Sunday, December 7, 2014

Court decided in favor of labor in Saudi Arabia

It is correctly said that it’s the employees who run the company not the employer; the employer is only the team leader. Laborers are one of the most aggressive types of human species. If under any circumstances their rights are thwarted they can become caged animals and destroy the company from within. Labor union problems are the common nightmares of all the conglomerate giants all over the world. Once the laborers of any company unite against the employer, unless that company is bankrupt they will not rest easy. Similar situation occurred in Jeddah, where the employee of a telecommunication company has filed a complaint with the Ministry of labor Committee for failing to pay his three days income.

According to the employer, the employee took five days of unauthorized leave that’s why they have cut his salary. In the defense of his case, the employee has presented the owner with documented evidence of his presence; however, the company completely ignored his evidence and decided to go ahead with the deduction. The company owes 950 Saudi Riyal. The Ministry of Labor Committee gave the order to reimburse the employee after hearing the case but the company did not do so. As a result the committee took the case to the court where a judge has given a five day deadline to the owner of the company. Should he fail to reimburse the employee, he will face several penalties which will include travel ban and suspension of major services from all government departments. Furthermore, a fine of ten thousand per day will be applied on the company past the deadline if he fails to pay back the employee. Saudi law states that in such cases if the employer remains stubborn and persistent against the employee then he may face a punishment of seven years in jail.

I think it is total insanity which is forcing the owner to not to pay the employee his money. Saudi law always favors the laborers, however mostly they do not know their rights. We have explained in this link the "Rights of Expatriates in Saudi Arabia". These types of cases are common with expatriates living in Saudi. One more common occurrence is that the owner keeps the passport of the expat, though, if we consult the labor law it is against that act. We have explained it in this link “Legality of Holding Passport by Employer”. 

The passport is the property of that person and he should not surrender it to anybody. Similarly, the labor class who usually are expats, are supposed to work long hours when under law they are only allowed to work forty eight hours a week, if they are working more than that, then they are to be paid 1.5 percent of their daily wage. We have explained it in this link “Working Hours and Overtime as per Saudi Labor Law”. If the following rules are not followed then the employee can bring the owner of the company to court, if they do, they will find the courts very fair. Although, most expatriates avoid going to the court because, they fear that the employer might never return their passport or might cancel their Iqama (residential Permit).
Source: Saudi Gazette

Labor Disputes
  1. Register a Case against Kafeel in Ministry of Labor
  2. Procedure for Expatriates with Huroob (Absconder) Status to Avoid Jail and Go Home
  3. Check Huroob Status of Employee
  4. Removing Huroob from Iqama
  5. Penalties of Not Reporting Huroob on Kafeel
  6. Making Payment for the Removal of Huroob
  7. Why I support operations against Illegals?


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