days per month. Margin Annotation: The said Standard rules for penalties and rewards has been issued under the decision of the Minister of Labor No. 119 dated 12/4/1390H. Article 126 The worker may not be accused of any offense that was discovered more than fifteen days later; nor may penalized for more than thirty days after the offense is proven with regard to workers on monthly pay rate , or more than fifteen days after the offense is proven with regard to other workers. No penalty may be imposed upon a worker except after hearing his remarks and examining his defense. The worker shall have the right to object before the labor commission, which shall issue the final decision in that matter within one week from date of recording the objection with it. Article 127 Fines imposed on workers must be recorded in special register that shows the name of the worker, amount of his wage, and reasons for the action and the date on which the fine is imposed. CHAPTER 7 PROTECTION AND SOCIAL SERVICE Article 128 Every employer shall take the precaution required for the protection of his worker from hazards and diseases resulting from work and machinery used in work, and the protection and safety of work, and he shall not withhold any amount of the workers wages for providing such service. Article 129 Employers shall observe following rules: a. To keep the establishments clean and in a good sanitary condition free from obnoxious odors. b. To ventilate the work rooms in the establishment and to keep sufficient area for breathing according to the health levels and standard determined by Minister of Labor.

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c. To take the necessary precaution for the protection of workers from injuries resulting from, any gas, dust, smoke or any other waste that may generate n the course of the work. d. To provide sufficient lights during working hours. e. To provide water closet in an easily accessed places in the rate of on for each five workers or less. f. Adequate potable water shall be provided for workers at suitable places.

g. Adequate water and facilities shall be provided for workers to wash themselves. Article 130 If the work exposes the worker to a physical injury, poising or disease, the Minister of Labor may issue a decision to determine such a work and the measures to be taken by the employer to protect the worker. The employer or whoever is acting on his behalf shall inform the worker upon his employment of the hazards of the occupation and the precautionary measures that he must take. Margin Annotation: Minister of Labor issued decision No. 435 dated 4/11/1404H determining the work and occupations that expose workers to poisoning and the measures, which shall be taken by employers to protect their workers (see page 127). Article 131 The employer shall enclose all the moving parts of power generators and transmission gears, within a protective guard. He must also fence the manholes and all obstructions that may expose workers to dangers of falling or collision. Article 132 The employer shall be responsible for emergencies and incidents which may cause injuries to persons other than his workers, who may enter places of work by virtue of their official duties or by the approval of the employer, where such injury is caused by the employer negligence to take the technical precautions required by the nature of such a work , and shall compensate them for the damage they my suffer. Article 133 Every employer shall take the precautions required for fire fighting and to make available the technical measures for that purpose including the securing safety exits and to maintain them in serviceable conditions at all times. Article 134 First aid service shall be provided by the employer according to the standards determined by the Minister of Labor in collaboration with minister of health. The employer shall employ a nurse if his workers are more than fifty in single location or within a radius of fifteen kilometers. The employer shall assign a physician to examine and treat the workers at a place provided by the employer. Such service shall be free of charge whether it is during working hours or otherwise. In case treatment requires specialist or a surgical operation, the expenses shall be taken from social insurance fund. The cost of treatment, medicine or hospitalization in government of chainable

