I have been working in a company since Jan. 26, 1999. Now I am looking to resign with one month’s prior notice. My company is saying that I will get one third of my salary for each of the first years of my service, and two thirds of it after my service exceeds five years. Is this correct?
Yes, that is correct. You seem to be working on an unspecified (open-ended) contract. Your monthly salary is your basic wage. Your actual wage is your monthly salary plus all other allowances, such as housing, transportation, monthly average, etc. Your End-of-Service benefit (ESB) is calculated on the basis of your so-called Last Monthly Actual Wage, or LMAW. Your ESB is calculated on the basis of your LMAW. If you work for less than two years you get no ESB. Beyond that, for each of the first five years of service you get one third of your LMAW. For each of the next five years of service you get two thirds of your LMAW. If you work beyond that, your ESB becomes is a full LMAW for each subsequent year. You also get ESB for any portion of an incomplete year. For your car the usage is shared: you should get SR500 a month for that.
Sunday, May 20, 2007
Authorized translation
Why do authorities insist on translations by “authorized translators”? We all know that many freelancers can translate better than many of the licensed translators. This only increases the expense on people needing to submit Arabic translations to the authorities.
The reason is that an authorized translator must have an official license for his profession. This is done after he enters and passes an exam at the Ministry of Commerce. A freelance translator may be a good translator, but having not undergone the examination the authorities cannot be sure of the accuracy of his work. Another reason is that a licensed translator carries the responsibility for his work and liability for his mistakes. If a licensed translator commits a mistake in his translation that causes damage to anyone he is liable for the damages. This is in contrast to an ordinary translator, who may not be held liable for his translation faults.
The reason is that an authorized translator must have an official license for his profession. This is done after he enters and passes an exam at the Ministry of Commerce. A freelance translator may be a good translator, but having not undergone the examination the authorities cannot be sure of the accuracy of his work. Another reason is that a licensed translator carries the responsibility for his work and liability for his mistakes. If a licensed translator commits a mistake in his translation that causes damage to anyone he is liable for the damages. This is in contrast to an ordinary translator, who may not be held liable for his translation faults.
Another question on NOC.
We are grateful to the minister of Labor for ordering strict penalty against employers who delay salaries of their employees. This gives the employee the chance to change work permits to another employer without the consent of the defaulting employer while reserving his full rights for his previous job. I was hoping the same would happen to the condition of the No Objection Certificate (NOC) imposed on the foreign employee after the termination of his contract, which is unlawful according to the New Labor Law, Shariah and human rights. I am wondering why the ministry hasn’t order the relief of this unfair NOC condition imposed on foreign workers, while this may be more important than the delay of payment of a salary.
The reason is that the NOC issue involves other authorities. Probably the Ministry of Labor could not act unilaterally on this issue. By contrast, foreign missions exerted considerable pressure on the authorities to resolve the issue of unscrupulous employers not paying or delaying the salaries of their workers. The ministry understood and complied with the various requests to mend this situation and it ordered the new regulation in this concern. If the foreign missions exerted similar pressure on this issue perhaps there would be momentum in this regard. Urge your people to do that. Until then employees should strive to put in their contracts before signing them that the employer will provide a NOC upon satisfactory completion of their contractual obligations. That would be lawful and legal. What isn’t lawful or legal at this time is compelling employers to provide NOCs against their will.
The reason is that the NOC issue involves other authorities. Probably the Ministry of Labor could not act unilaterally on this issue. By contrast, foreign missions exerted considerable pressure on the authorities to resolve the issue of unscrupulous employers not paying or delaying the salaries of their workers. The ministry understood and complied with the various requests to mend this situation and it ordered the new regulation in this concern. If the foreign missions exerted similar pressure on this issue perhaps there would be momentum in this regard. Urge your people to do that. Until then employees should strive to put in their contracts before signing them that the employer will provide a NOC upon satisfactory completion of their contractual obligations. That would be lawful and legal. What isn’t lawful or legal at this time is compelling employers to provide NOCs against their will.
Marriage of non-muslims
I am a non-Muslim. I met a woman who is also non-Muslim. We want to get married here. Can we do that? If the answer is yes, what are the legal proceedings required to accomplish this?
Congratulations! The answer is yes; you can marry in any city in Saudi Arabia. The required legal proceedings are to apply to the Shariah court providing your nationality and religion. The court will set a date to draw up and finalize the marriage contract. The court must establish that the bride is an unmarried adult with permission from her male guardian to marry you. A dowry agreement must be established. (The dowry is part of the requirements, but is at the discretion of the couple and can be viewed as a simple formality if you and your fiancée so desire. For example, the bride can agree to a one-riyal dowry or a gift-in-kind.)
Two witnesses must also attend the contract meeting. The contract will be concluded and signed by the groom, bride, bride’s guardian (or by whomever the guardian has assigned power of attorney) and the two witnesses. A document of such marriage will be issued, signed and stamped by the Shariah court.
Congratulations! The answer is yes; you can marry in any city in Saudi Arabia. The required legal proceedings are to apply to the Shariah court providing your nationality and religion. The court will set a date to draw up and finalize the marriage contract. The court must establish that the bride is an unmarried adult with permission from her male guardian to marry you. A dowry agreement must be established. (The dowry is part of the requirements, but is at the discretion of the couple and can be viewed as a simple formality if you and your fiancée so desire. For example, the bride can agree to a one-riyal dowry or a gift-in-kind.)
Two witnesses must also attend the contract meeting. The contract will be concluded and signed by the groom, bride, bride’s guardian (or by whomever the guardian has assigned power of attorney) and the two witnesses. A document of such marriage will be issued, signed and stamped by the Shariah court.
