SANED Law

The following terms and phrases - wherever stated in these Regulations - shall mean the meanings given to them unless the context requires otherwise:

Law: unemployment insurance law.

Disruption of work: loss of the worker to work for reasons beyond his will with his ability to work, and desire, and look for him.

Compensation: The cash benefits provided by the system.

Ministry: Ministry of Labor.

Institution: General Organization for Social Insurance.

Fund: Human Resources Development Fund.

Board of Directors: Board of Directors of the General Organization for Social Insurance.

Minister: Minister of Labor.

Governor: Governor of the General Organization for Social Insurance.

Employer: Any person of a natural or legal nature to whom the law applies - uses one or more workers who meet the conditions stipulated in the Law.

Contributor: Anyone who is subject to the law, a man or woman.

Beneficiary: The unemployed participant who has the conditions of entitlement to compensation in accordance with the provisions of the Law.

Job seekers database: the database of applicants for the Fund.

In applying the provisions of paragraphs (1) and (2) of Article (Third) of the law, the age of the worker at the start of applying the law to him must be below the age of fifty-nine, and his contribution stops if he reaches the age of sixty while he is employed, and if the contributor has previously applied the law He has to work before reaching the age of fifty-nine, then he returns to the work subject to the law at the age of fifty-nine or more and under the age of sixty, so the law applies to him on the date of his return, taking into account the suspension of his participation if he reaches the age of sixty while he is at work.

The law is applied compulsorily to Saudis who are subject to the pension branch under the social insurance law, according to the following details:

1- Subject to the law:

A - The workers who have a contractual relationship with the employer, to perform work mainly inside the Kingdom in return for a wage, whatever the nature, form, or duration of this relationship, and whatever the amount or type of the paid wage.

b- Workers who work outside the Kingdom for an employer whose main headquarters is inside the Kingdom, when it is established that a work relationship exists between them and the employer.

C- Workers in government agencies and public institutions who are not subject to the civil or military retirement law.

2- The excluded groups:

A- The civil and military employees of the state who are covered by retirement laws. This exception does not extend to the retirees among them who meet the conditions for participation in the law.

B- Workers in any of the countries of the Cooperation Council for the Arab States of the Gulf who are subject to the unified law for extending insurance protection.

C- Workers employed in agricultural, forestry or grazing activities means everyone who works in forests, cultivating the land, guarding the crops, or operating or repairing agricultural machinery. This exception does not extend to workers who work in those activities if they are among the following categories:

1. Those who work in agricultural establishments that manufacture their products.

2. Those subject to the labor law.

3. Workers in government agencies and public institutions.

4. Workers in companies established in accordance with the provisions of the Companies Law or the Foreign Investment Law.

5. Workers in sole proprietorships in accordance with the controls set by the Governor.

D- Seafarers: They mean the workers who work on board sea vessels for transportation or fishing. This exception does not extend to workers in those activities if they are of the following categories:

1. The workers at the headquarters of the employer, who has taken the marine business or fishing as his craft, and if any of them is transferred to the marine business of the same employer, he continues to benefit from the law if it was applied in his regard.

2. Seafarers who work in marine establishments that manufacture what their ships catch, and the governor defines the concept of manufacturing intended by this provision.

3. Those subject to the labor law.

4. Workers in government agencies and public institutions.

5. Workers in companies established in accordance with the provisions of the Companies Law or the Foreign Investment Law.

6. Workers in sole proprietorships in accordance with the controls set by the Governor.

E- Domestic servants: They mean workers who work in domestic service.

F - Istisna'a workers: They are independent workers who work for themselves, and do not use any workers, and their place of work is their place of residence.

G- The employer's family members who work in family establishments in which no other workers are employed: They are the family members stipulated in Paragraph (8) of Article (2) of the Social Insurance Law.

The exception for the categories stipulated in paragraphs (c - d - e) does not prejudice the possibility of subjecting them to the law in the future by a decision of the Minister based on the approval of the Board of Directors.