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hospitals, shall be determined pursuant to the decision made by the Minister of Labor in agreement with the minister of health or as provided in the rules of the social insurance organization. In case the number of worker is less than fifty workers, the employer shall provide them with a medical first aid cabinet containing bandages , medicines, and antiseptics that determined by the Minister of Labor in agreement with the minister of health in order to provide a first aid to workers. Margin Annotation: Minister of Labor issued decision No. 404 dated 17/6/1394H in regard of the measures for the medical aid in the places of work (see page 167). Article 135 Employer who employs more than fifty workers shall notify the labor office of the physician name whom he has selected for the treatment of his workers, and if the number workers more than one hundred, he shall notify the labor office of the names of they physicians and specialists whom he has selected for the treatment of his worker and also the names of hospitals designated by him for such purpose. And in all cases he has to notify the labor office on the minimum days fixed for examination of his worker provided that the minimum shall not to be less than three days a week. Article 136 Every employer shall prepare a medical file for each worker indicating the result of the examination performed to him signed by the worker upon employment and description of his illness and stages of treatment , period absence from work and whether it is an ordinary disease or a work injury. Article 137 The employer who employs more than fifty workers shall set a saving plan to be approved by the Ministry of Labor provided that the participation in such saving system shall be voluntary and to provide to them at his own expenses rest and recreation facilities as per the specifications decided by the Minister of Labor. If his workers are five hundred or more, the minister, after taking in consideration, the nature of working area and the number of workers, may decide that the employer shall carry out all or a part of the following at his own expenses: a. To provide at places of work shops for sale of food, cloth and others requirements for a suitable prices. b. To provide parks and playing fields and cultural libraries for the workers. c. To prepare medical arrangements for the protection of his workers and for the treatment of their legal dependants in consideration of the provisions of the social insurance regulations. d. To provide schools for education of workers children, and to provide adequate mosques in the places of work. e. To prepare programs to combat literacy among the workers. f. To prepare rules for employment, promotion and increments allowances to be agreeable to the Ministry of Labor.

Article 138 Concessionaires companies that entrust execution of its business of construction and maintenance to other contractors shall stipulate in their contracts that they are obliged satisfy the rights and assume all the obligations that occur to workers if the concessionaire company itself perform such works(1).

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Margin Annotation: The original works provided in Article 8 and Article 138 of this law, shall mean the normal activity for workers. As for companies it shall mean the original works for which the company was established to perform those works which are prescribed in the creation contract or in the concessionaire contract if the company is one of these companies. This is as per the decision of the Council of Ministers No. 19 dated 26/2/1400H (see page201). Article 139 The workers contracts working for Concessionaires companies shall be subject to the same basic rules applicable for workers of such companies and shall benefit from all grants, compensation and wage rates in force in such companies. Article 140 Concessionaires companies assume legal liability toward the workers of its contractors in application of the two preceding articles, and they may in return withhold the price of work in the manner as would guarantee such liability until the expiration of the contract. Article 141 In all contracts in which contractors fail to apply the rules of the preceding articles, the Minister of Labor and social affairs by decision based on the report of the chief of labor inspectors shall have the right to cancel such contracts following an investigations he shall conduct. Article 142 Every employer shall provide means of transport for his workers from place of residence or a given assembly points to place of work and return them daily if such places are not reached by ordinary regular means of transport. Article 143 With regard of workers who perform their work in places far from inhabited areas, (1) and especially, for those who work in mine quarries, centers of oil exploration, extraction or exploration, the employer shall be obliged through a decision issued by Minister of Labor and social affairs, to the following: a. To provide workers with adequate living quarters, so some of such quarters shall be assigned to married workers, conditions and specifications for such dwellings quarters as well as the rates chargeable to workers for using them shall be determined by a decision of the minister. b. To provide his workers with three meals a day at clean places that meet the sanitary requirements, quantities and kind of food and cost of each meal shall be determined by the decision of the Minister of Labor. The food should be served to workers hygienically wrapped. These meals may be replaced by any financial allowance. c. To provide his workers medical, social and cultural services determined by a ministerial decision. d. And with regard to those who perform works in exploration areas and living in camps, employer shall provide them with suitable camps free of charge, potable water, three meals a day in

