Online registration of labor contracts becomes mandatory in Saudi Arabia
August 05,2019
The Ministry of Labor has recently issued ministerial resolution number 156309 dated 18/08/1440 H (April 24 2019), which initiates the electronic contract registration program. The registration service will be provided via the General Organization for Social Insurance (GOSI) online portal.
According to the minister’s decision, it is mandatory for employers to document electronically any new contracts signed with workers. As for the contracts signed earlier, they can be documented in phases set by the ministry on a time-bound basis in accordance with the size of the firms and the number of employees. The schedule for uploading contracts is as follows:
|
Employer size |
Registration start date |
Implementation Schedule |
|||||
|
3rd quarter (2019) |
4th quarter (2019) |
1st Quarter (2020) |
2nd quarter (2020) |
3rd quarter (2020) |
4th quarter (2020) |
||
|
Giant - (more than 3000 employees) |
02/08/2019 01/12/1440
|
20% |
50% |
100% |
|||
|
Large - (2999-500 employees) |
29/10/2019 01/03/1441 |
20% |
50% |
100% |
|||
|
Medium (499-50 employees
|
26/01/2020 01/06/1441 |
20% |
50% |
100% |
|||
|
Small (49-1 employees) |
23/04/2020 01/09/1441 |
20% |
50% |
100% |
|||
Please note that if Employers not complying with the above timeframes, employees are permitted to transfer their employment to a new employer, without their current employer's approval.
Employers should also consider whether their current employment contracts are compliant with the Saudi labor law and include the relevant mandatory clauses.
If you require further assistance of information please contact us at info@khazindarlaw.com.