BASIC LEGAL INFORMATION FOR INDIAN WORKERS IN THE KINGDOM OF SAUDI ARABIA  (COMPILED BY CONSULATE / EMBASSY)

Q : What are the salient features of Saudi Workmen Contract ?

A : The following are the salient features of Saudi Workmen Contract :

          a. Employee’s position

          b. Duration of Contract

          c. Probationary period

          d. Basic Monthly salary

          e. Normal Working hours, Weekly Rest  & Rates for

             overtime work

          f. Vacation- Leave period, Leave pay & Cost of air fare

              for vacation

          g. Accommodation

          h. Transportation - accommodation to job site and back

          i. Food allowance

          j. Sickness and Medical expenses

          k. Cost of Iqama and Work permits, Passports, etc.

          l.  Personal & Accidental Insurance and damages incurred

         m. Termination- (I) within probation period by either parties

                                  (II) termination of contract by employer

                                  (III) termination of contract by employee

          n. Service benefits

          o. Clauses covering facilities for dependent family members

          p. Validation of employment contract

          q. Renewal of validity of contracts period

          r. Addition/ alteration of any clause of contract

          s. Legal jurisdiction over disputes.

GENERAL CONDITIONS  OF EMPLOYMENT CONTRACTS

Q1. Can unsigned agreements be accepted ?

A:  No. Unsigned agreements have no validity and only contracts signed by the employer are accepted. Contracts signed by others including Recruiting Agent, have no legal validity in Saudi Courts.

Q2. How can the genuineness of agreements be verified ?

A. Contracts attested by the Indian Missions and concerned local authorities like Chamber of Commerce and Foreign Ministry are of genuine nature.

Q3. How to get a copy of contract before arrival ?

A : According to Govt. of India’s instructions, recruitment agents are supposed to provide copies of employment agreement to each worker before his departure. Also to safe guard his own interest,  individual worker has to demand from the recruitment agent for  copies of employement contracts before commencement of journey. Complaints may be lodged against the defaulting agent with the nearest Protector of Emigrant.

Q4. Are contracts without Arabic version acceptable ?

A : No. Only Arabic version of contracts are accepted by Saudi authorities. Even in Bilingual contracts (Arabic & English), Arabic version will be considered as authentic by the local authorities.

Q5. If any clause of signed contract contradicts local law, which one has legal value ?

A : If any clause of contract contradicts local Workmen Law, then the Law takes precedence over the employment contract.

Q6. Is there any category not covered under Saudi Workmen Law ?

A : Yes. Many categories like domestic workers both male & female, agricultural labourers, fishermen and ship crew are not covered under Saudi Workmen Law. As such, these categories and their disputes do not fall under the jurisdiction of Saudi Labour Offices.

Q7 . Which authority is to be contacted for the exempted categories in case of dispute with sponsor ?

A :   In case of dispute, these categories have to contact the Committee of Governorate for domestic workers in respective areas. Earlier these Committees were having officials from local Governorates and are now manned by the officials from (Jawazath) Saudi Passport Department.

Q8 . What about the persons holding visit visa taking up employment  ?

A : Persons who enter Saudi Arabia under Visit /Transit /Umrah/ Haj visa are not allowed to take up employment. They will be treated as illegal workers even if a duly signed contract between both parties exists.   

Q9.  What about FREE WORK VISAS ?

A :  There is nothing called a “free work visa” according to law. Hence the arrangement of allowing the worker to work freely with any other sponsor is illegal. The worker in this category, if caught working with a person other than his sponsor, is repatriated back to his country.

Q10. Can the worker have the right to ask for a release from his sponsor ?

A :  No. Release of sponsorship is not a legal right of a worker and the employer reserves the right to give or withhold release to the worker. It is a special right given to employers to safeguard their business interest.

DESIGNATION

Q 1. Can the designation of worker in contract be changed ?

A : Yes, Designation of the worker can be changed after tedious formalities with the concerned local authorities after taking up employment.

Q2. Is there any problem if the designation remained unchanged ?

A : In many cases, highly qualified professionals who came to Saudi Arabia with the designation of unskilled/ semi-skilled category faced many problems in securing driving licences, resident visas for dependent family members, transit visas for travel to neighbouring GCC countries due to incorrect designations.

Q3 : How one can check the designation before arrival ?

A : Visa documents issued by Saudi Ministry of Foreign Affairs indicates designation of all categories covered by that particular visa. Visa copies are available with Recruiting Agents. Employment visa endorsement in passports also indicate the designation of the worker.

