30012011 YOU AND THE LAW (SAUDI ARABIA)

 I have been working for my present company for 17 years. As I understand it, the expiration date of my iqama marks the end of my contract period. If my iqama is due for renewal in January and I plan to leave the company, I should submit my resignation in writing at least 30 days prior to that expiration date.

Should I submit my resignation directly to my employer, or should I submit it through the Labor Office. Is there a special procedure to be followed? I tried to leave the company in 2008 and again in 2009, but the management lured me to stay back with the promise of a salary increase, which I never received. Lastly, my child's exams are in March. Can I ask my employer not to renew my iqama and extend my stay in the country until after my child's exams?

Your knowledge of the law is good. You should focus on negotiating with your employer. After 17 years of work, your employer does not have much justification for preventing you from resigning. If he doesn't give you a raise and you decide to resign, inform your employer in writing at least one month (30 days) prior to the expiration date on your work/residency visa. You should include your request to be allowed to remain until after your child's exams. Considering the long period you have been with the company, your employer doesn't have a legitimate reason not to agree to this request. In case he is adamant and denies your request, file a complaint at the Labor Office in your area.

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?  

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 The Saudi who does this shall be fined and his license withdrawn.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?

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.

~ KSA – Legal Answers given by  Muhammad Jaber Nader