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places prepared for that purpose, quantities and kind of food shall be determined by the minister and meals may not be replaced by any financial compensation. e. The worker may request in special medical care, upon recommendation of the physician, special food, and if his request is not satisfied, he may demand a financial compensation in lieu of the meal. Margin Annotation: The decision of the Minister of Labor No. 651 issued on 29/12/1401H has determined such areas as follows: (see page 147). Article 1: The inhabited quarter including all its towns, habitable areas, if any. The following areas, except for towns and places of work not far from inhabited areas for more than thirty kilometers, where there is a paved road, or not more than 25 kilometers where the road is rough, these areas and towns are: Western province except for following towns: Holly Makkah, Jeddah, Taif, Yanbu, Rabi, Al Madina Al Munawra, Ymluj, Dhbba, Alwajh, Hugal, Badre, Al Gunfudda, and Allath. Central province except for following towns: Riyadh, Diryah, Al-Kharaj, Liyla in Alaflaj, Shugra, Anyza, Burada, Al Myjmaa, Al Rus, Al Dawadmi, Afif, Murrat, Al, Gwaga, Durma, Huta Bani Tamim, Huta, Sudir, Al Silil, Al Harig, Alzulfi, Wadi Al Dawoser. Southern Province except for following towns: Abha, Khamis Mushait, Najran, Bisha, Dharan Al Gurab, AlNamas, Albaha, Blgurashi, Sabia, Abu Areish. Eastern Province except for following towns: Dammam, Khobar, Qatif, Sihat, Ras Tanura, Rahima, Abu Gag, Alkhafji, Al Jubail, Alhafouf, Almubrz, Althugba, Dharan, Safwi Northern Province except for following towns: Tabouk, Ara ar, Sikaka, Alhouf, Rafha, Hail, Algriyat, Tarif, Hafr Albatin. Article 2: By way of exemption, the rules of this decision shall not apply to the developing areas and town, and such areas shall be determined through a decision to be issued by the Minister of Labor and Social Affairs. Margin Annotation: The decision of the Minister of Labor No 89 issued on 10/3/1403H has determined the specifications and conditions of the workers quarters as follows: (see page 135). Article 1: Every employer who employs workers in areas far from inhabited areas specified in the referred to ministerial decision no. (651) dated 1401H, in particular in mines, extractions, oil exploration centers shall, in the workers quarters to be provided by him, the following conditions and specifications, without breaking valid rules and regulations. Article 2: The workers quarters shall be established away in a distance not less than one kilometer from

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industrial areas and places of work that produce materials that cause pollution like gases, dust, smoke and waste material. Article 3: The decision shall be effective as of the date of its publication in Um-Alqurra paper. Article 144 Every employer who employs more than fifty women shall entrust to a qualified female nurse to extend medical care to workers children under six years of age. CHAPTER 8 CREATION OF NEW ESTABLISHMENT Article 145 Any person who wishes to construct new buildings to use it as a new project, or to add an annexes to an existing mechanically-operated project, or to increase the automatic power in a running project, or to covert an existing building into mechanically-operated project, where he employ twenty workers, shall submit an application to the Ministry of Commerce and Industry (Industrial Research Center) in order to obtain a license and he shall attach the following: 1. A map of the site. 2. Design for the building. 3. Layout indicating the locations of the machinery, equipments and specifications. 4. Drawing for the equipments or its photographs. In addition to that, he shall submit any other information clarifying the nature of the work he shall carry out as will be requested by the Ministry of commerce and industry. Plans of the buildings must contain all details on locations of doors and windows and its dimensions, ventilation means, stair cases, fire escape doors, when the ministry id satisfied, it shall issue the final decision toward the issuance of the license , the ministry may seek the opinion of the ministry of Health in regard of health respect if necessary. Article 146 If the labor office finds that any building or part of it or machinery or devices of the establishment constitute a danger to human life or safety, and after consulting the ministry mentioned in previous , shall issue to the manager of the establishment a written order requesting him to make the necessary repairs within specified period and to submit technical report showing that he has made the repairs on time. The labor office may , in its written order, specify the protective measures deemed necessary to prevent any danger and it may prevent the use of the machines or building which constitute the source of danger until it is repaired or replaced. The manager of the establishment may, within thirty days from date of notification, appeal to the minister of commerce and industry, who shall, after consulting the ministry of commerce and industry, uphold, modify or cancel the order. Lodging the appeal shall not entail the suspension of the protective measure ordered by the labor office, not shall it entail stay of execution of the appeal order, unless the Minister of Labor decides otherwise.

