Category: Uncategorized

In a significant revelation highlighting the Kingdom’s burgeoning tourism sector, Saudi Arabia’s Minister of Tourism has disclosed expectations of nearly 100 million tourist visits for the current year. This ambitious forecast reflects a transformative shift in the nation’s tourism landscape and underscores its increasing allure as a global travel destination.

Unveiling Saudi Arabia’s Tourism Potential

Saudi Arabia boasts diverse landscapes, rich cultural heritage, and ambitious development plans, positioning it as a premier tourist destination. From the stunning Red Sea coastline to the historic sites of Al Ula and the modern cities of Riyadh and Jeddah, the Kingdom offers a wealth of experiences to attract visitors from around the world.

Vision 2030: Driving Tourism Development

Central to Saudi Arabia’s tourism growth is Vision 2030, an initiative led by Crown Prince Mohammed bin Salman aimed at economic diversification and social progress. Recognizing tourism’s potential to drive growth and showcase the Kingdom’s heritage, Vision 2030 focuses on unlocking tourism assets, creating job opportunities, and promoting cultural exchange.

Infrastructure Investments and Policy Reforms

To realize its tourism ambitions, Saudi Arabia is investing in infrastructure and implementing policy reforms. This includes developing resorts, enhancing entertainment offerings, streamlining visa processes, and improving tourist services. These efforts aim to ensure a seamless and enriching experience for visitors.

Economic Impact and Diversification

The anticipated influx of nearly 100 million tourists underscores tourism’s significant economic impact. Beyond revenue generation, tourism creates jobs, stimulates infrastructure development, and boosts related sectors like hospitality and retail. This aligns with Saudi Arabia’s broader diversification goals and socio-economic progress.

Sustainability and Cultural Preservation

As tourism grows, Saudi Arabia emphasizes sustainability and cultural preservation. Initiatives like the Saudi Green Initiative and Middle East Green Initiative demonstrate the Kingdom’s commitment to environmental stewardship. This ensures that tourism development respects natural resources and preserves cultural heritage.

Conclusion

The Minister’s projection of nearly 100 million tourist visits reflects Saudi Arabia’s strides in becoming a global tourism destination. By investing in infrastructure, enacting policy reforms, and promoting sustainable practices, the Kingdom is poised to unlock economic opportunities and showcase its cultural riches. With a commitment to innovation and inclusivity, Saudi Arabia is reshaping the tourism landscape and contributing to global travel industry evolution.

In a groundbreaking move set to revolutionize its entertainment landscape, Saudi Arabia has announced ambitious plans to develop a dedicated gaming and e-sports district within the expansive Qiddiya City project. This strategic initiative underscores the Kingdom’s commitment to embracing the global gaming phenomenon and nurturing a vibrant e-sports culture.

Embracing Gaming’s Ascendancy

As gaming and e-sports continue to ascend in popularity worldwide, Saudi Arabia recognizes the immense opportunities presented by this burgeoning industry. By establishing a specialized hub within Qiddiya City, the Kingdom aims to position itself as a regional powerhouse in gaming innovation, entertainment, and competitive gaming events.

Qiddiya City: A Visionary Destination

Qiddiya City, envisioned as a transformative entertainment and leisure destination, is poised to redefine the concept of urban living. Situated on the outskirts of Riyadh and spanning over 300 square kilometers, this visionary project encompasses a diverse array of attractions, including theme parks, sports venues, cultural centers, and now, a cutting-edge gaming district.

Nurturing Talent and Innovation

The gaming and e-sports district at Qiddiya City will serve as a focal point for talent development, industry collaboration, and technological innovation. By providing world-class facilities, educational programs, and networking opportunities, Saudi Arabia aims to cultivate a new generation of gaming enthusiasts, developers, and competitive gamers.

Economic Stimulus and Industry Growth

The establishment of a dedicated gaming hub presents significant economic prospects for Saudi Arabia. Beyond job creation and investment attraction, the gaming industry has the potential to stimulate growth in ancillary sectors such as technology, hospitality, and retail, thereby contributing to economic diversification and socio-economic advancement.

Fostering Social Engagement and Inclusivity

Gaming and e-sports serve as powerful platforms for social interaction, community engagement, and cultural exchange. By embracing these activities, Saudi Arabia seeks to foster inclusivity, bridge societal divides, and promote dialogue among diverse demographics, thereby enhancing social cohesion and cultural understanding.

Conclusion

Saudi Arabia’s initiative to develop a gaming and e-sports district within Qiddiya City marks a pivotal moment in the Kingdom’s journey towards embracing digital innovation and cultural enrichment. As the gaming landscape continues to evolve, Saudi Arabia is poised to leverage its potential for economic development, social progress, and global engagement. With Qiddiya City poised to emerge as a beacon of entertainment and leisure, the gaming hub stands as a testament to the Kingdom’s commitment to innovation, creativity, and future-forward thinking.

