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New regs for freelance and other “flexible” work: The Human Resources and Social Development Ministry has issued new regulations (pdf) to create a legal framework for the freelance and other “flexible” work systems. The new regulations went into effect on Sunday, 19 May; only Saudi nationals can legally engage in freelance work.
In context: This is the latest move in the government’s push to open up to regional and international corporates, while accommodating and streamlining the different contracting systems that are currently gaining traction in the job market. There are currently 35k workers on the system, according to the ministry’s website.
Contracts must be registered on the government’s Marn platform. The regulations also require that contracts mention a specific contracting duration and for employees to be paid an hourly rate. The contracting parties can agree to mention specific working hours in the contract.
Contract duration: The maximum duration of a contract is 12 months — consecutive or not — and if the contracting parties wish to continue working together beyond that duration they have to sign a new contract that expires after 12 months of work.
Working hours + compensation: Workers are allowed to clock in a maximum of 95 hours per month with one employer — half the number of working hours required by the private sector for employees on standard contracts. Workers on the flexible work system can put in a maximum of 160 hours per month with one employer, but will have to be paid for overtime. Overtime payment can be in the same hourly amount mentioned in the initial contract. Workers have the freedom to accept or decline to work during hours that are different from the ones specified in the contract.
This counts towards the company Nitaqat points: Companies with a minimum of 160 hours of work registered by any number of employees under this system will be able to receive Nitaqat points. However, a maximum of 20% of the Saudi employees working at a specific employer can be accounted for in the employer’s Saudization points.
Uh, Enterprise, what is Nitaqat? Nitaqat, introduced in 2011, is a Saudization program managed by the Human Resources and Social Development Ministry and aims at boosting the number of Saudi citizens in the private sector and narrowing the employment gap between the public and private sectors. The program rewards companies that are actively hiring Saudis through by making it easier to hire and retain foreign employees.