1. The registration in the institution for each of the employers and contributors subject to the system is carried out in accordance with the same registration provisions stipulated in the registration and contributions regulations for the Social Insurance Law in accordance with the nature of the provisions of the system, considering the following:

A/ Registration in accordance with the provisions of the Regulations of Registration and Contributions to the Social Insurance Law is sufficient for registration in the system.

B/ It is not permissible, after the expiration of the deadlines set for the employer to register his workers, or for the worker to request registration himself, if the employer neglects to do so, to register any work periods retroactively.

2. The rules of the establishments whose activity has ended shall be determined in accordance with the same rules specified in the registration and subscription regulations for the Social Insurance Law.

In applying the provisions of Article (7) of the law, contributions are determined and amended according to the following mechanism:

1. Contributions shall be determined at the rate of (2%) two percent of the wage subject to contributions if the volume of assets for the branch account on the date of entry into force of the amendment of Article (7) of the Law (7) does not exceed seven times its expenses in the year preceding the date of entry into force.

2. Contributions shall be amended - at a rate not exceeding (2%) two percent and not less than (0.5%) half a percent of the wage subject to contributions - based on the results of evaluating the financial condition of the branch account every three years, according to the following:

A- Reducing the contributions by (0.5%) half a percent if the volume of assets of the branch at the end of the three (7) years exceeds seven times its expenditures in the last year thereof.

B- Increasing the contributions by (0.5%) half a percent in case the volume of assets of the branch at the end of the three years decreased to (7) seven times its expenses in the last year thereof.

Regarding the payment of the contributions stipulated in the law, the same provisions contained in the registration and contribution regulations for the social insurance law shall be applied in accordance with the nature of the provisions of the law.

The age of the contributor shall be registered at the start of the contribution in accordance with the provisions of Article (Seventeen) of the Law and the provisions specified in the Registration and Contributions Regulations of the Social Insurance Law.

In applying the provisions of Article (8) of the law, the following should be taken into account:

1. The document issued by the competent authority shall be legally used in proving the condition of Saudi nationality.

2. It is required that the necessary subscription periods be available for each time of entitlement, as specified in Article (14) of the Law.

3. The subscriber's age on the date of registration with the fund is less than (60) sixty years.

4. (He should not have income from work) What is meant by income from work is everything that the contributor receives in exchange for his work for one or more employers, whether in the public or private sector.

5. (It shall not have a private activity), and by private activity it means - for example but not limited to - any of the following cases:

A - Own a sole proprietorship.

B- Partnership in any of the companies according to what is proven in the company’s articles of association or articles of association and any amendments to any of them.

C- Obtaining a license to practice an activity.

d- The presence of non-Saudi workers under the sponsorship of the contributor, with the exception of domestic workers, parents, husband or wife, and sons and daughters.

6. The condition that (the contributor is not dismissed from work for a reason attributable to him) means that the contributor is not dismissed in accordance with the provisions of Article (80) of the work law.

7. The condition (that the contributor has not left the work of his own free will) means that he does not leave the work because of his unwillingness to continue with it, including that the leave of the work is not due to any of the following cases:

A - Resignation.

b- The contributor's agreement with the employer to terminate the work contract.

c- Non-renewal of the fixed-term contract based on the contributor's unwillingness to renew it

8. The fund determines the contributor’s ability to work, and the fund has the right - without prejudice to the decisions issued by the medical committees stipulated in the social insurance system - to refer any contributor who applies for compensation or any beneficiary of compensation to any governmental or private hospital or medical center to conduct examinations necessary to ensure his ability to work, or to require the contributor or beneficiary to submit a medical report issued by a government hospital proving his ability to work.

9. In the application of items (i, j, k) of paragraph (1) of Article (eight) of the law, the contributor must comply with the following at each time of the compensation entitlement:

A/ Attend and pass the educational and training courses specified by the Fund, including distance training.

B/ Visit his electronic file in the database of job seekers, as determined by the fund.

C/ Attending at the specified time for conducting personal interviews with business owners or with government or private agencies, as determined by the Fund.

D/ Accepting suitable job offers offered to him by the Fund or any entity assigned by the Fund as determined by the Fund.

