Tough New Rules Designed To Prioritize Saudi Nationals

Co-authored by Zahir Qayum of Al Tamimi & Co.

The Saudi government has introduced a number of measures to favor Saudi nationals over expatriate employees. These so called "Saudisation measures" include the following:

• A new resolution that prohibits the "mass termination" of Saudi nationals for any reason that is attributable to the employer (e.g., redundancy) except in cases of bankruptcy or dissolution (Minister of Labor and Social Development (MLSD) Resolution No. 50945). The resolution applies to employers with 50 or more employees that propose to dismiss 10 or more Saudi nationals within 1 year. Employers failing to comply with the resolution will be subject to penalties that include the withdrawal of the MLSD's services in relation to the issuance and renewal of visas for expatriate employees.