Labor and Employment
This section highlights the efforts carried out by Saudi Arabia’s government sectors and agencies to ensure that job opportunities are made available to both men and women in public and private sectors, while developing human resources and supporting individual businesses leading to the overall productivity of families. Here, you will come to learn about the labor laws and regulations in the Kingdom, employment in public and private sectors, how the Kingdom is supporting the private sector during the COVID-19 pandemic and the method of newly introduced remote working. Additionally, information on self-employment, protecting the rights of workers in the Kingdom, occupational safety and health in the work environment, programs and initiatives for supporting enterprises, training programs, women empowerment, supporting retirees and job seekers and finally the current rates of unemployment, female employees, SME’s contribution to GDP and funding SME’s.
Labor laws and regulations in the Kingdom
"The Kingdom facilitates work fields for everyone capable of working, and legislates regulations that protect the worker and the employer." Article (28) of the Basic Law of Governance
"Work is a citizen's right, and it is not permissible for others to practice it except after fulfilling the conditions specified in the work system. So, Citizens are equal in the right to work without discrimination based on sex, disability, age, or any other form of discrimination, whether during the performance of work, while hiring, or when announcing about it. " Article (3) of the Labor Law
Issued by Royal Decree No. (M/51) dated 23/08/1426 AH - lastly amended by Royal Decree No. (M/5) dated 01/07/1442 AH - and the decision by the Council of Ministers No. 219 dated 22/08/1426 AH, has included regulations related to the following topics: Regulating employment processes, employment of non-Saudis, training and qualifying, labor relations, work requirements and conditions, part-time work, prevention of work risks and prevention of major accidents and work injuries, health and social services, employment of women, employment of minors, maritime work contract, and work in mines quarries, labor inspections, labor dispute settlement bodies, penalties, in addition to concluded regulations.".
According to an integrated methodological scientific basis and a clear vision, the Ministry of Human Resources and Social Development has prepared a "Recruitment Strategy" to be a reference framework for addressing workforce and employment issues in the Kingdom. Achieving the desired goals will be within 25 years distributed in three stages: the short term, the medium term, and the long term. The strategy is based on a vision represented in "providing adequate job opportunities in terms of numbers and wages that lead to full employment of Saudi human resources and creating a competitive advantage for the national economy."
Procedural guide for the prevention of Coronavirus (COVID-19) in the workplace
This guide was issued to ensure workers' and employees' safety in the public and private sectors in the Kingdom. It is to help in limiting the spread of the new Coronavirus (Covid-19). Employers and workers in all sectors must follow the guidelines as well as the instructions of the official authorities to avoid infections.
Employment in the Public Sector
Employment in the government sector (Searching for work in the government sector)
The Kingdom of Saudi Arabia's public sector has enacted several initiatives to support, facilitate, and employ Saudi citizens to help fulfill both job market needs and the strategic goals of the Kingdom's Vision 2030.
The Government Employment System "JADAARA": The Ministry of Human Resource and Social Development launched this system to enable job applicants to register their personal data, list their professional experience and attach the necessary documents to apply for jobs that suit their qualifications.
- Employment in Supportive Government Jobs (SAED): it is a program that is created for citizens who have high school certificates or below to search for jobs by registering their data to be nominated for vacant jobs.
- Employment in the labor sector and social development
- Employment in the health sector
- Employment in the justice sector
- Employment in the education sector
- Employment in the environmental sector
- Employment in other governmental sectors
- Service: Hiring in the Ministry of Islamic Affairs
Employment in the private sector
Employment in the private sector (Searching for work in the private sector)
- Employment of people with disabilities in the private sector (Tawafuq Program): It is a program that is launched to support and empower people with disabilities who could work in private sector institutions.
- The National Labor Gateway (Taqat): An online platform for the labor market in the Kingdom that brings together job seekers with employers. It allows the application, exchange of employment, and training services to be efficient and effective for the workforce's stability.
- The service of: Taqat Registration for Employers.
- The service of: Taqat Registration for Jobseekers
- The service of: Registration Job Seekers at HADAF
- Employment Support Initiative: An initiative that is launched to subsidize the wages of Saudi men and women in the private sector by 30% and up to 50% or a maximum of 3000 riyals.
- Temporary work - direct contracting: a program that facilitates access to the workforce by enabling individuals wishing to work for establishments to register on the site of AJEER Program. It publishes the CVs of labor in the market for direct contracting. At the same time, establishments can benefit from job seekers by contracting based on specific requirements and submitting offers.