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CHAPTER 9 WORKING HOURS - WEEKLY REST Article 147 Worker may not employed in an actual work for more than eight hours in any one day, or forty eight hours a week, in all the month of the year, except for the month of Ramadan, during which the working hours should not exceed six hours a day, thirty six hours a week exclusive intervals for prayer, rest or food. Working hours may be increased to nine hours a day in respect of certain categories or in respect of some industries and operation where the worker doesnt work continuously such as seasonal establishment, hotels, shops and restaurant and also, working hours may be reduced in respect of some categories and some hazardously or harmful works. Determination of such work refereed to above shall be made through decision from Minister of Labor. Margin Annotation: Royal Order No.454/8 dated 118/3/1405H (page 187). This Royal order decided that the reduction of working hours during Ramadan is for Moslems workers only. Article 148 The working hours shall be scheduled, that no worker shall work more than five consecutive hours without interval for prayer and food not less than half an hour in one time or an hour and a half during the total working hours, so that the worker shall not stay at the place of work for more than eleven hours in one day. In case of factories where work is performed in successive shifts day and night, the minister shall regulate granting of interval to workers. Article 149 Friday, is considered the official holiday, a day of rest with full pay, however, the employer may , through the approval of labor office, replace it by another day for some of his workers provided that the working days a shall not exceed seven days a week and workers shall be enabled to perform their religion duties. Article 150 In the following cases, the employer may not adhere to the provisions of Articles 147, 148, 149, of this law: a. Annual stock taking, balance sheet, liquidation, closing of accounts, preparation for reduced price sale, preparation for festive seasons, provided that the worker shall not remain in job in excess of the prescribed daily working hours for more than thirty days in one year. b. If the work is for preventing danger accident, repair of damage resulting from such danger to avoid certain loss of perishable mentioned. c. When the work is designed to cope with unusual pressure. In the last two cases a report shall be submitted to labor office within twenty four hours stating the emergency case and the period required for the completion of the work and to obtain a written confirmation in that regard. d. Holiday and festive seasons and occasions and seasonal operations as may be determined by the Minister of Labor, and in all foregoing cases, the actual working hours shall not exceed ten hours a day.

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Article 151 The employer shall pay the worker an equivalent of 50% to his normal wage for the additional work where such work is preformed in the weekly day of rest or on feast days or on the official holidays. Article 152 The provisions of Articles 147 and 148 shall not apply in the following cases: preparatory and supplementary operation which must be completed before or after the end of the day. a. Work which is necessarily intermittent. b. Worker assigned to watch or cleaning duties. c. Works in drilling or exploration for petroleum or mined in remote areas. d. Works determined in item (a, b, c,) of this article and the maximum hours decided by the Minister of Labor (1). However, the actual working hours for works shown in item (d) shall not exceed 48 hours a week. Margin Annotation: The decision of Minister of Labor No. (16) dated 18/1/1297H has decided the following in regard of the mentioned preparatory and supplementary works (see page 157). Article 1: 1. Preparatory and supplementary works shall mean such works which may be accomplished before or after the end of the working day, such as preparations of material and equipment required for practicing the work, or the delivery of materials from warehouses, maintenance of machinery and equipment, works based of shifting system, and other alike. 2. Work which is necessarily intermittent shall mean that work which is not performed continuously, and which consists of intervals, such work during which workers do not perform a continual activity, and it doesnt require regular attendance of worker, such as the job of the technicians who employed to repair, maintain or operate some machines, or those workers employed for loading and off-loading works, and railway and bus station traffic workers and others who practice jobs as such. 3. Worker assigned to watch or cleaning duties: First: Workers assigned to watch shall mean: 1. Workers assigned for to watch places, equipments or properties at night or day time, without being assigned to any other works that is not necessitated by the nature of the watch s during working hours. 2. Workers assigned to watch and operate machines of the potable water. Second: Workers assigned to cleaning works shall mean:

