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AL-WASMI HOLDING COMPANY HR POLICIES & PROCEDURES

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Page 1: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

AL-WASMI HOLDING COMPANYHR POLICIES & PROCEDURES

[HUMAN RESOURCES PROCEDURE MANUAL]

Page 2: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

(I) OBJECTIVE OF HR POLICY MANUAL

(II) COMPANY VISION

(III) COMPANY PHILOSOPHY

(IV) OUR CULTURE

(V) HR VISION

(VI) HR MISSION

(VII) HRD QUALITY OBJECTIVES

(VIII) HR STRATEGY

Page 3: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

INTRODUCTIONAL-WASMI HOLDING COMPANY Human Resources Policy and Procedure Manual provide the policies and procedures for managing and developing staff. It also provides guidelines to administer these policies, with the correct procedure to follow.

AL-WASMI HOLDING COMPANY will keep HR Policies current and relevant. Therefore, from time to time it is necessary to modify and amend some sections of this policies and procedures, or to add new procedures.

Any suggestion, recommendations or feedback on the policies and procedures specified in this manual are welcome.

These policies and procedures apply to all AL-WASMI HOLDING COMPANY Employees.

ABDUL AZIZ WASMI AL KHALEEBCHAIRMAN

Page 4: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

General conditions

Purpose and scope

The purpose and benefit of the Human Resources Policies and Procedures Manual (also called the

Personnel Manual) is to:

Document the Personnel policies of Al-Wasmi Holding Company in a complete and up-to-

date format

Provide a basis for management to ensure that personnel policies are applied fairly,

uniformly and consistently. Supplement and clarify the terms stated in employment

contract.

Serve as a point of reference and confirmation for all HR staff that policies and procedures

are being properly applied

Provide a management tool to assist in addressing personnel issues

Provide continuity of personnel procedures despite changes in personnel

Promote compliance with Saudi Labour Law.

In case of conflict with other policies provided in the Labor Law, the Labor Law will supersede the

company’s Human Resources Policies.

Abbreviations and Definitions

Chairman : Chairman

GM : General Manager – Operation

GM : General Manager – Pipeline Division

FM : Finance Manager

HRM : Human Resources Manager

Management : Project Manager, Procurement Manager,

Contracts Manager, QA/QC Manager, IT Manager, PCD

Manager, Store Manager, Safety Manager, Quality Management

Representative

Professional : Engineers, Inspectors, Supervisors

Skilled/Rank & File: Staff

Page 5: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

Responsibilities

The Human Resources Manager is the controller of this manual. All inquiries and issues relating to

the manual should be addressed to him.

The Company’s Quality Management Representative upholds the administrative responsibilities

spelled out in this Manual and are also responsible for the effective enforcement of the Company

Rules and Regulations.

Contents of this manual are confidential and intended for internal use only. Under no circumstances

may the contents of this manual be revealed to third parties without the express written permission

of the Chairman.

Duties, Obligations, and Privileges

Business Ethics

Al-Wasmi Holding Company requires all its employees to observe high standards of business and

personal ethics in conducting their duties and responsibilities.

The protection of confidential information is vital to the interests and success of Al-Wasmi

Holding Company. Employees shall refrain from doing any activities in which they could use, or

might appear to have the opportunity to use information of special knowledge as a result of their

relationship with Al-Wasmi Holding Company, for their personal gain. No confidential

information may be divulged to any party unless specifically authorized.

All employees shall discharge their duties and responsibilities in a manner consistent with these

policies and consistent with all applicable laws of any country in which they perform work for Al-

Wasmi Holding Company.

Employees who fail to act responsibly or are found to have violated the provisions of these policies

will be subject to disciplinary action, including termination of employment.

Conflict of Interest

Each employee has a duty to act in the best interest of Al-Wasmi Holding Company It is

imperative for employees not to compromise themselves in the discharge of their duties by offering

to accept, directly or indirectly, any gift, reward, benefit, or favour or using their position for

personal or private gain.

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Employees, who have, directly or through family or business connections, an interest in supplier of

goods or any service providers, or in contractors or potential contractors with Al-Wasmi Holding

Company, shall not act for Al-Wasmi Holding Company in any transaction involving that interest.

No staff shall participate in the selection, award or administration of a contract with any party with

whom he or she is negotiating potential employment or has any arrangement concerning potential

employment.

Employees shall avoid outside employment or business activity involving obligations which may in

any way conflict, or appear to conflict, with Al-Wasmi Holding Company interest.