- The service of direct contracting to provide employment services.
- MARIN: it is a program that enables the Saudi job seeker and the employer to contract flexibly, and the wage for it is on an hourly basis (the lowest wage unit), without committing to any other benefits, such as paid vacations, end-of-service bonuses, and no trial period is required.
- On-the-job training: it is a program for Saudi graduates from local and foreign universities to train them in government institutions and distinguished companies in the private sector.
- Parallel Saudization: It helps establishments urgently improve Saudization rates until the facility finds the necessary Saudi workers.
- QIWA Platform: it is a platform that is launched by the Ministry of Human Resources and Social Development for sustaining the empowerment and Saudization of business.
- NITAQAT: it is one of the Ministry of Human Resources and Social Development initiatives to raise the rate of Saudization in the private sector. It classifies the private sector according to activities and the percentage rate of Saudization in each classification.
The Kingdom's Support for the Private Sector During the Corona Pandemic
“2020 was an extraordinary year for the Kingdom of Saudi Arabia by all standards. Despite the great challenges associated with the COVID-19 pandemic, the Kingdom managed to become a leading country in various sectors according to several international reports. For instance, the Kingdom of Saudi Arabia made an astounding progress for the second consecutive year in the Women, Business, and the Law 2021 report. Further, it was the only country in the MENA region to advance in the World Competitiveness Yearbook, to be ranked 8th among the G20 countries. These accomplishments come as a result of NTP initiatives to improve the business environment which has led to more than 555 reforms in the commerce regulations. Consequently, the time required to start a business was reduced from 15 days to only 30minutes and the number of Small and Medium-sized Enterprises (SMEs) has increased to more than 626,000. Moving forward, the kingdom intends to continue developing the regulations related to the economy and development affairs, as well as achieving the objectives of Vision 2030. ”
HE Minister of CommerceMajid bin Abdulla Al-Kassabi
The Kingdom has taken several measures and initiatives designed during the Corona pandemic to contain the private sector's financial and economic repercussions. Various sectors have taken the initiative in response to these efforts. The Kingdom has allocated 17.3 billion riyals to support private sector enterprises and enable them to grow during the post-pandemic period. The Ministry of Human Resources and Social Development has undertaken many initiatives to mitigate the impacts through preventive measures to preserve the rights of workers and employers, including:
- Requiring the private sector to apply sick leave, exceptional leave, and home quarantine.
- Issuing the decision of regulating the contractual relationship between employees and employers.
- Temporarily suspending the procedures of domestic workers.
- Restricting the practice of passenger transport activity service to Saudis.
- Exempting small enterprises from paying the fees.
- Launching an initiative to enable expatriates to return to their countries and allow the cancellation and refund of fees for workers' work visas.
- Disabling the wage protection suspension during that period.
- Disabling the temporary suspension of private sector establishments to correct the activity and disabling the suspension due to non-payment of the fines collected
- Calculating Saudi employment in NITAQAT immediately for all establishments.
- Stopping fines for the importing of labor and continuing the service for Al-Safwa customers around the clock.
- Enabling of employee exchange through AJEER Program
- Exempting of financial fines for expatriates whose residency is expired until June 30, 2020.
- Extending or refunding exit and re-entry visas that were not used during the entry and exit ban period for 3 months.
- Retroactive hiring support since the beginning of July 1, 2019 and new hires.
- Adding Article (41) to the executive regulations of the work system.
- Encouraging business owners to expedite identifying locations and details of labor housing belonging to their establishments through a rental network.
- The Kingdom increased the numbe of SMEs in 2020 to more than 626,000.
Remote Working in the Kingdom
The digital transformation and the presence of a robust and advanced technical infrastructure in the Kingdom contributed to the appearance of remote working. The governmental and private sectors' success in implementing mechanisms and programs for remote work to face the obstacles that may stand in front of employees, such as the geographical dimension, mobility operations, and pandemics like Coronavirus (Covid-19).
Remote Working Program
It is an initiative that is launched by the Ministry of Human Resources and Social Development. It aims to bridge the gap between employers and job seekers, who are prevented by several obstacles from obtaining the appropriate job opportunity. The program supports all members of society: (males - females - people with disabilities).
