Further changes to Saudi laws have been released and there are a number of aspects that each employer needs to know. These will be affecting the day to day interaction between the employee and the employer, make sure you familiarise yourself with the changes. If in any doubt, please contact Tools and Solutions for an update.

The reasons and grounds to dismiss an employee have changed. Originally the law had 5 main reasons where the contract can be expressing terminates. New aspects have been added, that could result in a dismissal of an employee, and these include:

• • If the business is closed or goes bankrupt

• • The role and duties performed by the employee are no longer required due to a change in business environment, operation or due to autorotation or outsourcing, or any other similar reasons.

• • Any other reason that is not in contradiction with the current laws.

While these changes are not departing from the reasons that have been already in the law, they provide a further expansion and clarity on reasons of dismissal.

The employee compensation due to injury at work have been expanded and strengthened. The compensation has been expanded from the current 30 days of full pay to a 60 day period. Meaning that employee is now entitled to 60 days of full pay compensation should they be unable to work due to injury. Saudisation requirements have been strengthened as well. Now, the employers who have 50 or more employees are required to reserve a quota of 12% to Saudi nationals. Employers are also required to provide sufficient and necessary training to Saudi employees should they be unable to complete their duties due to lack of skill or knowledge. Further changes to Saudi laws have been released and there are a number of aspects that each employer needs to know.