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An Employment Policy sets the ground rules between employers and employees in Saudi organizations, following the Kingdom's Labor Law guidelines. It spells out everything from working hours and leave policies to conduct expectations and disciplinary procedures - essentially creating a clear roadmap for the employment relationship.

Under Saudi regulations, companies with 10 or more workers must have a written employment policy approved by the Ministry of Human Resources. These policies protect both sides by establishing fair practices around important matters like Saudization requirements, religious accommodations, and workplace safety while helping organizations maintain consistent standards across their workforce.

Create an Employment Policy when starting a new business in Saudi Arabia or updating workplace rules for an existing company. This is especially important when your workforce reaches 10 or more employees, as it becomes a legal requirement under Saudi Labor Law.

Use it to establish clear guidelines during major organizational changes, when expanding operations, or hiring new types of workers. The policy proves particularly valuable when addressing workplace conflicts, implementing Saudization quotas, or responding to Ministry of Human Resources audits. Having it ready before issues arise helps prevent disputes and ensures consistent treatment of all employees.

• Employment Contract Policy: Core policy covering basic employment terms, compensation, and general workplace rules for all staff members
• Employment Termination Policy: Specific guidelines for ending employment relationships, including notice periods and final settlements
• Flexible Working Contract: Specialized policy for remote work, part-time arrangements, and alternative scheduling options
• Private Company Termination Policy: Customized termination rules for private sector entities, addressing sector-specific requirements

• HR Directors and Legal Teams: Draft and update the Employment Policy to align with Saudi labor laws and company practices
• Company Management: Review, approve, and ensure implementation of policy provisions across departments
• Ministry of Human Resources: Reviews and approves policies, ensuring compliance with Saudi regulations and Saudization requirements
• Employees: Must understand and follow policy guidelines regarding work hours, leaves, conduct, and other workplace rules
• Labor Courts: Reference these policies when resolving employment disputes between companies and workers

• Company Details: Gather basic information about workforce size, industry type, and operational structure
• Legal Requirements: Review current Saudi Labor Law provisions and Ministry guidelines for your sector
• Work Arrangements: Document your working hours, leave policies, and any special scheduling needs
• Compensation Structure: List salary grades, benefits, and bonus systems following Saudi standards
• Disciplinary Procedures: Outline fair warning systems and corrective measures
• Document Generation: Use our platform to create a compliant policy that includes all required elements
• Internal Review: Have key stakeholders review before submission to the Ministry

• Basic Information: Company name, registration details, and policy effective date
• Work Hours: Regular hours, overtime rules, and prayer break provisions
• Leave Policies: Annual, sick, maternity/paternity, and Hajj leave entitlements
• Compensation Terms: Salary structure, allowances, and payment schedules
• Conduct Rules: Dress code, behavioral expectations, and religious accommodations
• Disciplinary Process: Clear violation categories and progressive discipline steps
• Saudization Compliance: Local hiring quotas and training commitments
• Grievance Procedures: Steps for filing and resolving workplace complaints

An Employment Policy differs significantly from a Corporate Policy in several key ways. While both are essential organizational documents, they serve different purposes and have distinct scopes under Saudi law.

• Scope and Focus: Employment Policies specifically govern employer-employee relationships and workplace practices, while Corporate Policies cover broader organizational governance, including stakeholder relations and business operations
• Legal Requirements: Employment Policies must comply with Saudi Labor Law and Ministry of Human Resources regulations, including specific Saudization quotas. Corporate Policies follow general business regulations and company law
• Implementation Level: Employment Policies directly affect daily worker interactions and rights, while Corporate Policies guide high-level decision-making and strategic direction
• Approval Process: Employment Policies require Ministry approval when companies have 10+ employees, whereas Corporate Policies typically only need internal board approval