Month: June 2023

What you’ll learn

• Country Introduction
• Social Security and Employee contribution
• End of service
• Probation Period & Termination of Indefinite Contract
• Termination of Contract Post Probation Period
• Working hours
• Sick leave
• Maternity leave
• Medical insurance

Kuwait Introduction

Kuwait is a country located in the Middle East, bordered by Saudi Arabia and Iraq. Known for its rich oil reserves, Kuwait has a prosperous economy. As an employer in Kuwait, it’s essential to understand the local regulations and employment practices.

Social Security and Employee contribution

Expatriate working in Kuwait are exempted from tax

End of service

The worker shall be entitled to a 15 days remuneration for each of the first five years of service and one month remuneration for every year thereafter. The total of the end of service benefit should not exceed one and a half year remuneration. The worker shall be entitled to a benefit for the fraction of the year in proportion to the period of service.

Probation Period & Termination of Indefinite Contract

The probation period of the worker shall be specified in the work contract, provided that it shall not exceed 100 working days. Either party may terminate the contract during the probation period without notice. In the event where the termination is made by the employer, he shall pay the worker’s end of service benefit for the period of work. The worker shall not be on probation more than once for the same employer

Termination of Contract Post Probation Period

In the event where the term of the work contract is not specified, both parties shall have the right to terminate the same by means of a notice of three months prior to the termination of the contract.

In the event where the party wishing to terminate the contract does not abide by the period of notice, he shall be obliged to pay the other party a compensation for the notification period equal to the remuneration of the worker for the same period.

In the event where the notification of termination is issued by the employer, the worker shall have the right to be absent one day or 8 hours per week in order to search for other work. He shall also be entitled to his remuneration for the day or hours of absence. The worker shall decide on the day or hours of absence and shall notify the employer at least one day prior to such absence.

The employer may exempt the employee from work during the period of notification while but shall count such period within the worker’s period of service. The employer shall pay the worker all his entitlements and remuneration for the period of notification.

Working hours

it is forbidden to allow workers to work for more than 48 hours per week or 8 hours a day

Sick leave

During the probationary period, the employee is not entitled to any paid sick leave. the worker shall be entitled to the following sick leaves during the year:

• 15 days – at full pay
• 10 days – at three quarters of the pay
• 10 days – at half pay
• 10 days – at quarter pay
• 30 days without pay.
• The worker shall provide a medical report from the doctor appointed by the employer or the doctor of the government medical center.

Maternity leave

A pregnant working woman shall be entitled to a paid maternity leave of 70 days, not included in her other leaves, provided that she gives birth within this period.

Medical insurance

Medical health insurance is not mandatory to be provided in Kuwait

Partner with Masdar for Streamlined EOR Services in Kuwait

With our comprehensive EOR services, you can elevate your business operations, cultivate a productive workforce, and ensure compliance with Kuwait’s labor regulations. Entrust your HR management and payroll processing to Masdar and experience the convenience and efficiency of our top-notch services. Contact us today to learn more about how our EOR services can benefit your business in Kuwait.

 

What you’ll learn

• Country Introduction
• Social Security and Employee contribution
• End of service
• Probation Period & Termination of Indefinite Contract
• Termination of Contract Post Probation Period
• Working hours
• Sick leave
• Maternity leave
• Medical insurance

Oman Introduction

Oman is a country located in the Middle East, bordered by the United Arab Emirates, Saudi Arabia, and Yemen. It is known for its rich history and diverse landscapes. Oman has a developing economy and offers several opportunities for businesses.

Social Security and Employee contribution

Expatriate working in Oman are exempted from tax

Local Omani National are subject to the following social security contribution

• 8% Employee contribution
• 12.5% Employer contribution

End of service

A worker shall on the termination of the contract be eligible for a post service gratuity in the amount of the wage of fifteen days for each year of service for the first three years, and the wage of one month for each of the following years.

Probation Period & Termination of Indefinite Contract

• A worker shall not be placed on probation for a period exceeding three months.
• A worker shall not be placed on probation more than once with the same employer.
• In all cases the probationary period, if any, shall be specified in the contract of service.
• Any one of the parties may, after a notice of not less than seven days to the other party, terminate the contract during the probationary period, if it becomes clear that continuation in employment is not suitable.

Termination of Contract Post Probation Period

Any one of the parties may terminate the employment contract after giving a written notice to the other party thirty days before the termination date unless a longer period is agreed to in the contract. If the contract is terminated without observation of such notice period, the party who terminates the contract will be obliged to pay to the other party compensation equal to the Gross Wage for the notice period or the remaining part thereof.