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LABOR AND WORKMEN LAW


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1. Workers who are assigned to secure cleaning to places of work during the working hours or during intervals provided that their continuous work shall not exceed six actual consecutive working hours. Article 2: The time for the preparatory and supplementary operation may not exceed thirty minutes to be added to the working hours. Article 3: The actual working hours for the work which is necessarily intermittent shall be ten hours a day, and shall be reduces to eight hours a day during the month of Ramadan, provided that the worker shall be granted a rest of not less than ten consecutive hours during every twenty four hours. The employer shall enable the workers to perform their prayers on time. Article 4: The actual working hours of the workers assigned to watch and cleaning shall be twelve hours a day and shall be reduced to nine hours during the month of Ramadan. The employer shall enable the workers to perform their prayers on time. Article 5: Application of this decision shall not prejudice the acquired rights of the workers subject to its rules, such rights which are provided in any other regulation, rules or contract, juridical order, decision or previous agreement. Article 6: To be published on the official paper (1). (1) The actual working hours for civil guards has been determined through the decision of the Minister of Labor and social affairs No.(142) dated 21/99/1416H (see page 205) Article 1: The actual working hours for the civil guard who are subject to rules of the Royal Decree No (7) dated 22/1/1413H, shall not exceed eight hours a day , except for the month of Ramadan during which it shall reduced to six hours a day. Article 2: The deputy Minister of Labor and social affairs shall notify those who must put the decision in force. Article 153 Every worker who has spent on year in the service of the employer shall be entitled to an annual vacation of fifteen days with full pay paid in advance. It shall be increased to twenty one days when the worker completed ten continuous years in service. The worker through the acceptance of the employer, may defer his vacation or part of it to the following year, and he may not forgo his annual vacation. The employer shall have right to choose the dates of such vacations according to the requirements of the work, or to grant them on rotational basis in order to ensure the running of his business.

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Article 154 The worker shall have the right to obtain his pay for the unused days of the vacation due if he leaves the work before enjoying it, and he shall be entitled to the pay of the fraction of the year in the proportion to that part of the year he spent in work. Article 155 Every worker shall have the right to enjoy a vacation with full pay in the official holidays that determined by the decision of the labor and shall not exceed ten days a year. Holidays were determined by the decision of the Minister of Labor No.(813) dated 16/11/1394H (see page 163). Article 1: Three days for Lesser Bairam and shall commence on 29th of Ramadan as per Um Al Qura calendar. Four days for the Greater Bairam, and commence on Arafat Day National Day of the Kingdom, commences on the first of Mizzan. Article 2: If the employer wishes to increase the number days of the holidays rather than what is determined in article 1. He shall decide that before or after the dates determined in that article and shall distribute it before and after the said dates in the direction that achieves the work interest. Article 3: This decision shall not deprive the workers rights acquired through any other regulations or agreement, or contract of work or according to customs and habits or others. Article 156 The worker may obtain an unpaid vacation not to exceed ten days per year conditioned by the approval of employer. Article 157 The worker, while enjoining his vacation, is not allowed to work for another employer, if such violation is proved, the employer may deprive him from his wage for the vacation period or recover any vacation pay paid to him. Article 158 The employer who employs more than twenty workers, shall grant the worker a sick leave for the first thirty days with full pay, and with three quarters of the pay for the following sixty days during one year, provided that the illness shall be certified through a medical certificate issued by a competent physician approved by the employer. Article 159 The worker shall be entitled to three days vacation for his marriage and one day for the following cases: 1. In the event a child is born for him.

