Saudi Arabia has a clear labor law administered by the Ministry of Human Resources and Social Development (MHRSD). Any HR company outsourcing its services must ensure that the outsourcing service provider complies with local laws, such as employment contracts, wages, working hours, and employee rights. The outsourcing company should also function within the Saudi Labor Law's legal framework to prevent punishment.
- Saudization (Nitaqat program) requirements
One of the most significant legal aspects is Saudization or the Nitaqat Program. If you pick Saudi HR Outsource, your provider will need to comply with such quotas and report accordingly. Defaulting on Saudization may lead to penalties or limitations on business practices.
- General Organization for Social Insurance (GOSI) compliance
All Saudi Arabian employees need to be registered with GOSI, which is responsible for social insurance contributions. In outsourcing with HR Outsource Riyadh, companies need to guarantee that the HR provider will register employees properly and make contributions.
- Workforce protection & wage protection system (WPS)
Saudi Arabia has the Wage Protection System (WPS) in place to guarantee timely payment of employees' wages. Providers of HR outsourcing services like eHR are required to adhere to this system by making accurate payroll and forwarding salary payments via approved banks.
Employee contracts & end-of-service benefits
HR outsourcing companies should guarantee that employment agreements adhere to Saudi labor standards, including key provisions such as wages, benefits, and termination conditions. Furthermore, end-of-service benefits (ESB) should be accurately computed and paid out to employees according to labor regulations. Mismanagement of ESB may result in complaints and litigation.
For more information, you can visit our website https://www.ehr.sa/or call us at 0966-559748933