In the dynamic economic realm of Saudi Arabia, where tradition meets modernity in a captivating fusion, employers must maneuver through a maze of labor laws with precision and foresight. Among these regulations, one mandate stands out vividly: the stringent penalties imposed on those found guilty of hiring undocumented foreign workers.

In a recent development, Saudi Arabia has escalated its efforts to combat the employment of unauthorized expatriates by imposing hefty fines and severe legal consequences on violators. The penalty for employing illegal expatriates in the Kingdom now stands at a remarkable $27,000 per worker, coupled with the looming threat of imprisonment for the employer.

This significant reinforcement of penalties underscores the Saudi government’s unwavering commitment to prioritizing the employment of its citizens and legal expatriate residents while tackling the challenges associated with undocumented labor head-on. Let’s delve deeper into the rationale behind these measures and their implications for businesses navigating the Saudi labor landscape.

Upholding Compliance and Fairness

At the heart of Saudi Arabia’s rigorous stance on illegal expatriate employment lies a dedication to upholding compliance with labor laws and fostering a fair and transparent labor market. By discouraging the employment of undocumented workers, the government aims to protect the rights of both local and legal expatriate employees, ensuring fair wages, decent working conditions, and access to essential benefits.

Safeguarding National Interests

Moreover, the crackdown on illegal expatriate employment aligns with Saudi Arabia’s broader strategic objectives, encompassing national security, economic stability, and social cohesion. By reducing reliance on undocumented labor, the government can better manage its workforce, alleviate unemployment among citizens, and strengthen national identity and cultural integration.

Business Implications and Responsibilities

For businesses operating in Saudi Arabia, compliance with labor laws is not just a legal obligation but also a strategic imperative. The consequences of hiring illegal expatriates extend beyond financial penalties and legal liabilities; they can damage a company’s reputation, disrupt operations, and erode stakeholder trust. Therefore, enterprises must implement rigorous due diligence processes, including thorough documentation verification and adherence to immigration regulations, to steer clear of legal pitfalls.

Embracing Ethical Employment Practices

Furthermore, beyond mere compliance, businesses have an opportunity to embrace ethical employment practices that prioritize fairness, inclusivity, and social responsibility. By investing in the recruitment, training, and development of local talent, companies can contribute to the Kingdom’s socioeconomic progress while reaping the benefits of a skilled and committed workforce.

Conclusion

In conclusion, Saudi Arabia’s stringent measures against the hiring of illegal expatriates signify a decisive move towards a more regulated and equitable labor market. While the heightened penalties may seem daunting, they serve as a vital deterrent against exploitation, discrimination, and non-compliance. For businesses, navigating the intricate labyrinth of labor laws demands a commitment to transparency, integrity, and ethical conduct. By aligning with the Kingdom’s vision of sustainable development and inclusive growth, enterprises can not only evade legal entanglements but also emerge as responsible corporate citizens driving positive change in the evolving socioeconomic landscape of Saudi Arabia.

As Saudi Arabia marches forward into the digital age, its workforce is experiencing a significant transformation. With advancements in technology and changing attitudes toward work, the traditional notion of employment is evolving rapidly. One of the key drivers of this change is the adoption of Employer of Record (EOR) services, which are poised to revolutionize the Human Resources (HR) landscape in the Kingdom. In this blog post, we’ll explore how Saudi Arabia can leverage EOR for remote work and flexibility, and what the future holds for HR in the country.

The Rise of Remote Work:

The COVID-19 pandemic has accelerated the global shift towards remote work, and Saudi Arabia is no exception. Companies across the Kingdom have had to adapt quickly to enable their employees to work from home, leading to a newfound appreciation for the benefits of remote work. From increased productivity to improved work-life balance, remote work has proven to be a game-changer for both employers and employees.

However, managing remote teams comes with its own set of challenges, especially when it comes to compliance with local labor laws and regulations. This is where the Employer of Record services comes into play.

Enter Employer of Record (EOR):

Employer of Record (EOR) services provide companies with a compliant and cost-effective solution for hiring and managing remote employees. By partnering with an EOR, companies can streamline their HR processes, ensure compliance with local regulations, and focus on their core business functions. A study by PwC revealed that 78% of businesses leveraging EOR reported improved HR compliance, while 65% noted enhanced workforce flexibility.

In Saudi Arabia, where the regulatory landscape can be complex, EOR services offer a lifeline for companies looking to embrace remote work and flexibility. From handling payroll and taxes to managing employee benefits and contracts, EOR providers take care of all the administrative tasks associated with hiring remote workers, allowing companies to scale quickly and efficiently.

The Benefits of Flexibility:

Flexibility has become a cornerstone of modern workplaces, and for good reason. Employees value the ability to balance their work and personal lives, and companies that offer flexible work arrangements often see higher levels of employee satisfaction and retention.

By leveraging EOR for remote work, companies in Saudi Arabia can tap into a global talent pool and attract top talent from around the world. Whether it’s hiring freelance developers or recruiting marketing experts from overseas, EOR services enable companies to build diverse and dynamic teams without the logistical headaches traditionally associated with hiring international talent.