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2. In the event of death of the wife or any of his ascendants or descendants. 3. The employer shall have the right to request the worker to furnish documents in confirmation for the said events. CHAPTER 10 EMPLOYMENT OF JUVENILE AND WOMEN FIRST: COMMON RULES Article 160 Adolescent, juvenile and women may not be employed in hazardous or harmful industries such as power-operated machinery, mines, quarries, and the alike. The Minister of Labor shall specify such works that are regarded as harmful, or may expose women or juvenile or adolescent to given hazards, requiring prohibition of their employment in such works or to be restricted by special conditions. Communications of men and women at places of work is not allowed in all cases. Article 161 Adolescent, juvenile and women may not be employed during night time between sunset and sunrise except in cases specified by the Minister of Labor and in case of force majeure. Article 162 Adolescent, Juvenile and may not be employed for a period that exceeds six hours a day, and exceptions provided in Articles 150 and 152 of this law are not applied to them. SECOND: EMPLOYMENT OF JUVENILE Article 163 The Juvenile who has not completed thirteen years of age shall not be not employed nor enter the place of work. The Minister of Labor may raise the age limit for some industries or some areas. The employer and before employing the Juvenile, shall secure from him the following: 1. Birth certificate or age estimation certificate issued by a competent physician and approved by ministry of health. 2. Certificate of physical fitness issued by a competent physician and approved by ministry of health. 3. Approval of the juvenile guardian. Where the employer employs a juvenile, shall notify the labor office within the first week from date of employment. And to keep an appropriate file for him indicating the name of the juvenile, age, full name of the guardian, residence, date of hiring, that is in addition to the record provided in Article 10 of this law. THIRD: EMPLOYMENT OF WOMEN Article 164

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LABOR AND WORKMEN LAW


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The workwoman shall be entitled to maternity leave for the four weeks preceding the expected delivery date and six months following that date. Probable date for delivery shall be determined by the physician of the establishment or by medical certificate issued by ministry of health. The employer may not employer employ a workwoman during the six weeks immediately following her delivery. Workwoman shall be paid half pay during their absence in case she has been in the service of the employer for one year and with full bay if she has been to work for more than three years from the date of the commencement of the leave. The workwoman shall not be entitled a paid normal vacation provided for in this rules if she had made use of the maternity vacation in full pay in the same year, and shall be paid half payment if she made use of maternity vacation with half pay. Article 165 The workwoman shall be entitled, after her return from the maternity leave, in purpose to feed her baby, intervals totaling to not more than an hour a day, in addition to other intervals granted for all. Article 166 The employer shall bear the expenses of the medical examination, treatment and delivery. Article 167 The employer may not terminate the workwoman during vacation period of pregnancy or maternity. Article 168 The employer may not terminate the workwoman during the period of her illness resulting by pregnancy or delivery, such illness shall be confirmed by certified medical certificate, provided that it shall not exceed six months. She may not be terminated without a legal reason, such reason provided in this law, during the immediate six months preceding the excepted date for delivery. If the workwoman is terminated in violation of the rules of this article, the appropriate commission shall order her reinstatement. Article 169 The workwoman shall not be entitled her rights acquired by the provisions of this chapter if proved that she had worked for another employer during her approved leave. The employer in this case may deprive her vacation pay or recover from her amounts he paid for that regard. Article 170 By way of exception, provisions that prohibit or restrict the employment of adolescents juvenile and women shall not apply the charitable or official institutes with vocational character, provided that nature of work, working hours, conditions, suitability for heath capability of workers shall be determined and such rules shall be approved by the ministry after consulting the opinion of the ministry of health. Article 171 In all places of work and occupations, where women perform a work, seats shall be provided to secure comfort to them.

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LABOR AND WORKMEN LAW


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CHAPTER 11 LABOR COMMISSIONS AND SETTLEMENT OF DISPUTES Article 172 Labor Commission and Settlement of disputes shall be: 1. Primary committees for settlement of disputes. 2. Supreme committees for settlement of disputes. Article 173 The primary committees shall be formed in labor offices or branches according to the selections the Minister of Labor. The committee shall be composed of three members experienced in legal matters. At least, the chairman and one of the other members shall be graduated in shuria. Article 174 The primary committee shall be authorized to First: Render final decision on: 1. Workers disputes that doesnt exceed SR 3000. 2. Disputes relate to stay of execution raised according to the rules of this law. 3. Disputes relate to imposed fines or the application for exemption of the same. Second: To render final decision on: 1. Workers disputes exceeding SR 3000. 2. Disputes relate to work injuries whatsoever its value is. 3. Disputes relate to dismiss. Article 175 The supreme committee for settlement of disputes shall be constituted by decision of Council of Ministers, of five members, three to represent Ministry of labor and social affairs, one to represent the ministry of commerce and industry and one for the ministry of petroleum and minerals resources. The decision shall name one of the members as Chairman of the committee. The chairman and the members of the committee shall be impartial and well experienced in legal matters. Article 176 The supreme committee is exclusively authorized to render final decisions in all disputes raised before it and to apply to violators the fines provided for in this law. Article 177 The Council of Ministers shall issue the regulations of appeal and arbitration and conciliation before the primary and supreme committees. The Minster of labor shall issue decision for the constitution

