New Saudi Labor Law of 2016

Are you aware of new labor laws announced by Saudi government? If not then here is news for you or if you work there then it can be a bad news for you. The news is Saudi government has announced a new labor law for expats. According to this law companies working in Saudi Arabia whether in government sector or private sector will restrict to hire only local Saudi people for specific job posts. The people already working on these posts are allowed to carry on working till their visa gets expired. However after visa expiration they won’t be able to renew their Visa under same job title. Currently Saudi government has announced only 19 job titles on which this rule will be applicable. All other jobs will be exempted from these rules. However it’s a possibility that they can include even more job titles in near future. Here is a full explanation of this new labor law.


What it States

 According to this law private and government sector companies will not be allowed to hire any immigrant or expat for nineteen job titles.  The employees already working on these posts will not be able to renew their Visa after its expiration.

The Job titles included

According to Saudi labor ministry officials currently this rule will be applicable for 19 job titles which they have announced in local news papers. These job titles includes HR managers of private and government sector companies, director of personal department, director of labor affairs,  head of personal relations department,  employment clerk, time keeper, receptionists in general offices, hospitals and hotels and typist.  These are the jobs the new labor rule will be applicable to. However in future government is more likely to include more job titles in this list.

Causes

There are different causes behind this new labor rule. The main cause is that the Saudi Government wants more control on expats. As you know that Saudi Arabia is like heaven on earth for expats because of high wages and lowest living cost. There is a huge workforce which is already working in Saudi Arabia from all over the world. It’s probably becoming difficult to manage this much numbers of immigrants so now they want more control on it. Another reason is the huge decline in oil prices from last few months. A huge percentage of Saudi economy relies on oil export and decline in oil price has worked as alarming caution for Saudi Arabia and now they want to reduce their dependency on it.


What to Do: There is nothing much to say about what to do after this rule. Quick answer is if you are looking for a job in Saudi Arabia as expat then postpone it for now or if you are already working their then be alert and keep finding more job opportunities in other countries. 
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