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Aligning with Change: How Align Manpower Ensures Compliance in Saudi Arabias Shifting Labor Scene

Saudi Arabia has made significant changes in labor laws and regulations to promote investment, equality, and diversity in the workplace. The Kingdom has streamlined employment practices, promoted compliance with labor regulations, and safeguarded the rights of both employers and employees. 

The Qiwa platform has evolved into a centralized hub for managing employment-related processes, from contract documentation and payroll management to Saudization compliance. The Ministry of Human Resources and Social Development (MHRSD) has actively been working on updating the KSA Labor Law, and formal updates are expected in 2024. 

The MHRSD has implemented various policies and legislative changes to support the country's ambitious goals and objectives. The Kingdom has introduced an amended series of fines and increased protections for Saudi workers. Employers are required to maintain a clean and hygienic worksite, provide adequate lighting, and ensure the safety of employees. 

QIWA Platform

Established by the Saudi Arabian Ministry of Human Resources and Social Development, Qiwa is an online platform designed to simplify and streamline the process of founding and operating businesses in the Kingdom. 

This integrated platform provides a multitude of services and tools for businesses, including company creation, issuance of commercial permits, access to financial institutions, and access to training and development programs. 

Qiwa's primary objectives include fostering entrepreneurship, attracting external investments, and creating employment opportunities for Saudi citizens, all of which contribute to improving the business environment in the Kingdom. By offering a seamless and efficient business ecosystem, Qiwa in Saudi Arabia aims to enhance the competitiveness of local companies and support the nation's economic growth.

The QIWA platform enables work permit issuance, employee contract registration, and other HR functions while ensuring compliance with Saudi Arabia's labor and payroll regulations. Employers are advised to review existing policies, revise employee contracts, and keep apprised of global developments and changes to migrant worker protections and treatment.

Labor Law Updates

The latest labor law updates in Saudi Arabia have introduced several key changes to promote investment, equality, and diversity in the workplace. Some of the most significant updates include:

Amendments to the KSA Labor Law: Anticipated changes to the KSA Labor Law are expected in 2024, following the 2021 consultation. These changes are likely to affect recruitment, employment of KSA nationals, contracts of employment, working hours, statutory rights, and end-of-service gratuity.

Labor Reform Initiative (LRI): Launched by the Ministry of Human Resources and Social Development (MHRSD), the LRI aims to improve mobility for foreign workers and create a more robust labor market. The LRI was due to come into effect on 14 March 2021.

Increased Protections for Saudi Workers: The Kingdom of Saudi Arabia announced plans to introduce an amended series of fines and increased protections for Saudi workers. Fines for labor violations will be assessed based on the size of the company.

Salary Delays: The platform has reduced the period for employers to justify salary delays to 10 days and mandated that employers who delay salaries for three consecutive months face a halt to all recruitment activities. Employees impacted by such delays can transfer to another employer without needing consent from the original employer.

Localization of Insurance Sales Jobs: Saudi Arabia has mandated the localization of all insurance sales jobs, effective from April 15, 2024.

Contract Documentation: The MHRSD has outlined a staggered approach for the documentation of contracts throughout 2023, with 20% required in Q1, 50% in Q2, and 80% by Q3. This contract documentation service aims to safeguard the rights of all involved parties and foster a healthy working environment conducive to employee retention.

These updates demonstrate the Kingdom's commitment to reforming labor laws and creating a more diverse, inclusive, and favorable work environment, in line with the Vision 2030.

Resources

Employers in Saudi Arabia can access various resources to help them comply with labor laws, including:

Ministry of Human Resources and Social Development (MHRSD): The MHRSD is a key regulatory body overseeing labor laws and regulations in Saudi Arabia. Employers can refer to the MHRSD's official website for comprehensive information, guidelines, and updates on labor laws and compliance requirements.

Labor Law Guide: The MHRSD provides a detailed guide to help employers understand the conditions and procedures for compliance with the Labor Law and its Implementing Regulations. This guide clarifies the requirements and obligations for employers, making it a valuable resource for ensuring compliance.

Labor and Workmen Law: The official website of the Saudi Embassy provides access to the Labor and Workmen Law, which outlines the general provisions, labor contracts, working hours, employment of juveniles and women, penalties, and other relevant aspects. Employers can refer to this law for in-depth insights into their obligations and the rights of employees.

Legal Firms and Consultancies: Employers can also seek guidance from legal firms and consultancies with expertise in Saudi labor laws. These firms often publish insights, articles, and updates on labor law changes, providing valuable interpretations and practical implications for employers.

By utilizing these resources, employers can stay informed, understand their obligations, and ensure compliance with the latest labor laws in Saudi Arabia.

Align Manpower Forays into Saudi Arabia's Labor Landscape with Compliance and Innovation

n the evolving landscape of Saudi Arabia's labor laws and regulations, Align Manpower with a strong foothold in Dubai and recently foraying into the Kingdom of Saudi Arabia, has positioned itself as a reliable partner for both employers and employees. 

Qiwa Platform: A Centralized Hub for Compliance

Align Manpower recognizes the pivotal role of the Qiwa platform, established by the Saudi Arabian Ministry of Human Resources and Social Development, in facilitating business operations within the Kingdom. Align Manpower leverages Qiwa to ensure compliance with labor and payroll regulations, streamlining work permit issuance, employee contract registration, and other HR functions.

Labor Law Updates: Adapting to Change

Saudi Arabia's commitment to reforming labor laws is evident through recent updates aimed at promoting investment, equality, and diversity in the workplace. Align Manpower stays ahead of the curve by closely monitoring and adapting to key changes introduced through the Labor Reform Initiative (LRI) and other legislative amendments. These changes include increased protections for Saudi workers, localization mandates, and adjustments to salary delay justifications.

Compliance Measures for Employers

In the face of evolving labor regulations, Align Manpower provides a roadmap for employers to ensure compliance:

Policy Revision: Align Manpower advises employers to update company policies in alignment with the latest labor law updates, covering areas such as recruitment, employment of KSA nationals, contracts of employment, working hours, statutory rights, and end-of-service gratuity.

Training Programs: The company encourages employers to offer training to senior leadership and managers on applicable anti-discrimination, equal opportunity, and other laws. This ensures a workforce educated on compliance with local regulations.

Contract Review and Update: Align Manpower stresses the importance of revising migrant worker contracts to align with legal updates introduced through Vision 2030, reflecting the commitment to diversity and inclusivity.

Documentation Best Practices: Employers are urged to maintain proper documentation of communication with employees on various topics, ensuring transparency and adherence to labor regulations.

Qiwa Platform Utilization: Align Manpower highlights the central role of the Qiwa platform in managing employment-related processes. Employers can utilize the platform for seamless contract documentation, payroll management, and Saudization compliance.

As Saudi Arabia progresses towards its Vision 2030 goals, Align Manpower stands as a partner committed to aligning with and adhering to the evolving labor regulations. The company's integration of the Qiwa platform and proactive compliance measures ensures that employers navigate the changing landscape with ease, contributing to the creation of a diverse, inclusive, and favorable work environment in line with the Kingdom's aspirations. Employers can leverage Align Manpower's expertise and resources, along with the support of regulatory bodies, to stay informed and ensure ongoing compliance with Saudi Arabia's labor laws.