New Law Requires Some Employers to Upload Employment Contracts to Online Portal
July 31, 2019 | Saudi Arabia
Private sector employers are now required to upload the employment contracts of all of their employees to the online portal of the General Organization for Social Insurance (GOSI) under a new law implemented by the Ministry of Labor and Social Development (MLSD). The contracts must be uploaded per a specific schedule based on the company’s headcount, as follows:
- Companies with a headcount of 1-49 must upload 20% of their contracts by Q2 2020, 50% by Q3 2020 and 100% by Q4 2020.
- Companies with a headcount of 50-499 must upload 20% of their contracts by Q1 2020, 50% by Q2 2020 and 100% by Q3 2020.
- Companies with a headcount of 500-2,999 must upload 20% of their contracts by Q4 2019, 50% by Q1 2020 and 100% by Q2 2020.
- Companies with a headcount of 3,000 or more must upload 20% of their contracts by Q3 2019, 50% by Q4 2019 and 100% by Q1 2020.
All contracts must meet the MLSD’s regulatory requirements and include certain information. The MLSD has not yet clarified exactly what employers whose contracts do not initially meet the requirements will have to do to comply.
The purpose of the new law and requirement is to ensure all contracts are standardized and comply with specific regulations to reduce contract disputes and to ensure clarity when disputes occur. Employees will also have online access to their contracts.