Special Exemptions from Labor ...

Wage protection in Saudi Arabia has become a cornerstone of labor reforms, ensuring that workers’ rights are safeguarded through timely and accurate payment of wages. This system, known as the Wage Protection System (WPS), has transformed how businesses handle payroll and how workers are compensated. But what is the WPS, and why was it introduced?

Exemptions from Articles 98, 101, and 104 of the Labor Law: Special Cases to Ensure Work Continuity

Balancing workers' rights and employers' needs is crucial to maintaining efficient work operations. Accordingly, the Labor Law allows employers to exempt themselves from the provisions of Articles 98, 101, and paragraph (1) of Article 104 under specific circumstances, aligning with the necessity to continue work in certain exceptional situations. The following are explanations of these cases:

1. Annual Inventory, Budget Preparation, Liquidation, Account Closing, Sale Preparation at Discounted Prices, and Seasonal Preparations:

Employers are allowed not to adhere to the mentioned articles during periods of annual inventory, budget preparation, liquidation, account closing, preparation for sales at discounted prices, and seasonal preparations, provided that the number of days workers are employed in these cases does not exceed thirty days in a year.

2. Preventing Dangerous Incidents or Repairing Resulting Damage or Avoiding Significant Loss of Perishable Materials:

Employers may exceptionally employ workers to prevent dangerous incidents, repair resulting damage, or avoid significant loss of perishable materials. These cases require immediate intervention to protect property and lives, necessitating exemption from the mentioned articles.

3. Facing Unusual Work Pressure:

In cases of facing unusual work pressure, employers are allowed to exceptionally employ workers to meet work demands. This includes periods that witness a sudden increase in demand for products or services, necessitating intensified efforts to meet market needs.

4. Holidays, Seasons, Other Occasions, and Seasonal Work Defined by Ministerial Decision:

Holidays, seasons, and other occasions, along with seasonal work, justify exemptions from the mentioned articles. These cases are determined by a decision from the competent minister to ensure work demands are met during these periods.

Overtime Work Restrictions:

Despite the mentioned exemptions, actual working hours in all the advanced cases must not exceed ten hours per day or sixty hours per week. The minister, by decision, determines the maximum allowable overtime hours per year to ensure workers are not exploited and their health and safety are maintained.

These exemptions aim to achieve a balance between the necessity of maintaining efficient work operations and workers' rights to appropriate working conditions. By allowing some flexibility in specified exceptional circumstances, employers can meet work demands without compromising workers' rights or subjecting them to excessive fatigue. These exemptions remain governed by ministerial decisions to ensure fair and equitable application for all.

Learn More About Wage Protection in SA