Saudi Arabia

Ministry of Human Resources and Social Development guidance on how to deal with unvaccinated employees, following the implementation of mandatory vaccination requirements to attend the workplace.

The Ministry of Interior issued a statement stating that effective 1 August 2021, individuals will only be permitted entry into the workplace (government, private, and not for profit), public and private establishments, if they have received one of the KSA authorities approved COVID-19 vaccination. The Ministry of Human Resources and Social Development issued a guidance to employers on how to deal with unvaccinated employees. The guidance provides that employees who remain unvaccinated as of 9 August 2021 who cannot work remotely will be required to exhaust their annual leave and go on unpaid leave and thereafter their employment will be suspended pursuant to the provisions of the Labour Law.

Key Action Points for Human Resources and In-house Counsel 

Employers will need to devise a plan on how to manage sufficient staffing levels to ensure business continuity.

For more information on these articles or any other issues involving labour and employment matters in Saudi Arabia, please contact Sara Khoja (Partner) of Clyde & Co at sara.Khoja@clydeco.ae or visit www.clydeco.com.

For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.

In the past month, there have been several labour and employment law developments, chief among them: i) new COVID-19 workplace vaccination requirements will enter into force on 1 August 2021; and ii) the government has launched its revised Saudisation manual (Nitaqat).

COVID-19 Workplace Vaccination Requirements

The Saudi Press Agency has reported that effective 1 August 2021, individuals will only be permitted entry into public and private establishments if they have received one of the government-approved COVID-19 vaccinations.

Ministerial Decision No. 182495 dated 11/10/1442 AH concerning the Developed Nitaqat Programme

The Saudi Ministry of Human Resources and Social Development (MHRSD) has launched its revised Saudisation manual (Nitaqat) via Ministerial Decision No. 182495 dated 11/10/1442 AH concerning the Developed Nitaqat Programme. The latest version contains three new features: the first being a localisation plan to increase organisational stability; the second containing a new Saudisation formula directly associated with the number of employees at an organisation (rather than using classifications); and the third simplifying the programme’s characteristics. 

Key Action Points for Human Resources and In-house Counsel 

Employers will need to understand the new method of calculating their Nitiqat rating to ensure compliance with the new programme.

In the past month, there have been several labour and employment law developments, chief among them: i) adding a new clause to the Labour Law; and ii) various measures have been put in place in order to tackle the impact resulting from COVID-19.

I. Ministerial Resolution 13//1441 Amending the KSA Implementing Regulations to the Labour Law

Ministerial Resolution 13//1441, equivalent to 6 April 2020, was issued on 6 April amending the implementing resolution to the Labour Law (issued in January 2019) by adding a new clause – 41 – which provides the following:

• In the event the Kingdom adopts measures as recommended by an international organisation to provide for adjusted working hours or to avoid a situation falling under Article 74 (5) of the Labour Law, which provides for termination of employment by reason of force majeure, an employer will be able to agree any of the following measures with an employee for a six month period following the introduction of such measures:
• Reducing the employee’s salary in correspondence with a reduction in the employee’s working hours;
• Putting the employee on annual leave as part of his annual leave entitlement;
• Putting the employee on exceptional leave in accordance with Article 116 (unpaid leave) of the Labour Law
• Termination of employment following the implementation of such measures will not be justified if the employer received assistance from any government programs during this period;
• Nothing in this resolution prevents or inhibits the employee’s right to terminate his employment contract.

II. COVID-19 Measures

Various measures have been put in place in order to tackle the impact resulting from COVID-19.

MHRSD Mandates

The Ministry of Human Resources and Social Development (MHRSD) has mandated the following:

• 14 days’ paid leave (additional to all usual leave entitlements under the labour law) must be granted to employees in categories which are identified as high risk with regard to COVID-19. These include those with autoimmune disease, cancer, respiratory illness, chronic illnesses and pregnant women or breastfeeding women as well as employees aged 55 years and above. Such employees are not required to work from home during this 14 day period;
• Employees outside of the Kingdom due to the suspension of commercial flights are regarded as being on official leave over and above the minimum under the Labour Law (the Ministry has not stated whether this should be paid or not but merely that its status is that it is authorised leave); and
• Employees ordered to quarantine (even if self-imposed) for 14 days are on official leave over and above that under the law (the Ministry has not stated whether this should be paid or not but merely that its status is that it is authorised leave).

Work from Home

The MHRSD instructed private sector establishments on 18 March 2020 to suspend work at their main office / headquarters and instead activate work from home (WFH) procedures. Companies are also required to reduce the number of employees working in their branches, offices and other facilities to a maximum of 40% of the headquarters (HQ) workforce. The WFH initiative was initially for 15 days, but is now understood to be until Ministry of Interior and MHRSD advise otherwise. Certain sectors are exempt from the above requirements. MHRSD will issue the exemption on application.

Sectors still operating workplaces are required to adhere to the following:

• Maximum of 40% of the workers should attend the premises;
• Employers with a workforce of more than 50 employees must introduce mandatory temperature checks;
• Ensure that sufficient space is available between workers in the workplace and in their accommodation;
• Close all health clubs and nurseries located at the company’s HQ; and
• Require all employees to disclose if they exhibit symptoms of high temperature, coughing or shortness of breath, or have mixed with an infected or suspected case of COVID-19.

Furlough Programme for KSA Nationals

On 3 April, KSA announced a furlough programme for the private sector, the current details of which are:

• The employer may apply to the General Organisation for Social Insurance (GOSI) to cover 60% of its KSA national employees’ salaries up to a maximum of SAR 9,000 per employee through the SANAD programme (unemployment benefit programme). If the employer has 5 employees or less, then all of them will be covered, otherwise up to 70% of the employer’s KSA national workforce may be covered through this initiative.
• The payments will be made for three months: May, June and July 2020. The employer does not have to top up the employees’ salaries during this period to 100% of what they would normally be. The employee does not have to work during this period when the employee is receiving funds directly from the SANAD programme through GOSI.
• The KSA employee must have been registered with GOSI prior to 1 January 2020.
• The employer must be able to demonstrate that it is in a sector badly impacted by COVID-19. The following sectors are exempt from this programme: financial services (including banks, insurance companies, exchanges), communications, food retail outlets and food companies.
• The employer must pay wages to all other employees, both KSA nationals and foreign nationals during this period.
• The employer must have paid its employees their complete and accurate salaries during the first quarter of 2020.
• The employer must undertake that once the three month period is over (end of July), the employer will resume paying such employees their salaries in full.

For more information on these articles or any other issues involving labour and employment matters in Saudi Arabia, please contact Sara Khoja (Partner) of Clyde & Co at sara.Khoja@clydeco.ae or visit www.clydeco.com.