- Telework Program Guide (Corporate and Business Owners Edition)
- E-commerce System and its Execution Regulations
Self-employment in the Kingdom
In fulfillment of the Kingdom's 2030 vision, the Ministry of Human Resources and Social Development launched the Self-Employment Program; To empower national energies and support those looking for additional income opportunities and be self-employed. The program provides a document approved by the Ministry for specialists in several activities, and it enables them to find opportunities to work in their field of specialization independently. It gives them several advantages upon their issuance of the self-employment document.
To register on the freelance platform, click here.
Protecting the Rights of Workers in the Kingdom
Service Period Rights:
- Working hours and rest periods
- Medical care
- Leave work without notice
It is one of the Ministry of Human Resources and Social Development initiatives. It aims to monitor wage payments for all workers in private sector establishments (Saudis and Expatriates). Subsequently, It is easier to determine the level of establishments' commitment to pay wages on time on the agreed value.
- More about protecting the rights of workers in the Kingdom.
- Details of the Human Rights Commission Guide to Rights and Duties of Workers in the Kingdom.
Occupational Safety and Health in the Work Environment
To achieve an environment that is attractive, professional, safe, and risk-free health. It is imperative to provide the necessary measures to achieve the safety of the environment and its workers and follow the Occupational Safety and Health Administration regulations proposed by the Ministry of Human Resources and Social Development. And the employer must adhere to:
- Prohibiting working in the sun during the noon hours
- Controlling to protect against behavioral infringements in the work environment
- Preventing work and accident risks
- Enduring work injuries
- Providing health and social services to the worker
- Continuous development of the work environment
To view the guidance material, you can visit the Occupational Safety and Health page.
Initiatives and Programs for Supporting Enterprises
Supporting Small to Medium Enterprises and Accelerators
- MONSHA'AT: It focuses on supporting, developing, and caring for small to medium enterprises in the privet sector. According to with international best practices, it implements and supports the programs and projects of theses enterprices. It is to spread the culture and ideology of entrepreneurship, initiative, innovation, and diversification of enterprises' financial support sourcess.
- Business Incubators and Accelerators Company: It establishes, operates, maintains, and manages business incubators and accelerators to provide entrepreneurship support, platforms, and project management services. Also, it is specialized in consulting and training services.
- BADIR Incubator: It is one of the King Abdulaziz City for Science and Technology programs. It was launched to support technology-based ventures and develop technology entrepreneurship.
Nine-Tenths 9/10: It is a program that contributes to advance business growth by supporting small to medium enterprises through several platforms. It is for the general benefit of the entrepreneurs, owners of small to medium enterprises, independents, and productive families, such as:
- FORSA Platform: It enables small enterprises to view and submit electronic quotations on government sector purchases.
- BAHAR Platform: It gathers all freelancers with the most important projects.
- Made in Saudi Arabia Platform: It is an e-commerce platform that enables craftsmen to open their stores to sell their locally made products.
- ZAD Platform: It enables small business owners and entrepreneurs to develop their businesses and improve their decision-making process by employing interactive reports.
Training and Qualifying Programs
The competent authorities in the Kingdom provide vocational training and employment-related training programs for enterprises and individuals to increase the specialized national workforce through training and qualitative qualification for work.
SAIFI: It is a program for students over the age of 17 to provide them with essential skills that are eligible for the labor market. It enables them to invest their spare time during the vacation in a beneficial way.
DUROUB Platform: It is a national e-training platform that contains many free training programs, and it is available for a variety of topics that meet job requirements. It can be accessed at any time and from everywhere. Also, it provides online certificates directly after completing 70% of the training program.
- Career Education and Guidance Platform (SUBOL): It is a platform that enables Saudi energies to make better education and career options through an integrated system of educational services for students, job seekers, and employees
Professional Certificates Support Program: The initiative was launched to motivate the national workforce and support job seekers to obtain professional certificates aligned with the current market needs.
Women and The Kingdom's Economy
Today, women play a developmental role in supporting the national economy. Women are part of the comprehensive development plans that achieve social and economic gains, which prompted the Ministry of Human Resources and Social Development to place women on its list of targets to empower them, train them, and enhance their leadership participation in society. The indicators also revealed that the share of women in the labor market for the first quarter of 2020 AD increased by more than the desired goal, to be 27.5% instead of 24%, which reflects the successes achieved and the high level of awareness of the importance of women's participation and the role it plays in economic indicators.
