Continuity of Workers' Rights ...

Article 18 of the Saudi Labor System is one of the provisions that regulate the relationship between employers and employees, addressing the issue of changing the ownership of a facility and its impact on employment contracts and workers' rights. This article aims to provide protection for workers and ensure the continuity of their rights in the event of a change in ownership or a change in the legal structure of the establishment.

Here is the text of Article 18 from the Saudi Labor System:

If ownership of the facility is transferred to a new owner, or if there is a change in its legal form through merger, division, or otherwise, the employment contracts remain valid in both cases, and the service is considered continuous.

As for the rights of workers arising from the period preceding this change, such as salaries, end-of-service gratuity presumed due on the date of ownership transfer, or other rights, both the new and the former owner are jointly responsible for them. In the case of the transfer of individual establishments for any reason, it is permissible for the former and new owners to agree, with the written consent of the worker, to transfer all the rights of the previous workers to the new owner. If the worker does not agree, he has the right to request the termination of his contract and receive his entitlements from the former owner.