Working hours

The maximum normal working hours for adult employees shall be nine hours per day or forty-five hours per week.

Sick leave

During the probationary period, the employee is not entitled to any paid sick leave. The worker whose illness is certified shall be entitled to a sick leave the total of which shall not exceed ten weeks during one year irrespective of whether it is divided or continuous and it shall be granted as follows:

• The first and second weeks with full pay
• The third and the fourth weeks with three quarters of the Gross Wage.
• The fifth and the sixth weeks with a half of the Gross Wage.
• The seventh week and up to the tenth week with a quarter of the Gross Wage.
• The sickness shall be proved by a medical certificate. A sick worker may exhaust his annual leave besides the sick leave he is entitled to

Maternity leave

A female employee shall have the right to a special fifty-day maternity leave covering the periods before and after delivery with full salary for not more than three times during her service with the employer

Medical insurance

Medical health insurance is not mandatory to be provided in Oman.

Partner with Masdar for Streamlined EOR Services in Oman

With our comprehensive EOR services, you can enhance your business operations, cultivate a productive workforce, and ensure compliance with Oman’s labor regulations. Entrust your HR management and payroll processing to Masdar and experience the convenience and efficiency of our top-notch services. Contact us today to learn more about how our EOR services can benefit your business in Oman.

What you’ll learn

• Country Introduction
• Social Security and Employee contribution
• End of service
• Probation Period & Termination of Indefinite Contract
• Termination of Contract Post Probation Period
• Working hours
• Sick leave
• Maternity leave
• Medical insurance

Qatar Introduction

Qatar is a country in the Middle East region bordered by Saudi Arabia. In recent years, the country has emerged as a middle power in the Arab world through its resource-wealth. Qatar is considered one of the richest countries in the world, and there is no income tax for non-companies.

Social Security and Employee contribution

Expatriate working in Qatar are exempted from tax

End of service

The worker shall be entitled to three-week Remuneration for every year of employment. The Worker shall be entitled to gratuity for the fractions of the year in proportion to the duration of employment.

Probation Period & Termination of Indefinite Contract

The probation period shall not exceed six months from the date of commencement of the Work. Employers may not put Workers under probation, with the same Employer, more than once.

Employers may terminate the Employment Contract before the expiry of the probation period if the Worker fails to carry out his/her duties as per the Employment Contract. Employers shall notify Workers of this decision within at least three days from the termination date of the contract.

Termination of Contract Post Probation Period

In this case the party interested in termination of the Employment Contract shall notify the other party in writing before one month from the date of termination of the Employment Contract if the service period is five years or less. If the service period is more than five years, the period of notification shall be two months at least.

If the Employment Contract is terminated without observing these periods, the party terminating the Employment Contract shall be obliged to compensate the other party for an amount equivalent to the full Remuneration for the notice period or the remaining part thereof.

Working hours

The maximum ordinary working hours shall be forty-eight hours per week, at the rate of eight hours per day

Sick leave

The Worker shall be entitled to sick leave with pay for each year of his service. This sick leave shall not be granted unless after the expiry of three months from the date of commencement of his work for the first time, provided that the Worker proves his sickness by a medical report issued by the competent physician approved by the Employer.

The Worker shall receive his full Remuneration if the period of the sick leave did not exceed two weeks.

If the sick leave extends thereafter the Worker shall be paid half of his Remuneration for other four weeks.

The extension of the sick leave thereafter shall be without Remuneration until the Worker resumes his Work or resigns or his service is terminated for health reasons.

Maternity leave

A female Worker who has spent a whole year in service with the Employer shall be entitled to maternity leave with full Remuneration for a period of fifty days including the prenatal (antenatal) and postnatal periods, provided that the postnatal period is not less than thirty-five days.

Medical insurance

Medical health insurance is not mandatory to be provided in Qatar

Partner with Masdar for Streamlined Services in Qatar

With our comprehensive services, you can elevate your business operations, cultivate a productive workforce, and ensure compliance with Qatar’s labor regulations. Entrust your HR management and payroll processing to Masdar and experience the convenience and efficiency of our top-notch services. Contact us today to learn more about how our services can benefit your business in Qatar.

