Saudi Arabia Update - May 2017

Legal Developments

Potential hourly wage system

The Ministry of Labor and Social Development (MOL) is discussing a potential new employment system for Saudi employees named "Flexible Work" (Flexible Work). Flexible Work will be a system whereby an employee may be paid an hourly wage on a weekly basis in arrears, and various entitlements currently required under the Labor Law for conventional employees would not be required, such as:

1. paid leave periods (e.g., annual leave and public holidays);
2. employer-provided medical insurance; and
3. end-of-service award due upon termination of employment.

Employers, however, will still be required to ensure job security and vocational health for workers employed under the program.