JEDDAH, 23 January 2004 — A new labor law under review by the Shoura Council will allow employers to fire Saudi workers if they prove inefficient, subject to the condition that the dismissal is not arbitrary.
Minister of Labor and Social Affairs Dr. Ali Al-Namlah said this while speaking in Riyadh after a meeting with Saudi businessmen. He said the Shoura is currently studying a new labor and workmen’s law which includes a clause that regulates the relationship between employers and employees.
The move, said the minister, is intended to provide a suitable work atmosphere for Saudi workers employed in the private sector and to encourage this sector to accommodate more national workers. Legal teams will decide whether the dismissal of an employee was arbitrary or not.
Saudis represent a small percentage of overall workers in the private sector; the government remains the major employer. Dr. Al-Namlah asked businessmen to ensure that only Saudis are employed in the job categories specified by the authorities.
The Ministry of Labor and Social Affairs has previously put a stop to recruitment of foreign workers in several sectors covering more than 20 professions. These include corporate administration (administrative managers and their assistants), management training, public relations, clerical, sales management, secretarial, telephone and communications operators, storekeepers, money collection, postal services, information and data processing, car sales, building supervision and tourist guides.
The ministry is also in the process of formulating regulations that could check the outflow of Saudis working with the private sector. A common phenomenon in private business is workers regularly transferring from one employer to another. Workers wishing to join another private establishment would be required to present a clearance certificate from their previous employers.
Businessmen called for a review of the Cabinet resolution setting the Saudization quota that all private businesses must abide by, especially the section requiring that any establishment employing more than 20 workers must increase the rate of Saudization by five per annum. The businessmen argued this may not always be possible given the fact that the supply of Saudi workers is not enough to cover the needs of the private sector. Currently, the required Saudization quota for companies is 30 percent.
On the calls to penalize those companies that do not abide by the quota, the minister said this is a national issue that should not be subject to penalties and that all parties should join hands to make it work.