What you’ll learn

• Country Introduction
• Social Security and Employee contribution
• End of service
• Probation Period & Termination of Indefinite Contract
• Termination of Contract Post Probation Period
• Working hours
• Sick leave
• Maternity leave
• Medical insurance

Bahrain Introduction

Bahrain, officially known as the “Kingdom of Bahrain” is an island country located in the Persian Gulf. It comprises a small archipelago made up of 50 natural islands and 33 artificial islands, centered around Bahrain Island which makes up ~83% of the country’s landmass. Bahrain has the fastest-growing economy in the Arab world and wants to encourage technological innovation within the country.

Social Security and Employee contribution

Expatriate working in Bahrain are subject to social security contribution as follow:

• 4% Employer contribution with a cap 160 BHD

Local Bahraini National are subject to social security contribution as follow:

• 8% Employee contribution with a cap of 320 BHD
• 7% Employer contribution with a cap of 280 BHD

End of service

A worker shall be entitled upon the termination of his employment to a leaving indemnity at the rate of half month’s wage for each of the first three years of employment and one month’s wage for each of the following years in service. A worker shall be entitled to receive his leaving indemnity for fractions of the year in proportion to the period spent at the employer’s service.

Probation Period & Termination of Indefinite Contract

• A worker may be employed under a probationary period if expressly provided for in the contract of employment, provided that the probationary period shall not be more than 3 months. However, a probationary period may be increased up to a maximum of six months.
• Either party to a contract of employment may terminate it during the probationary period if it becomes evident that its continuance is not appropriate, provided that the party terminating the contract gives at least one day notice to the other party.
• No worker shall be employed under probation more than once by the same employer.

Termination of Contract Post Probation Period

• Either party to a contract of employment may terminate it upon giving the other party thirty days’ prior notice and such contract shall remain effective during the notice period and the parties thereto shall be bound by all the obligations arising therefrom. If the contract is terminated by the employer, agreement may be reached that the notice period shall be more than 30 days.
• If a contract of employment is terminated without complying with the notice period, the party that terminates the contract shall pay to the other party compensation for such notice period equivalent to the worker’s wage for the entire notice period or the remainder thereof, as the case may be. If the termination takes place by the employer, the notice period or the remainder thereof shall be reckoned as part of the worker’s service period. If termination takes place by the worker, the contract shall be terminated as from the date of leaving his job duties.
• If notice of termination of the contract is given by the employer, a worker shall be entitled to go absent from work for a whole day in every week or for 8 hours during the week to look for another job, provided that absence shall take place at an appropriate time for the conditions of business and the worker shall be entitled to receive his wage for the days or hours of absence.

Working hours

The maximum normal working hours for adult employees shall be eight hours per day or forty-eight hours per week.

Sick leave

During the probationary period, the employee is not entitled to any paid sick leave. The worker shall be entitled to the following sick leaves during the year:

• 15 days – at full pay
• 20 days – at half pay
• 20 days without pay.

Maternity leave

A female worker shall be entitled to maternity leave on full pay for sixty (60) days which shall include the period before and after her confinement provided she produces a medical certificate attested by a government health Centre or one of the clinics approved by the employer stating the expected date of her confinement. A female worker may obtain an additional leave without pay due to her confinement for a period of fifteen (15) days in addition to the aforesaid leave

Medical insurance

Medical health insurance is not mandatory to be provided in Bahrain.

Partner with Masdar for Streamlined EOR Services in Bahrain

With our comprehensive EOR services, you can elevate your business operations, cultivate a productive workforce, and ensure compliance with Bahrain’s labor regulations. Entrust your HR management and payroll processing to Masdar and experience the convenience and efficiency of our top-notch services. Contact us today to learn more about how our EOR services can benefit your business in Bahrain.

What you’ll learn

• Country Introduction
• Social Security and Employee contribution
• End of service
• Probation Period & Termination of Indefinite Contract
• Termination of Contract Post Probation Period
• Working hours
• Sick leave
• Maternity leave
• Medical insurance

Saudi Arabia Introduction

Saudi Arabia is a country in the Arabian Peninsula bordered by Jordan, Iraq, Kuwait, Qatar, the United Arab Emirates, Oman, and Yemen. Saudi Arabia is considered both a regional and middle power with the largest economy in the Middle East. The country has a very high Human Development Index, and offers tuition-free university education, no personal income tax, and a free universal health care system.

