New hourly-basis wage work regulation launched for Saudis

May 10, 2020

Saudi Gazette report

The Ministry of Human Resources and Social Development has launched a new labor system titled “Flexible work regulation” based on work for hourly-basis for young Saudi jobseekers.

This initiative, which will further empower young Saudi men and women, will cover all types of jobs in private sector establishments.

The new regulation aims to create job opportunities for Saudi jobseekers as well as to provide jobs for Saudi employees who wish to increase their income. This will be through a flexible contractual regulation under which wage is based on hours of work.

The regulation will protect the rights of both employer and employee through documentation of work contracts electronically through a portal, to be set up by the ministry.

The portal will be launched 90 days after announcing the decision to introduce the new regulation.

The program is keen to support the private sector in meeting its urgent, temporary and seasonal needs for Saudi workers.

The regulation aims to create a new type of job for young Saudis and increase their chances of obtaining a flexible job so as to enable them to engage in the labor market and raise their skills and expertise in preparation for converting them into permanent employees.

It will also be instrumental in reducing the proportion of illegal expatriate workers used by the shadow economy by enhancing the proportion of Saudi participation.

Minister of Human Resources and Social Development Ahmed Al-Rajhi said that this regulation would contribute to support the Kingdom’s economy in terms of establishments and individuals to overcome the current crisis.

It will also be instrumental in achieving the goals of the Saudi Vision 2030 by raising the rates of Saudi participation in the labor market and reducing the unemployment rate.

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