E/ Attending the Fund or any entity authorized by the Fund to obtain qualification, training or employment services as determined by the Fund.

And / compliance with the instructions and directives set by the fund.

10. The fund - according to the mechanism it determines - will send a warning to the beneficiary if he does not comply with any of the provisions contained in Paragraph (9) of this Article.

In applying the provisions of Articles (9 and 10) of the system, the following must be observed:

1. The contributor is obligated to register with the fund no later than (90) ninety days from the date of leaving the work subject to the system according to the mechanism and documents determined by the fund.

2. Coordination takes place between the Foundation and the Fund to verify the availability of the conditions for entitlement to compensation stipulated in Article Eight of the Law, according to the following:

A/ The organization verifies that the contributors has met the following conditions:

- To be a Saudi citizen in accordance with the provisions of Paragraph (1) of Article (6) of these regulations.

- He's still alive.

- That he has the contribution periods that qualify for entitlement according to the provisions of Article (14) of the law.

He must not have reached the age of sixty in accordance with the provisions of Paragraph (3) of Article (6) of these regulations.

- Not to have a private activity or income from work in accordance with the provisions of paragraphs (4) and (5) of Article (6) of these regulations.

- Not to have been dismissed from work for a reason attributable to him in accordance with the provisions of Paragraph (6) of Article (6) of these regulations.

- Leaving work should not be of his own free will in accordance with the provisions of Paragraph (7) of Article (6) of these bylaws.

B/ The fund verifies that the contributor has met the following conditions:

- Registering with the Fund within (90) ninety days from the date of leaving the work subject to the law.

- The contributor's ability to work in accordance with the provisions of Paragraph (8) of Article (6) of these Regulations.

Serious job search, commitment to training, and adherence to instructions and directives as stipulated in Paragraph (9) of Article (6) of these regulations.

3. After fulfilling the provisions of the previous paragraph (2), the contributor must apply to the organization for obtaining compensation according to the mechanism and documents specified by the Governor, and the date of completion of his registration with the Fund, in the event that all other conditions continue to be met, is the date of fulfillment of the eligibility conditions.

4. The organization and the Fund shall verify the continued availability of the conditions for entitlement to compensation for the beneficiary - each in his own jurisdiction - throughout the period of disbursement of compensation.

5. The previous paragraphs shall be complied with at each entitlement time.

In applying the provisions of Paragraph (2) of Article (10) of the system, the beneficiary is obligated to the following:

1. Notifying the Fund within a period not exceeding seven days in the event of any change in the data and information provided to the Fund.

2. Notifying the institution within a period not exceeding seven days in the event of any change in any of the data and other information related to the application of the provisions of the law.

In applying the provisions of Paragraph (3) of Article (10) of the Law, the reasons for the termination of the work relationship with regard to the implementation of the provisions of the Law shall be considered as the reasons specified by the employers when excluding the contributor according to what is recorded in the establishment’s records, and in the event that the contributor objects to the validity of the reasons Determined by the employer, he can resort to the competent judicial authority to look into labor cases, without prejudice to the right of the establishment to impose the penalties stipulated in Article (twenty-five) of the law on the employer who violates any provision of the system and the regulations.

If the organization pays the beneficiary amounts more than what he is legally entitled to, then the organization is entitled in all cases to recover what was spent in excess according to the same provisions stipulated in the compensation regulations of the pension branch of the social insurance law.

In the application of Paragraph (1) of Articles (Eleventh and Twelfth) of the Law, the months mentioned herein mean the months of entitlement to compensation at each time of entitlement, whether continuous or intermittent.

In applying Paragraph (2) of Article (Eleven) and Article (Thirteen) of the Law, the following shall be observed:

1. The provisions stipulated in the Social Insurance Law and its implementing regulations shall apply to the average monthly wages.

2. Without prejudice to the provisions of Paragraph (3) of this Article, if the beneficiary returns to work during the one-time period of the entitlement times, the compensation will be calculated in the event of his leaving the work, provided that the eligibility conditions are met on the basis of the contributory wage for the last twenty-four months, including the last twenty-four months. Previous subscription to leave the last work.