Women in The Private Sector
The Kingdom, represented by the Ministry of Labor, was keen to open several areas for women's work, emphasizing employers to provide a safe and stable work environment by requiring them to apply several regulations to ensure the comfort, stability, and safety of working women.
- Handbook of Women's Employment in the Private Sector.
- Unified Organization of the Working Environment for Women
Programs to Support and Empower Women
The Ministry of Human Resources and Social Development has launched several specific initiatives to empower women in the labor market, thus achieving the Kingdom's vision 2030 in supporting and empowering women in the labor market and leadership and administrative positions.
Gender equality and combating discrimination in work and wages
There is complete equality between men and women in the majority of areas related to human rights such as the right to work, education, health, economic rights and others. There is also an equality when it comes to the ability to file a complaint or report on human rights issues. Click here for more.
To stop discrimination in the framework of work, the labor law has established a number of rights and duties on an equal footing between men and women, such as equal pay in the event of equal value and quality of work, and full equality in the search for work aid, and in training programs to obtain work. You can read more about Chapter Nine of the Labor Law, which provides articles for the employment of women under the labor law.
Ma3an Rasd a service that gives the ability to report any violation or corruption in the services of the Ministry of Human Resources and Social Development which may affect others and the ministry itself.
- More about: Equality between men and women and combating discrimination in work and wages
- Female localization.
- Raising awareness of the importance of women's participation in the labor market.
- Combating discrimination in the labor market.
- Supporting programs of transportation for working women (WUSOOL Program).
- Supporting programs of daycare centers for the children of working women (QURRAH Program).
- Empowering women in the civil service and strengthening their leadership role.
- Women Leaders Program 2030.
Controls for Behavioral Abuse Protection in the Work Environment
It is a set of procedures and requirements that the facility must abide by to preserve the privacy, dignity, and personal freedom of the individual.
Behavioral infringement (or abuse) means all abusive practices by one party to another, including all forms of exploitation, threats, harassment, blackmail, temptation, quarrels, insults, humiliation, insinuation, or intentional solitude with the opposite sex, or any other forms of discrimination, whether physical, verbal, or otherwise, whether on the basis of sex, gender or otherwise, that aims, leads, or is likely to result in physical, psychological, sexual or economic harm to the other party.
These controls aim to promote the creation of a safe work environment in private sector establishments characterized by respect for all, and the preservation of the individual's privacy, dignity and personal freedom guaranteed by the provisions of Islamic Sharia and regulations.
for more details, click here.
Support for Retirees
Through the Public Pension Agency, it provides distinguished services to retirees and its participants to improve pension systems and enhance the concept of governance. The Foundation also works to provide many programs aimed at improving the services provided, such as:
Support for Job Seekers
The "HAFIZ" program provides financial support to job seekers during their job-search journey, provides them with the skills and resources needed to join the labor market, and enables them to search for work by linking their files registered in the system to employment centers and presenting the opportunities available to them.
- Service: Registration in the incentive program to search for work
- Service: Registration in the HAFIZ Program, the difficulty of finding a job
- Service: Registration of job seekers in the seriousness of work reward program
- Service: Verification of Subscriber's Eligibility for Unemployment Benefits (SANED)
- Service: Payment of unemployment benefits
Indicators and Numbers
|Indicator||Current||Target in 2030|
|Saudis Unemployment Rate||9% 2nd quarter of 2020||7%|
|Percentage of Female Workforce||31.4% 31.4% 2nd quarter of 2020||30%|
|Percentage of SMEs' contribution to GDP||28.75% In 2019||35%|
|Percentage of Funding SMEs||52% 3rd quarter of 2020||20%|
|Number of Freelancers||2,100,000 independent worker (1st week of 2020)|
- Services for employers and the private sector
- Service Reporting Violations of Labor Regulations (Ma3an Rasd)
- Human resource budget
- Labor laws and regulations
- Open Data - Human Resources
- Common questions about work
- Statistics of human resources services
- Subscribe to HR alerts and updates
- Subscribe to alerts and updates in the Human Resources Fund
- Labor Force Survey
- Saudi Portal for Human Resources
- Ministry of Human Resources and Social Development
- Human Resources Development Fund (Hadaf)
- The General Authority for Small and Medium Enterprises "Monshaat"
- Public Pension Agency
- The Public Institution for Social Security
Last Modified Date: 24/11/2021 - 11:31 AM Saudi Arabia Time