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Post # 1
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Join Date: 16 Oct 2010
Location:  Saudi ArabiaPosts: 3 |
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Saudi LAW - Q & A |
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I would like to ask you about the system for workers who work in a company without sponsorship. I heard there is punishment announced by the Ministry of Interior for the company which hires such people and the workers who work without sponsorship. If that is the case, to whom can we complain for what happened to us as expatriate workers, against those who sponsored us illegally? — AMSH
This is trafficking of manpower and is tackled by the Saudi authorities and governments worldwide. Both sponsor and expatriate worker are considered to have violated the law and are subject to penalty. Both parties (employer and employee) are partners in crime. The Saudi who does this shall be fined and his license withdrawn. As for the expatriate worker, he will have to spend time in prison and then be deported to his country with no chance of returning to Saudi Arabia or any of the GCC countries. A way out for the expatriate before this happens is to immediately have the Saudi sponsor transfer his work permit to another legitimate sponsor if he has already spent two years in the country. If he has been here for less than two years, he will not be able to take advantage of this solution. He must find a new employer and have his present sponsor make immediate arrangements to have his work permit transferred as soon as the period of two years pass. I am a medium-category employee and have been working for a large company for the last 12 years. I want you to tell me if it is correct that the end of service benefit (ESB) is given in the final year of service and is based on the last monthly wage (LMW), after adding all the allowances to the monthly salary. Payment of ESB would be half LMW for each of the first five years, and full LMW for each of the remaining years. Any part of the year would be paid proportionately. I hope this is correct. But this is only part of my question. During my employment, I had been given a flat for me and my family, a car for my private use and three meals a day at the company restaurant. My question is how much should be added to my monthly salary to form my LMW for the purpose of my ESB when the time comes for my departure. Some say one-fourth and some say one-third. What is the legal truth? — Anmaz Your understanding of the formation of ESB and its calculations is correct. As for your question of how much must be added to the monthly salary to form LMW, it is stipulated in the last paragraph of Article Two of the Labor Law, which says: "5- what the employer commits himself to provide to the worker for his work by stating it in the work contract or the work organization regulations, is estimated at a maximum of two months’ basic wage per annum, unless otherwise determined to exceed that in the work contract or work organization regulations." So, unless it has been agreed to be more between the two parties in their contract, or in the bylaw of the company, which is considered part and parcel of the labor contract, then the legal answer to your question, as the law says, is actually one-sixth for each of the three items you mentioned. Thus in your case, two-thirds of your monthly salary must be added to form your LMW in your ESB calculation. |
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