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of an office for each committee and to indicate the number of clerks. Attendants, employees, administrators assigned to perform such work. Article 178 The supreme and the primary committees shall issue their decision by majority vote of their members, such decision shall be justified and signed by all members, and who dissent shall mention hi reasons for such dissention. Article 179 The committee has the exclusive right to hear all disputes of contracts of work, and to present persons for investigations, and it may request presentation of documents and evidences and to take required procedure in that regard. The committee shall have the right to access any place occupied by any establishment in order to perform investigations as required according to the provisions of this law. Article 180 Suits shall be raised to the primary committee. The committee shall issue its decision within the period limits as per the rules of Article 177. If one of the parties wishes to appeal to the decision of the primary committee, such party shall submit his application to the Supreme committee within thirty days from date on which he received the notification about the decision. Article 181 The chairmen of the committee shall date for hearing within fifteen days and the concerned committee shall promptly issue its decision within not more than thirty days from the date of the first hearing. Article 182 If the decision of the primary committee is not appealed to within the limited period as provided in Article 180, it shall become final and must be executed. The decisions of the supreme committee shall be executed immediately after being notified to the concerned parties and the dispute parties shall be obliged to execute the conciliation decision once it is registered to one of the authorized committees. Article 183 In all cases the dispute parties shall have the right to appoint in agreement one arbitrator for each party or one or more arbitrator for each party to rule the dispute in lieu of the committee provided for in this chapter. If agreement is not reached in selecting an umpire, the chairman of the primary committee shall appoint the said umpire if not already appointed through the decision document. Time limits and rules to be followed in such procedures shall be mentioned. The agreement of arbitrators shall be an instance decision and appealable before the supreme committee within the periods and rules provided for the appeal before such committee, unless otherwise stated clearly in the decision of the arbitrators, then theirs shall be concluded. Copy of the decision document shall be filed to the primary committee within a week form date of issuance. Article 184

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The agreements reached by the arbitrators shall be executed after being registered to the appropriate primary committee after approval of the chairman of it. Article 185 The committees provided in this chapter shall not abstain issuing their decision on the grounds that there is no applicable text, and it must in such cases implement the principles of Islamic rules, established judicial procedures, usage and rules of right and equity. Article 186 Any of the parties may not raise again the dispute of which a decision was issued by one of the committees provided in this chapter. Article 187 The employer may not change the terms of the contract during the procedures of the conciliation or arbitration, or impose penalty on him or dismiss him without a written permission issued by the appropriate committee. Article 188 If the primary committee is not constituted in a given area, the minister may assign its tasks and duties to the nearest constituted committee. CHAPTER 12 - PENALTIES Article 189 1. Any person who forms a league with a group of other persons in purpose to stopping: a. Means of transportation between the towns of the kingdom or between the kingdom and other countries. b. c. Postal or telegrams or telephone communication. Any of public establishment, especially those concerned with distribution of water, electricity or principal food stuff.

Shall be punished with imprisonment for a term of one month to one year or a fine of SR 1000 to SR3000 or with both penalties. 2. The same punishment shall apply to any of the concessionaire of the above-mentioned establishment who stops operating such services without a valid reason. 3. If the crime accompanied by violence act upon others or by threatening or by other means of or by measure of deceit or by false affecting mind, or by gathering in public roads, or by occupying places of work, such offenders shall be punished with imprisonment for a term of six months to two years or with fine of SR 1000 to SR 5000 or both. Article 190