3. The maximum period for disbursing compensation at each entitlement time is twelve consecutive or intermittent months during every twenty-four consecutive months, starting from the date of the first disbursement in each time.

In applying the provisions of Paragraph (1) of Article (fifteen) of the system, the payment of compensation to the beneficiary will be suspended - for each time of entitlement - in any of the following cases:

1. Death.

2. If he is no longer a Saudi citizen according to the document issued by the competent authority.

3. If the period of his stay outside the Kingdom of Saudi Arabia exceeded (60) sixty days - continuous or intermittent - during the compensation disbursement period.

4. If he has reached the age of sixty and is entitled to a pension in accordance with the provisions of the social insurance law and is considered to be entitled to a pension who has the qualifying period for entitlement to a pension by adding a legal period.

5. If he has a private activity or income from work in accordance with the provisions of paragraphs (4) and (5) of Article (6) of these regulations.

6. If he becomes unable to work in accordance with the provisions of Paragraph (8) of Article (6) of these regulations.

7. If he is no longer registered with the fund and is considered unregistered in any of the cases that necessitate stopping the payment of compensation.

8. If he rejects three suitable job offers - successive or sporadic - that are offered to him by the Fund, or any entity assigned by the Fund as determined by the Fund.

9. If he did not join or did not successfully complete any educational or training course, including remote training, for four times - consecutive or sporadic - without an excuse accepted by the Fund or authorized by the Fund, and the beneficiary may apologize in advance for joining an educational or training course requested by the Fund. Or the person authorized by the fund to join it, provided that his apology is based on acceptable reasons according to what the fund or the delegate from the fund deems appropriate in this regard. Nevertheless, the beneficiary may not apologize more than twice during the period of compensation disbursement.

10. If he does not appear on the dates set by the Fund for personal interviews with employers and government and private agencies for four times - consecutive or sporadic - without an excuse accepted by the Fund or the delegate from the Fund, and the beneficiary may apologize in advance for the personal attendance of the date set by the Fund or the delegate from the Fund. To meet business owners or representatives of governmental or private agencies, provided that his apology is based on acceptable reasons according to what the fund or the fund’s delegate deems appropriate in this regard. Nevertheless, the beneficiary may not apologize more than twice during the period of compensation disbursement.

11. If he does not visit his electronic file in the database of job seekers at least once a week for a period of six weeks - consecutive or sporadic - without an excuse accepted by the Fund.

12. Failure to attend the Fund or any entity authorized by the Fund to obtain qualification, training or employment services for four times - consecutive or sporadic - without an excuse accepted by the Fund or the delegate from the Fund, and the beneficiary may apologize in advance for attending the Fund or the delegate from the Fund, provided that His apology shall be based on acceptable reasons according to what the fund or the fund’s delegate deems appropriate in this regard. Nevertheless, the beneficiary may not apologize more than twice during the compensation disbursement period.

13. Any case in which the beneficiary is not serious about looking for work or rehabilitation as determined by the Fund.

14. If any of the conditions for entitlement to compensation lapses.

In applying the provisions of paragraph (2) of Article (fifteen) of the system, the following should be considered - at each time of entitlement:

1. If the suspension of compensation is due to death, or reaching the age of sixty with entitlement to a pension in the social insurance system, or staying outside the Kingdom for more than (60) sixty days - continuous or intermittent -, or fulfilling any of the cases specified in Paragraphs (8, 9, 10, 11, 12, 13) of Article (13) of these Regulations, as this is considered an end to the relationship between the Corporation and the contributor with regard to the remaining period for the payment of compensation.

2. If the suspension of the compensation payment was due to the existence of income from work or the inability to work, then in order to consider the removal of the impediment in this case, the contributor must register with the Fund within (90) ninety days from (the date of leaving work or the date of regaining his ability to work - according to the case), and the disbursement is resumed in this case - after verifying the availability of the rest of the other conditions - from the beginning of the month following registration.