DURATION OF CONTRACT

Q1. : What is the normal period of an employment contract ?

A :  Normally contract period is one year in case of professionals and 2 years for unskilled /semi-skilled workers.

Q2. : When does the contract come into force ?

A : Contract comes into effect from the date of arrival in Saudi Arabia.

Q3. What about the place of employment and relevant rules ?

A : Saudi employers have the right to deploy the worker under his sponsorship in any of his office / premises anywhere in the Kingdom of Saudi Arabia.

PROBATIONARY PERIOD

Q1 : What is the normal probationary period ?

A : Normally probationary period is 3 months and in some cases 6 months. Six months probation period has to be mentioned specifically in agreement and the worker has to be intimated before arrival.

Q2 : What will happen if any worker is found unfit on arrival by the employer for the job for which he was recruited ?

A : The employer has the right to repatriate the worker. However, in many instances, the employers try to reduce the salary of the concerned worker so that the worker can be accommodated in some other capacity.

WORKING HOURS/ WEEKLY REST/ OVERTIME PAY

Q1 : What are the normal working hours / weekly holiday ?

A : Normal working time is 8 hours daily and 48 hours per week and Friday is observed as weekly rest day.  Depending upon the nature of job, 8 hours work can be split up. Friday rest can be interchanged by offering compensatory off-day or by paying extra amount as over time allowance.

Q2 : What is the rate of overtime allowance ?

A :   Overtime allowance is to be calculated and paid on hourly basis. Rate applicable is  150 % of the rate of normal working hour.

VACATION

Q1: What is the admissible duration of vacation ?

A :  Vacation period is according to the clause mentioned in the contract. Normal practice prevailing in Saudi Arabia is 30 days leave with full pay  per year for professionals/ office staff and 15 days per year with full pay for unskilled / semi-skilled workers.

Q2 : What is the effective date of vacation ?

A :  It is normally after the completion of one year/ two years contract period. But it can be deferred for few months by the employer / employee depending upon the necessity of work.

Q3 : Can vacation pay be encashed, if not availed ?

A :  It can be encashed depending upon mutual consent of employer and employee.

Q4.  Who has to bear the cost of air fare during vacation ?

A :  The employer has to bear the cost of air fare for vacation, unless otherwise mentioned in the contract specifically.

Q5. Who has to be approached if leave/ air fare was denied ?

 A :  Labour Courts of Saudi Arabia are the competent authorities to settle the issue.

ACCOMMODATION

Q1 :  Who is responsible for residential accommodation ?

A : It is the responsiblity of the employer.  Whenever the employer fails to provide suitable accommodation, House Rent allowance has to be paid to the employee on monthly/ quarterly/ annual basis. Normal rate is 25 % pay, depending on mutual agreement.

Q2. : What about the daily transportation to and from job site ?

A : It is the responsibility of the employer. Whenever the employer fails to provide transportation from accommodation to job site daily, transport allowance has to be paid monthly. Rates have to be agreed mutually.

FOOD ALLOWANCE :

Q1 : Who is responsible for food expenses of worker ?

A : Unless specified otherwise in the contract, it is the responsibility of the worker concerned.

SICKNESS :

Q1 : What about sickness of worker ?

A :  It is the full responsibility of the employer. He has to make arrangements to provide medical care to workers. Otherwise, the expenses incurred by the worker have to be reimbursed.

Q2 : Is there any exemption in medical treatment cover to workers ?

A :  Treatment of dental ailments and treatment due to prolonged illness not arising out of job conditions are exempted from reimbursement. Cost of spectacles, contact lens are to be borne by the employee.

COST OF IQAMAS, ETC

Q1 :  What about cost of Iqama, work permit, etc of worker ?

A : It is the full responsibility of the employer. But the renewal of passport is the responsibility of the worker.

PERSONAL & ACCIDENTAL INSURANCE

Q1:  Are all the workers insured in Saudi Arabia ?

A : No. All the workers are not insured in Saudi Arabia.

Q2 : What about GOSI insurance system ?

A : The compulsory system of all workers being covered under GOSI against work related accident, has been changed to voluntary by the Saudi Govt a few years ago. However, most of the workers in industrial sector are still insured with GOSI for work related accidents.

Q3 : Is there any life insurance scheme for natural deaths ?

A : No scheme exists for life insurance by employers. If any one opts for insurance, it is the responsibility of the individual concerned.