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Whoever by using one of the means mentioned in the last paragraph of the previous article causes or attempts to cause in agreement among themselves or encourages them or attempts to encourage them to stop the work shall be punished with imprisonment for the term of one year to three years or with fine of SR 5000 to SR 10000 or both. Article 191 If the employer or the head of the enterprise stops the work in order to put pressure on the local authorities or protesting against a decision or orders issued by such authorities instead of seeking legal measures, shall be punished with imprisonment for the term of two years to six years or with fine of SR 4000 to SR 10000 or both. Article 192 Without prejudicing the rules of other laws and regulations provided to who may prevent an official from discharging his legal duties, whoever violated the provision of Article 26 of this law shall be punished with a fine of SR100000 and shall be doubled if the offense is repeated. Article 193 Whoever violates the provisions of Article 41 of this law shall be punished with a fine not less than SR 500 and not more than SR 1000. Article 194 Whoever violates the provisions of Article 44 of this law shall be punished with a fine not less than SR 500 and not more than SR 1000. Article 195 Whoever violates the provisions of Article 44 of this law shall be punished with a fine not less than SR 500 and not more than SR1000. Article 196 Whoever violates the rules provided in Article 49 of this law that govern bringing foreigners into the country in purpose of employment shall be punished with a fine not less than SR 500 and not more than SR 1000. Article 197 Whoever violates the rules relate to vocational training of Saudis in order to replace them with foreigners, provided for in Article 50 of this law shall be punished with a fine not less than SR 500 and not more than SR 1000 for each worker. Article 198 Whoever violates the rules of chapter five of this law shall be punished with a fine not less than SR 500 and not more than SR1000. Article 199 Whoever violates the rules of wages provided for in Article 116 of this law shall be punished with a fine of SR200 for each worker and shall be ordered to recover differences for all.

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Article 200 The employer or any responsible who violates any of the provisions of chapter six shall be punished with a fine of SR200 for each worker. Article 201 The employer or any responsible who violates any of the provisions of chapter seven or any other regulations or decisions or orders shall be punished with a fine not less than SR500 and not more than SR 1000 for each offense. Article 202 Whoever violates any of the rules of chapter eight shall be punished with a fine of SR 1000 or with shutting down the establishment or stopping the new constructions. The appropriate labor office shall seek the assistance of the administrative authorities in of executing such decisions. Article 203 The employer or the manager of the establishment who violates any of the provisions of chapter nine or any other regulations or orders shall be punished with a fine not less than SR 500 and not more than SR1000 for each offense. Article 204 If the employer violates any of the provisions of chapter ten shall be punished with a fine not less than SR 500 and not more than SR1000 for each offense. Article 205 Any employer or a head of enterprise or a worker who refuses or delays a decision of arbitration committee, or any other decision issued by one of the committees provided for in chapter eleven of this law, the punishment that imposed on him, if any, shall be doubled, or he shall be punished with a fine not less than SR 500 and not more than SR1000 or with imprisonment for a term not more than three months or both. Article 206 In consideration of the provisions of Article 78 of this law, any worker who refuses in cases of necessity to work in elsewhere than the original place of his residence or to perform a work different than the work provided in the contract shall be punished with fine not more than SR100. Article 207 The employer or the responsible manager shall be punished for any violations in regard of any of the provisions, rules, orders or decision of this law, where penalty is not provided, with a fine of not less than SR100 and not more than SR500. The provisions of this law shall apply unless severe penalties are provided in other regulations. All fines shall be deposited in workers social insurance fund in special account in order to be spent on the projects set for upgrading of workers standards in the Kingdom and according to the decisions of the Minster of Labor.

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Article 208 Demotion may not apply to the workers class nor his wage shall be decreased except in cases where provided for in this law or the related decisions. CHAPTER 13 CONCLUDING PROVISIONS Article 209 The Minister of Labor shall issue decisions and regulations required for the implementation of this law except where other authority has been designated for such a purpose. Article 210 The labor and workers law issued on 25/11/1366H as well as all regulations and orders and decisions in effect prior to the coming into force of this law are hereby replaced in so far as they are not in contradiction with the provisions of this law. Article 211 This law shall be effective as of the date of its publication in the official gazette.

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