ESB calculation
I have completed a three-year contract plus a one-year extension. I was given 30 days’ notice, which ended on Jan. 20, 2007. Then I was asked to continue working on a monthly basis with no contract, which I did. Now, I wish to leave but my company says I must give them 30 days’ notice, there will be no ESB (end of service benefits) for the period since Jan. 20, and I have to pay own fare. They also state that because they provide transport and accommodation in kind, such benefits do not form part of my ESB for the four years I worked under contract.
You must give your company 30 days’ notice before quitting work. But, you will be entitled to ESB for your four years of service and your travel expenses to your home country. Your transportation and accommodation should be included in the ESB calculation. If they refuse, then you may complain at the Labor Court.
You must give your company 30 days’ notice before quitting work. But, you will be entitled to ESB for your four years of service and your travel expenses to your home country. Your transportation and accommodation should be included in the ESB calculation. If they refuse, then you may complain at the Labor Court.
Air Ticket cost payment
I have completed three years with my current company. My contract has now been extended for only two months. However, the company has agreed to release me to work for another employer with an Iqama transfer. During my last contract year, I could not avail of my annual leave and air tickets due to work and project requirements. As per my contract, I am entitled to round trip airfare for my family and myself for the completed contract year. I do understand that I am not entitled for my exit ticket as my Iqama will be transferred to another company, but I am positive that I am still entitled to my annual vacation tickets. However, my company has refused to give me these tickets and their stand is based on the company policy, which states that an employee is only provided a round trip ticket when his contract is extended for another full year. According to my understanding, my contract should take precedence over the company policy.
Your company may have the right to refuse to give you the annual round-trip tickets since you did not use your annual leave. This is because your contract states that the company will provide you and your eligible dependents with round-trip air tickets from London to Karachi at the time of granting you your annual vacation. Since your contract does not state that you are entitled to air tickets even when you do not use your vacation, the company’s policy will prevail.
Your company may have the right to refuse to give you the annual round-trip tickets since you did not use your annual leave. This is because your contract states that the company will provide you and your eligible dependents with round-trip air tickets from London to Karachi at the time of granting you your annual vacation. Since your contract does not state that you are entitled to air tickets even when you do not use your vacation, the company’s policy will prevail.
Air Ticket
I have been working for a company for more than five years. I did not sign any contract with them. I worked for them in the first year without being under their sponsorship. Now I am planning to resign. They told me my first year would not be counted for my end-of-service benefits (ESB). They are also telling me that I will have to pay for my return ticket. Please advise!
You are entitled to the ESB from the first day of your work irrespective of the sponsorship transfer. As to the payment of the air ticket, if you are resigning according to the provisions of the contract then it is the responsibility of the company to repatriate you to your home country.
If your resignation is in breach of the provisions of your contract, then the company has the right to ask for compensation and in that course it may ask you to pay for your ticket home.
You are entitled to the ESB from the first day of your work irrespective of the sponsorship transfer. As to the payment of the air ticket, if you are resigning according to the provisions of the contract then it is the responsibility of the company to repatriate you to your home country.
If your resignation is in breach of the provisions of your contract, then the company has the right to ask for compensation and in that course it may ask you to pay for your ticket home.
Fees for Iqama renewal
I have been working for a company for five years. During this period the company renewed my iqama (work/residency visa) twice and paid its charges. Now, they are informing me that they are going to deduct the cost of the iqama renewals from my salary. Is it fair? There is nothing mentioned about iqama renewal in my contract. Who should pay this fee?
Legally iqama fees are on the employer unless stipulated otherwise in the contract to which you have agreed. It is not mentioned in your contract that you would pay or share in your iqama fees. Moreover, your company already paid for them in the past, so they have no legal right to ask you to pay them now or in the future. You would be within your legal right to refuse to pay. If your company insists, you may complain to the Labor Office.
Nevertheless if you find it in your own interest for whatever reason, and by your own free will agree to pay all or part of your iqama fees, you may do that. This would be treated as a new agreement between you and your company. If you decide to do that, it would be very difficult for you in the future to say you had to agree to that under duress.
Legally iqama fees are on the employer unless stipulated otherwise in the contract to which you have agreed. It is not mentioned in your contract that you would pay or share in your iqama fees. Moreover, your company already paid for them in the past, so they have no legal right to ask you to pay them now or in the future. You would be within your legal right to refuse to pay. If your company insists, you may complain to the Labor Office.
Nevertheless if you find it in your own interest for whatever reason, and by your own free will agree to pay all or part of your iqama fees, you may do that. This would be treated as a new agreement between you and your company. If you decide to do that, it would be very difficult for you in the future to say you had to agree to that under duress.
Tuesday, January 2, 2007
NOC related
Q. I would like to know whether the company has any right to force a resigning or end-of-contract employee to sign a contract agreeing not to return to Saudi Arabia for a specific period of time. What options do employees have if they encounter such a situation?
Ans. An employer has no right to force an agreement contrary to the will of an employee. Unless an employee had undertaken any action in writing, he has the right to refuse the imposition of any new conditions. After an agreement is concluded, neither side has the right to add anything to the agreement unless the other party agrees to it.
As for course of action: the employee may complain to the Labor Office. In extreme circumstances he may stop work and the contract may be considered cancelled by the employer, with full rights and benefits. On the other hand it will be difficult to avoid compliance if the employee signs an agreement like the one to which you are referring.
Ans. An employer has no right to force an agreement contrary to the will of an employee. Unless an employee had undertaken any action in writing, he has the right to refuse the imposition of any new conditions. After an agreement is concluded, neither side has the right to add anything to the agreement unless the other party agrees to it.
As for course of action: the employee may complain to the Labor Office. In extreme circumstances he may stop work and the contract may be considered cancelled by the employer, with full rights and benefits. On the other hand it will be difficult to avoid compliance if the employee signs an agreement like the one to which you are referring.
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