3. If the suspension of the payment of compensation is due to the fact that he is no longer a Saudi citizen, then in order to consider the demise of the impediment in this case, the subscriber must register with the Fund within ninety (90) days from the date of the document evidencing his recovery of nationality issued by the competent authority, and the disbursement shall be resumed in this case - After verifying the availability of the rest of the other conditions - from the beginning of the month following registration.

4. If the suspension of the compensation payment was due to the existence of a special activity, then in order to consider the removal of the impediment in this case, the contributor must register with the Fund within (90) ninety days from the date of the document evidencing the termination of his relationship with this activity issued by the competent authority, and the disbursement shall be resumed in this case - After verifying the availability of the rest of the other conditions - from the beginning of the month following registration.

5. The contributor is required to resume the disbursement in any of the cases mentioned in paragraphs (2, 3, 4) of this Article to submit to the Institution a request for the disbursement of compensation according to the mechanism specified by the Governor.

In applying the provisions of Article (Sixteenth) of the law, the method of calculating the months of contribution that are registered for the benefit of the contributor is determined according to what is stipulated in the compensation regulations of the pension branch of the social insurance law.

In applying the provisions of Article (20) of the law, the following shall be considered:

1. The contributor who fulfills the eligibility conditions shall submit to the organization a request for the payment of compensation according to the mechanism and documents specified by the Governor.

2. Compensation entitlement starts from the first month following the date on which eligibility conditions are met, and compensation is due in advance as of that date.

3. The right to compensation expires at the end of the last day of the month in which the incident occurred the right to terminate it.

4. For the purposes of applying the provisions of Article (14) of these Regulations and the provisions of Paragraphs (2) and (3) of this Article, the month considered for entitlement to compensation - stipulated in these Regulations - and the expiry of the right to that compensation is the month determined according to the Gregorian calendar.

5. The compensation due - stipulated in these regulations - shall be disbursed according to the Gregorian calendar, considering that the periodic disbursement dates for compensation do not exceed the first week of every month of the same calendar.

By a decision of the governor, the date of disbursement may be advanced in the cases in which he deems it appropriate.

In applying the provisions of Article (twenty-two) of the law, the following must be observed:

1. The organization’s inspectors monitor the implementation of the system in accordance with the provisions stipulated in the registration and subscription regulations for the social insurance law, in accordance with the nature of the law.

2. The Fund shall, in coordination with the Ministry, monitor the application of the law in accordance with the provisions and procedures followed by the Ministry.

In the application of the provisions of Article (twenty-three) of the law, the objections submitted to the decisions issued by the organization’s organs in relation to its tasks in applying the law shall be followed with the same provisions related to the principles of submitting objections and the procedures for considering them stipulated in the registration and subscription regulations for the social insurance law.

In the application of the provisions of Article (24) of the law, the objections submitted to the decisions issued by the Fund's organizations in relation to its tasks in applying the law shall be followed with the same provisions related to the rules for submitting objections and the procedures for their consideration in force at the Fund.

In applying the provisions of Paragraph (4) of Article (25) of the Law, the following shall be considered:

1. The Governor shall form one or more committees to investigate violations related to the organization’s duties in applying the provisions of the law, and to determine penalties.

2. The Minister shall form one or more committees to investigate violations related to the functions of the fund in applying the provisions of the law, and to determine penalties.

In applying the provisions of Article (6) of the law, a committee shall be formed - by decision of the Minister - from each of the Ministry, the Fund and the organization, three members from the Ministry and the Fund, and three members from the organization, including the chairman of the committee, and the task of the committee shall be the following terms of reference:

a- Supervise the implementation of the provisions of the law.

B- Proposing amendments to the regulations to achieve the necessary requirements for the purposes of implementing the provisions of the law.

C - Coordination between the competent authorities whenever necessary.

The organization undertakes the secretariat of the work of the committee and calls for its meetings. The meeting of the committee is not valid unless attended by at least four members, and the decisions of the committee are issued by most of the opinions of the members present, and when equal, the side of the committee chair will prevail.

This regulation shall be published in the Official Gazette and shall come into force as of the date specified for the implementation of the law.