2.25.2011

Saudi Labour Law - Work Contract

I have been working with my current employer for the last two years, but did not enter in to a work contract. Is it necessary? What will be the legal consequences of this mistake? Please comment.

Ignorantia juris non excusat or Ignorantia legis neminem excusat these are the Latin maxims and the meanings are "ignorance of the law does not excuse" or "ignorance of the law excuses no one". This is a common legal principle holding that a person who is unaware of a law may not escape liability for violating that law merely because he or she was unaware of its content. Fortunately you can escape from this menace through a legal loop-hole mentioned below.

Sometimes some ignorant employers / employees reluctant or do not give much importance for a written work contract. This will lead to complications in regard to the rights and benefits of the employee apart from legal benefits assured by Saudi Labour law. But as per Article 51 of Saudi Labour Law, even if it is not written, a contract shall be deemed to exist. In this case the burden of proof to establish his entitlements on the shoulders of employee alone.

In kingdom of Saudi Arabia, a work contract is an important document for every expatriate. In the case of employees of the government and public corporations, the appointment decision or order issued by the competent authority shall serve as the contract.

Article 50 of the Saudi Labour law gives definition of work contract. A work contract is a contract concluded between an employer and an employee whereby the employee undertakes to work under the management or supervision of the employer for a wage. Article 51 says that, the work contract shall be in duplicates, one copy to be retained by employer as well as employee.

Both parties can at any time demand that the contract be in writing.