Q4 : Are there any personal Indian insurance companies ?

A : LIC / New India Assurance are the prominent Indian companies. They have personal life insurance and disability compensation policies.

Q5 : Is the payment of premium the responsibility of employer ?

A: All employers in private sector are supposed to insure their employees against work related accidents. However, it is found that most of the employees are not insured.

Q6 : What about accident policy applicable for drivers ?

A : Third party insurance is not compulsory in the Kingdom of Saudi Arabia, though the premium is quite reasonable. In case of accident due to the fault of the driver, he is held responsible and has to pay for the compensation. It is, therefore, advisable for Indian workers to take third party insurance themselves in case their sponsors do not have third party insurance.

Q7 : Are there any other insurance schemes for information ?

A : (i). Pravasi Suraksha Policy & Family Insurance policy of New India Assurance Co. operate in cooperation with Govt. of Kerala.

      (ii). Ruksa Policy of NCCI, Saudi Arabia against road accidents.

TERMINATION WITHIN PROBATIONARY PERIOD

Q1 : Who can  terminate the agreement within the probationary period ?

A : Both employer and employee can terminate the agreement.

Q2: If agreement is terminated during probation by employer, what benefits will the employee get ?

  A : The employee will get salary for the period of his service and airticket to his place of hiring.

Q3: Can the employee terminate the agreement ? What benefits will the employee get ?

A : Yes, if the employee terminates the agreement within the probation period, he has to pay the cost of airfare for his return trip and the cost of recruitment to the employer.

TERMINATION IN FIRST AGREEMENT PERIOD (Specified period)

Q1: What is meant by specified period of contract ?

A :  Normally contract period is for 1 or 2 years. This contract in which period is mentioned specifically is called specified period of contract.

Q2: Can anyone terminate the agreement within specific contract period ?

A : Both employer and employee can terminate the agreement by giving one month’s notice.

Q3: If agreement is terminated during specific contract period by employer, what benefits does the employee get ?

A : The employee gets salary & severance for the period of his service and airticket upto the point mentioned in the agreement.

Q4: What if the employee terminates the agreement ?

A : If the employee terminates the agreement within the specific period of a contract, he will get salary till the period he works but the employee has to pay the cost of airfare for his return trip.

TERMINATION IN SUBSEQUENT CONTRACT (Unspecified period)

Q1 : What is meant by unspecified period of contract ?

A : If a work contract for specified period is completed and both the employer and employee  continue to enforce it or fail to renew it, then the contract shall be considered as renewed for unspecified period with the same conditions of previous contract.

Q1: Can anyone terminate the agreement within unspecific period ?

A : Both employer and employee can terminate the agreement by giving one month notice.

Q2: If agreement was terminated during specific period by employer, what benefits will the employee get ?

A : The employee will get salary & severance for the period of his service, i.e. @ 15 days pay per year for first 5 years and 30 days from sixth year and airticket to the point mentioned in the agreement.

Q3: What if the employee terminates the agreement ?

A : If the employee terminates the agreement within unspecific period, he will get salary till the period he works and 1/3 of serverence for 5 years service, 2/3 of serverence upto 10 years and full severence after 10 years as mentioned in the rates mentioned above and airfare for his final trip.

ALTERATION/ ADDITION OF NEW CLAUSES IN CONTRACT

Q1 : How to add / alter any clause of contract ?

A : During the period of stay of employee in Saudi Arabia, any alteration/ addition of clauses in contract can be made at any time by signing additional or new contract by both employers/ employees.

RENEWAL OF CONTRACT :

Q1 : How is the validity of contract to be renewed ?

A : The validity of contract contract can be renewed by signing a new one at the end of the old one.

Q2 : The Contract period is completed, but no new contract is signed. Then what is the legal status of worker ?

A : If the initial validity of old contract lapses and no new contract is signed, then the old contract will get renewed automatically for the same period with the same conditions. So it is better for the employees to get their contracts signed afresh to ensure their safety.   

LEGAL JURISDICTION

Q1 : Which authorities are to be contacted in case of dispute ?

A :  Labour offices established by the Saudi Government in various parts of Saudi Arabia are the competent authorities to settle all disputes relating to foreign employees.

Q2 : Name the location of  Labour Offices in areas under the jurisdiction of CGI, Jeddah.

A :  Labour offices are situated almost in all big cities like Jeddah, Makkah, Taif, Madinah, Yanbu, Rabigh, Qunfudah,  Abha, Al-Baha, Bishah, Najran, Gizan and Tabuk.