Looking to the Future:

As we look to the future, it’s clear that the role of HR in Saudi Arabia will continue to evolve. With the adoption of EOR services, companies can unlock new opportunities for growth and innovation, while empowering their employees to work in ways that suit their individual needs and preferences.

By embracing remote work and flexibility, Saudi Arabian companies can position themselves as leaders in the global marketplace, attracting top talent and driving economic growth. The future of HR in Saudi Arabia is bright, and with the right strategies in place, the possibilities are endless. The World Economic Forum predicts that by 2025, 70% of all organizations will have adopted EOR or similar arrangements, underscoring its significance in shaping the future of HR globally.

Conclusion:

The future of HR in Saudi Arabia is intricately intertwined with the adoption of EOR services for remote work and flexibility. Backed by data-driven insights, companies can navigate the evolving employment landscape with confidence, driving growth and competitiveness. As Saudi Arabia charts its course in the digital age, embracing EOR emerges as a pivotal strategy for unlocking the full potential of its workforce and propelling economic prosperity.

Masdar is a pioneering firm specializing in comprehensive Human Resources (HR) and Employer of Record (EOR) services, positioned at the forefront of reshaping employment solutions in Saudi Arabia. With a keen focus on streamlining HR processes and ensuring compliance with local regulations, Masdar empowers companies to navigate the complexities of modern workforce management seamlessly. Leveraging cutting-edge technology and a deep understanding of Saudi Arabia’s regulatory landscape, Masdar enables organizations to unlock new opportunities for growth and innovation while providing a flexible and compliant framework for remote work.

Introduction:

In recent years, Saudi Arabia has seen significant updates and revisions to its labor laws, impacting both local businesses and international companies operating within the kingdom. With stringent regulations in place, compliance is crucial for businesses to avoid penalties and legal issues. In this blog post, we’ll explore how leveraging an Employer of Record (EOR) can streamline compliance efforts and ensure efficiency in navigating Saudi Arabia’s complex labor laws.

Understanding Saudi Arabia Labor Laws:

Saudi Arabia’s labor laws are governed by the Ministry of Human Resources and Social Development (MHRSD), aiming to protect the rights of employees while facilitating a conducive environment for businesses. Key aspects of Saudi labor laws include:

• Employment Contracts:

• • • All employment agreements must be documented in writing, specifying terms and conditions.
    • Contracts should comply with Saudi labor regulations, including provisions for wages, working hours, and benefits.

• Working Hours and Overtime:

• • • The standard working week in Saudi Arabia is 40 hours, typically spread over five days.
    • Overtime work is compensated at a higher rate, often 150% of the regular hourly wage.

• End of Service Benefits (ESB):

• • • Employers are required to provide ESB to employees upon termination of employment, calculated based on the duration of service.

• Saudization:

• • Saudization initiatives aim to increase the employment of Saudi nationals in the private sector.
  • Certain industries have quotas mandating the employment of a minimum percentage of Saudi nationals.

Leveraging EOR for Compliance:

Employers, especially those new to the Saudi market, often face challenges in ensuring compliance with labor laws. Partnering with an EOR offers several advantages:

• Expertise in Local Regulations: EORs possess in-depth knowledge of Saudi labor laws and regulations, ensuring that employment practices align with legal requirements.

• Handling Payroll and Benefits: EORs manage payroll processing, including tax deductions and ESB calculations, relieving businesses of administrative burdens. They also facilitate benefits administration, ensuring compliance with statutory requirements.

• Saudization Compliance: EORs assist businesses in navigating Saudization requirements, helping to recruit, train, and retain Saudi nationals to meet quotas.

• Risk Mitigation: By outsourcing employer responsibilities to an EOR, businesses mitigate the risk of non-compliance and potential legal repercussions.

Efficiency Strategies with EOR:

In addition to ensuring compliance, partnering with an EOR can enhance operational efficiency:

• Focus on Core Activities: With EOR managing HR functions, businesses can focus on core activities and strategic initiatives, driving growth and innovation.
• Scalability and Flexibility: EOR services are scalable, allowing businesses to expand or downsize their workforce rapidly without administrative hurdles.
• Access to Talent: EORs often have extensive networks, providing businesses access to a pool of qualified talent, both locally and internationally.
• Market Entry Support: For companies entering the Saudi market, EORs offer valuable support and guidance, simplifying the process of establishing a presence in the kingdom.

Data-Driven Insights:

According to recent surveys and data analysis:

• 78% of businesses in Saudi Arabia struggle with HR compliance due to complex labor laws.
• Companies leveraging EORs report a 30% reduction in administrative overhead related to HR and payroll management.
• Saudization compliance rates increase by an average of 20% among businesses utilizing EOR services.

Conclusion:

Navigating Saudi Arabia’s labor laws can be challenging for businesses, especially those unfamiliar with local regulations. Partnering with an EOR provides a strategic solution, ensuring compliance with labor laws while enhancing operational efficiency. By leveraging the expertise of an EOR, businesses can mitigate risks, streamline HR processes, and focus on driving growth in the dynamic Saudi market.

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.