26Sep2005 Algosaibi Highlights The New Labor System

Jeddah, 26 September, 2005

The Minister of Labor, Dr. Ghazi bin Abdulrahman Algosaibi, today said the just-approved new Saudi labor system would cope with new changes and developments at local and international arenas and would satisfy all parties of the labor market.

In remarks to the Saudi Press Agency (SPA) following the weekly Cabinet's session on Monday, in which the new Labor Bill was passed, Algosaibi said the Kingdom had witnessed dramatic economic and social developments since the labor and laborers system was issued in 1968.

The economic activities had doubled, the contribution of the private sector had increased in domestic product and the labor market features had changed, particularly with regard to the growth of local and incoming labor forces, leading to the emergence of new challenges that needed special treatment to conform with these developments, Algosaibi said.

Using the Arab, international and GCC labor agreements and guidelines as guides, and after having consulted with relevant government bodies and the private sector, the Ministry of Labor composed the new labor system and sent it to the Experts Commission of the Cabinet for study, to the Shoura Council for discussion and finally to the Cabinet for endorsement, the Minister of Labor told the SPA.

He said the labor law's basic regulations was inspired by the principles of the Shariah law according to the system's Article 4, the same principles stated by the Statute of Governance.

He said the 245-article system falls in 16 chapters.

Highlighting the major characteristics of the system, Algosaibi said the umbrella of the new law covered, for the first time, some categories which were neglected in the former one.

Housemaids enjoyed a separate regulation, he said, adding that Saudi jobseekers were given special attention in the new system. Laborers at large would receive tough punishments, the Minister said, adding that the disabled would benefit very much according to the new law.

In the new system, the probation period was fixed at 90 renewable days, Algosaibi said, and early retirement, which was not mentioned in the former law, was clearly stated here.

He said the annual vacation entitlement for laborers was increased from 15 to 21 days in the new regulation and could reach 30 days if the worker was employed for the same organisatin for five years or more.

Additional privileges were given to women and to laborers joining educational establishments, he said.

The Minister added that a new definition was given to juveniles, banning recruitment of children under 18.

He said the new system included significant changes on punishments by increasing the ceiling of fines and giving the revenues raised by these fines to the Human Resources Fund, designed to contribute to the expansion in training of Saudi jobseekers.

Another dramatic amendment was the disputes settling system, as a multi-organization labor dispute settlement committee was formed, the Minister said, concluding his statement by hoping that the new law would meet the aspirations of all parties of the labor market and contribute to the enhancement of the Saudi economy in compliance with the new developments locally and internationally.

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