Q3 : What language is to be used in Labour Offices ?

A :   Arabic is to be used for all transactions.

Q4 : Can the dispute be argued by the petitioner or by attorney ?

A :  Dispute can be argued by the petitioner himself or any authorised Saudi attorney. However, the officials allow the friends/ relatives of the petitioner also for translation purposes.

Q5 : What is the role of officials from Indian Embassy/Consulate General in Labour Offices ?

A  : Officials from Indian Embassy/ Consulate General are allowed to work only as Interpretors in Labour Offices and they are not allowed to work as attornies for petitioners.

Q6 : Is the decision of the Labour office final ?

A :  No, The decisions of Labour offices situated in various cities of Saudi Arabia are not final and their decision can be appealed within 15-30 days with Lajna ( Higher Committee of Labour Ministry) at Riyadh whose decision is final.

Q7 : Which authority has to be contacted for the implemention of decision of Labour Offices ?

A : Whenever the decisions of Labour Offices are not implemented by the other party, Huququl Madani (Civil Rights Department) of Police Department has to be approached.

Q8 : Are there any books available about labour laws ?

A : Yes, Saudi Workmen Law (bilingual- Arabic & English) is freely available in book form in almost all book shops. The cost of the booklet is SR.14/- nowadays.

GENERAL INFORMATION

Q1 :  What are the main classifications of death by Saudi authorities ?

A   :  Deaths are classified due to functional purpose, as (I) natural death and (ii) unnatural death.

Q2 :  What is meant by natural death ?

A :     Natural death means death of person due to reasons like old age, sickness, heart attack, etc.

Q3 : What is meant by unnautral death ?

A :   Unnatural death means death due to murder, suicide, traffic accident, industrial accident, drowning, electic shock, falling from a work site, etc.

Q4 : What is first thing to be done in case of death of an Indian national ?

A : The death of an Indian national is to be intimated with his sponsor, Police, nearest Indian Mission and the next of kin of the deceased in India.

Q5 : What are the modes of disposal of dead bodies ?

A   :  Dead bodies can be buried inside Saudi Arabia or can be transported to India.

Q6:  Can all dead bodies be transported to India ?

A :  Yes, Dead bodies of all Indian nationals irrespective of religion, region, caste, creed, can be transported to India.

Q7: Can all dead bodies be buried locally in Saudi Arabia ?

A  : No, Dead bodies of Muslims can be buried locally all over Saudi Arabia and in the case of non-Muslims, the dead bodies are invariably transported to India due to non-existance of burial facilities in Saudi Arabia except non-Muslim cemetries at Jeddah, Dammam and Najran.

Q8 : Is cremation allowed in non-Muslim cemetries ?

A :   No, Dead bodies are permitted only to be buried and not to be cremated in non-Muslim cemetries.

Q9 : Who is responsible for the cost of burial or transportation ?

A  :  The Saudi sponsor of the deceased is legally bound to bear the cost of burial or transportation of deceased person.

Q10: Who has to decide over the disposal of dead body ?

A :  According to the laws of India and Saudi Arabia, the legal heirs of the deceased have the final say over disposal of dead body either by burial or transportation to India.

Q11 : How long can the dead bodies be kept in mortuary ?

A    : Normally, dead bodies involving unnatural deaths are kept in mortuary till the completion of investigation by local authorities. Whereas there are many instances the dead bodies of normal natural death are being buried after two months, after obtaining permission from local Governorate, even if no intimation is received from the relatives of deceased. This is to ensure  space in mortuaries is available.

Q12 : Is there any charge to be paid to mortuary authorities ?

A     : As a respect towards dead bodies, the local authorities do not charge any fees for keeping the dead body in morturaries in Govt. hospitals through out Saudi Arabia. However, the private hospitals charge a huge sum which differs from place to place.

Q13 : What are the documents required for transporting dead bodies ?

A : The documents mentioned below are required for transportation of dead bodies to India: -

1. Medical Report from the hospital authorities

2. Death Certificate from Civil Affairs Deptt

3. No Objection Certificate from Indian Mission

4. Police Report from Police authorities

5. Permission from local Governorate

6. Embalming Certificate from mortuary authorites

7. Tasrih al Dafan (burial/transportation permission from Police)

8. Passport of the deceased with exit stamp after cancelling Iqama

Q14 : What are charges for embalming a dead body ?

A :   SR.2094 is the