Social Security and Employee contribution

Expatriate working in KSA are subject to the following social security contribution

• 2% Employer contribution with a cap 900 SAR

Local Saudi National are subject to the following social security contribution

• 9.5% Employee contribution
• 11.75% Employer contribution

End of service

The worker shall be entitled an amount equivalent to fifteen-day wage for each year of the worker’s employment

Probation Period & Termination of Indefinite Contract

A probation period shall be expressly stated and clearly indicated in the work contract, provided that such probation period shall not exceed 90 days, exclusive of Eid Al-Fitr and Eid Al-Adha holidays and sick leaves. The probation period may be extended by written agreement between the worker and the employer, provided that it shall not exceed 180 days. Each party shall have the right to terminate the contract during this period, unless the contract contains a provision giving the right to terminate the contract to only one of them

Termination of Contract Post Probation Period

Either party may terminate it for a valid reason to be specified in a written notice served to the other party prior to the termination date as specified in the contract, provided that such period is not less than 60 days

Working hours

A worker may not actually work for more than nine hours a day , or more than forty-five hours a week if he uses the weekly criterion

Sick leave

A worker whose illness has been proven shall be eligible for a paid sick leave for the first 30 days, three quarters of the wage for the next 60 days, and without pay for the following 30 days, during a single year, whether such leaves are continuous or intermittent

Maternity leave

Female workers shall be entitled to fully paid maternity leave for a period of 10 weeks to be divided at the female worker’s discretion. Such period may start four weeks prior to the expected date of delivery. Expected date of delivery shall be determined pursuant to a medical report certified by a health authority

Medical insurance

Medical health insurance is mandatory to be provided by employer in KSA

Partner with Masdar for Streamlined EOR Services in Saudi Arabia

With our comprehensive EOR services, you can elevate your business operations, cultivate a productive workforce, and ensure compliance with Saudi Arabia’s labor regulations. Entrust your HR management and payroll processing to Masdar and experience the convenience and efficiency of our top-notch services. Contact us today to learn more about how our EOR services can benefit your business in Saudi Arabia.

What you’ll learn

• Country Introduction
• Social Security and Employee contribution
• End of service
• Probation Period & Termination of Indefinite Contract
• Termination of Contract Post Probation Period
• Working hours
• Sick leave
• Maternity leave
• Medical insurance

United Arab Emirates Introduction

United Arab Emirates (UAE) is a country in the Middle East region bordered by Oman and Saudi Arabia. Dubai is the country’s most populous city and is considered a major international hub with many digital nomads choosing to work in Dubai. Ever since oil was discovered in the area in 1958, the country has had rapid growth in infrastructure, healthcare, and technology, and a tourism industry that sees over 20 million tourists visiting Dubai and Abu Dhabi.

Social Security and Employee contribution

Expatriate working in UAE are not subject to income tax

End of service

A worker who has completed one or more years of continuous service shall be entitled to severance pay at the end of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows:

• 21 days wage for each of the first five years of service.
• 30 days wage for each additional year of service provided always that the aggregate amount of severance pay should not exceed two year’s wage.

Probation Period & Termination of Indefinite Contract

A worker may be employed on probation for a period not exceeding six months, during which the employer without notice or severance pay may terminate his services. A worker shall not be placed on probation more than once with the same employer.

Termination of Contract Post Probation Period

Either the employer or the worker may terminate an indefinite term contract for a valid reason at any time following its conclusion, by giving the other party a notice in writing at least 30 days prior to termination.

Working hours

The maximum normal working hours for adult workers shall be eight hours in the day, 48 hours in the week.

Sick leave

A worker who contracts illness after completing three months, following the probationary period, in the continuous service of an employer shall be entitled to a sick leave not exceeding 90 days, successive or otherwise, in respect of each year of service, to be calculated as follows.

• The first 15 days: with full pay.
• The next 30 days: with half pay.
• Any subsequent periods: without pay.

Maternity leave

A female worker shall be entitled to maternity leave with full pay for a period of forty five days, including both pre and post natal periods, provided that she has completed not less than one year of continuous service with her employer. A female worker who has not completed the aforesaid period of service shall be entitled to maternity leave with half pay.

Medical insurance

Medical health insurance is mandatory to be provided by employer in UAE.

Partner with Masdar for Streamlined EOR Services in the UAE

With our comprehensive EOR services, you can elevate your business operations, foster a productive workforce, and ensure compliance with UAE labour regulations. Entrust your HR management and payroll processing to us, and experience the convenience and efficiency of our top-notch services. Contact us today to learn more about how our EOR services can benefit your business in the UAE.