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Labor Update – Labor reforms for foreign national private sector workers (2) – Conditions for each of the Initiatives – Property Resource Holdings Group

Labor Update – Labor reforms for foreign national private sector workers (2) – Conditions for each of the Initiatives

On 4 November 2020, the Ministry of Human Resources and Social Development (MHRSD) announced certain labor reforms for foreign national employees working in the private sector that will come into effect on 14 March 2021. Since the initial announcement, the MHRSD (in coordination with the National Transformation Program and National Information Center) announced the conditions in order to benefit from each of the initiatives

On 4 November 2020, the Ministry of Human Resources and Social Development (MHRSD) announced certain labor reforms for foreign national employees working in the private sector that will come into effect on 14 March 2021. Since the initial announcement, the MHRSD (in coordination with the National Transformation Program and National Information Center) announced the conditions in order to benefit from each of the initiatives.

 

Note on Employee Mobility: If the above mentioned conditions to transfer sponsorship without the current employer’s consent are not met, there are other circumstance in which the foreign national employee could transfer his/her employment. These are:

  1. if the employee does not have a documented contract, taking into consideration that the deadline to have a documented contract is three months from the employee’s date of entry into the Kingdom
  2. if the employee has not received a salary for three consecutive months
  3. if the employer is absent due to travel, imprisonment, death, or any other reason
  4. if the employee’s work permit or visa has expired
  5. if the employee reports a violation of the “law against commercial cover-up” by the employer (this law prohibits and penalizes schemes aimed at evading – and covering up violations of – the foreign investment laws), provided the employee is not involved in the “cover-up” activity
  6. if a labor dispute arises between the employee and the employer, and the employer or his representative fails to attend two litigation hearings at any judicial level despite being notified of the hearing dates or not attending two amicable settlement hearings, or
  7. if the current employer approves the employee’s transfer of sponsorship.