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April 16, 2024 - BY Mohamed Abdulaziz

Exceptions in the Saudi Labor System: Understanding and Application

In the context of regulating the relationship between employers and employees in the Kingdom of Saudi Arabia, Article 86 of the Saudi Labor System serves as a legal framework that specifies some exceptions that can be agreed upon between the parties. Among these exceptions is the agreement not to include certain elements in the wage paid to the worker, which may include end-of-service benefits and other elements.


The article allows for agreements between the parties not to include certain elements in the wage received by the worker, such as commission amounts and percentage shares of sales prices, and other elements considered part of the wage. These elements are naturally subject to increase and decrease, in line with the nature of the work and its circumstances.


However, this exception must be carefully understood to ensure that workers are not exploited or subjected to injustice. Agreements reached must be based on equality and justice between the parties and must respect the rights of the workers and provide them with necessary protection.


One positive aspect of this exception is that it allows companies and employers greater flexibility in determining the terms of employment contracts, enabling them to organize the employment relationship in a manner that suits the needs and nature of the work.


However, companies and employers must use this exception wisely and responsibly, ensuring that agreements reached preserve the rights of workers and do not harm their legal entitlements.


In conclusion, understanding Article 86 of the Saudi Labor System requires a thorough and comprehensive understanding of the laws and regulations related to employment in the Kingdom, and the necessity of applying them fairly and justly, while considering the rights of workers and ensuring their protection at all times.

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