Internal Work Regulations

Internal work regulations are among the most important factors in the success of companies and establishments of every size and type of activity, because they set out the relationships between the company and its employees, helping it to develop and expand its business.

As the owner of an establishment, you therefore need to have your establishment's work regulations approved and to keep them up to date with changes in the labor market. If you would like to know every detail about how to obtain this service, read on.

What Does Approval of Work Regulations Mean?

Employees in any company must work in accordance with a number of terms and conditions set by the employer, which are essentially in line with the labor law in force in the country. The relationship between the employer and their employees therefore rests on three sources: the Labor Law, the contract between them, and the internal work regulations.

Work regulations are the set of rules and policies relating to the performance of work that companies or establishments prepare and then submit to the Ministry of Labor for approval, once it has confirmed that they do not conflict with the Saudi Labor Law. The company or establishment must then display the regulations in a place clearly visible to all employees.

Types of Work Regulations for Companies

As the owner of a company or establishment, you can choose between two types of work regulations:

• The model work regulations prepared by the Saudi Ministry of Labor, which you can adopt and issue immediately, with the option of making limited amendments.
• Customized work regulations, for which you engage a law firm to draft and review them before they are approved by the Ministry.

Which of the two is preferable depends on the nature and size of the company's business. Customized work regulations are, however, more effective, because they are designed to suit the company and achieve its goals.

Key Features of Companies' Internal Work Regulations

The key features of companies' internal work regulations include:

• They are drafted by the employer in collaboration with an expert lawyer in this field, and the employer has the right to prepare regulations that balance their interests with those of their employees.
• They set out the rules and policies governing the affairs of the establishment's employees and their relationships with one another and with officers, managers and employers.
• The employer has the right to amend the regulations to keep pace with market developments, provided they do not conflict with the Saudi Labor Law, and must display them prominently in the establishment so that all employees are aware of them.
• The employer can impose penalties on those who commit violations in the establishment in accordance with the regulations, protecting the business from laxity, lack of seriousness and anything that harms the establishment's reputation.
• Companies' work regulations serve as standing orders that apply to all employees in the establishment, whatever their position.

Saudi Work Regulations

To make things easier for company and establishment owners, the Saudi Ministry of Labor has prepared model work regulations covering:

• General provisions.
• Appointment and promotion.
• Wages, raises and incentives.
• Allowances, financial and in-kind benefits, and compensation.
• Incentives, healthcare and social services.
• Working hours, rest periods and overtime rules.
• Leave.
• Provisions on violations and disciplinary penalties.
• Health and safety rules in the company.
• How employees may use the company's facilities and equipment.

Companies and establishments may adopt these regulations as they are, or amend and add to them. They may also prepare their own regulations, provided they comply with the provisions of the Saudi Labor Law. The rationale for allowing companies to prepare their own regulations is to create a competitive environment between companies in terms of the benefits they offer their employees.

To have your establishment's work regulations approved, you need to contact a law firm accredited by the Ministry of Labor, which will review them, confirm that they comply with the Saudi Labor Law and then have them approved.

At Sahal Law Firm, our team of lawyers and legal advisors drafts internal work regulations for companies and establishments in the best possible way, in line with the labor law of the Kingdom of Saudi Arabia, and has them approved by the competent authorities. We fully understand how important approved work regulations are for Saudi companies, and that they are an essential ingredient in the success of a business that has clear rules and policies for all its employees.

Why Approved Work Regulations Matter for Companies and Establishments

Approved work regulations matter for companies and establishments because they:

• Define how the company operates.
• Clarify the relationships between the company's owners and its employees.
• Clarify the rights and obligations of both the employer and the employees.
• Support high-quality output and help manage staff by organizing the work.
• Prevent disputes that may arise between employees and the company's owner.
• Protect the company's good reputation.

Your company's success depends on everyone connected with it complying with the legislation and laws that govern it. To ensure this compliance, you need an expert lawyer to draft your work regulations in line with Saudi labor rules and have them approved by the relevant authorities in the Kingdom.

Are Work Regulations Mandatory for Companies?

The Saudi Ministry of Labor requires all companies and establishments, whatever their number of employees, to adopt their own work regulations, and the Minister may exempt certain cases from this requirement.

Consequences of Not Having Approved Internal Work Regulations

Some people may not attach much importance to obtaining approved work regulations for their company, but in fact this exposes them to many risks, the most important of which include:

• Paying the fine set by the Ministry of Human Resources, amounting to SAR 10,000.
• Exposing the company to significant losses because of the difficulty of proving discipline and compliance on the part of employees, and the difficulty of resorting to litigation.
• Exposure to various commercial risks.

Procedures for Approving Work Regulations in Saudi Arabia

The main steps in obtaining approved work regulations in Saudi Arabia are:

• Drafting your company's internal work regulations. You can engage a lawyer specializing in this field to provide professional, appropriate drafting free of legal errors.
• The regulations must be drafted in Arabic; you can have them translated later if some of the company's employees need this.
• The lawyer then submits the draft to the competent committees to review it and confirm its legality.
• Once the regulations have been approved and the date for applying their provisions has been set, they must be displayed in a place clearly visible to all of the company's employees.
• It is essential to update the internal work regulations in line with changes in the market.

Contact a Law Firm for Work Regulations Services

If you have a company or establishment and want its internal work regulations approved by an accredited law firm, please contact Sahal Law Firm. A team of specialists and experts in this field will work with you to deliver the service in the best possible way and achieve its core purpose: making your company successful and preserving its good reputation with your clients. Don't hesitate to contact us for the following services:

• Legal advice on preparing the draft work regulations.
• Preparing and drafting the regulations professionally, in line with the Saudi Labor Law.
• Having the work regulations approved by the relevant authorities in the Kingdom of Saudi Arabia.
• Updating work regulations in line with market changes.
• Approval of work regulations for establishments of every type of activity — commercial, educational, healthcare, construction, finance or technology — with regulations that contain all of the establishment's rules and provisions.

Because work regulations are a reliable source recognized by official bodies in the Kingdom, you can obtain court judgments in your favor on the basis of their provisions.

If you want your work regulations approved, you need to find a lawyer who specializes in this type of legal service and knows all its details. At Sahal Law Firm, we save you the trouble of searching: our legal team brings a high degree of experience, professionalism and competence in every law and provision relating to work regulations for Saudi companies.