Each employee shall provide full disclosure of any business or financial enterprise or activity in

which he or she is involved which might influence, or might appear to have the capacity to influence

his or her official decisions or actions on Al-Wasmi Holding Company matters. Disclosure shall be

in writing, submitted to the HR MANAGER.

No employees shall act in any Al-Wasmi Holding Company matter involving a member of his or

her immediate family, including but not limited to, matters affecting such family member’s

employment, evaluation or advancement in Al-Wasmi Holding Company, without first making full

disclosure to the HR MANAGER.

Employees are prohibited from having direct or indirect personal interest in outside business

activities or seeking to do business with our clients, other than them being employees of Al-Wasmi

Holding Company doing business with our clients.

Implementation

The HR MANAGER is responsible for obtaining a signed statement from each employee,

acknowledging these business ethics and conflict of interest policies and undertaking to comply

with them.

References

Saudi Labour Law issued by Decree M/51, dated 23/8/1426H.

Saudi Labour Law issued by Decree M/46, dated 05/06/1436H.

Resources

Nil

Page 7: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES
Page 8: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

TABLE OF CONTENTS

Chapter – 1 Manpower Planning & Recruitment Page

Chapter – 2 Work Schedule, Breaks & Overtimes Page

Chapter – 3 Salaries, Bonuses & Allowances Page

Chapter – 4 Benefits Page

Chapter – 5 Vacations Page

Chapter – 6 Employee’s Performance Appraisal Page

Chapter – 7 Compensation of Expenses Page

Chapter – 8 Work Relations Page

Chapter – 9 End of Service Page

Chapter – 10 Government Relations Page

Chapter – 11 Authority Matrix Page

Page 9: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

CHAPTER 1

MANPOWER PLANNING & RECRUITMENT

Manpower Planning

Objectives

Manpower Plan

1.0 : Policy & Purpose

1.1 : Saudization

1.2 : Recruitment Budgeting

1.3 : Job Description

1.4 : Recruiting / Resources

1.5 : Recruitment Process

1.5.1 : In-Kingdom Recruitment

1.5.2 : Overseas Recruitment

1.5.3 : Transfer

Databank of Curriculum Vitae

1.6 : Interview & Selection Process

1.7 : Employment Offer and Employment Contract

1.8 : Crew Induction Program

1.9 : Effective Date of Employment and Joining Report

1.10 : Transfer of Sponsorship

1.11 : Employee’s File

1.13 : Limitation to the Policy

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Manpower Planning

Manpower Planning is an annual exercise carried out at the beginning of each fiscal year

conducted in-line with the overall strategy of the company and based on the anticipated

personnel needs and organizational structure.

Objectives

The objectives of manpower planning at Al-Wasmi Holding Company are to:

Ensure adequate manpower resources with a proper blend of Skill and Knowledge

and to ensure that balance is maintained in terms of Age-mix, Qualification-mix &

Skill-mix to meet its operational requirements.

Assess the financial implications of manpower resources.

Meet Saudization requirement of Government.

Enable requisitioning for allocation of work visas.

Initiate process of recruitment to ensure availability of manpower, as and when

required.

Preferred method of filling job vacancies is through internal promotion and

transfer.

Manpower Plan

Project Managers and Department Heads provide their projections of the staffing levels

required for their respective departments / projects.

Details of current staffing position projected staffing requirements and the planned

methods of filling the job vacancies. HR Manager is responsible for final preparation of

the manpower plan. The General Manager approved the Manpower Plan.

Decisions regarding the non-renewal of contracts for existing employees (based on

appraisals) are incorporated at this stage.

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General Manager and Department Heads identify the method (i.e. internal transfer, local

or foreign recruitment) for filling each vacancy at Head Office keeping in view the

various government regulations in effect.

Based on final list of vacancies, HR Manager identifies positions that require new visas

and initiates the process for applying for allocation of work visas.

The HR Manager files the details of the Manpower Plan.

During the subsequent periodic reviews of the Business Plan, the Manpower Plan is also

reviewed and updated if considered necessary.

RECRUITMENT

1.0: Policy & Purpose

The Recruitment Policy at Al-Wasmi Holding Company aims at enriching its talent

pool by acquiring skills and functional expertise that strengthen its goal to become a

leader in its chosen areas on the pivots of a set of committed, motivated and

empowered employees.

The objective of the Recruitment Policy is to source the best talent from Internal

and External resources to achieve the Business Objectives and Goals of the

Company. Meet the Saudization Percentage needed by Labor Office. Meet the

position requirements of the job in terms of qualifications, experience and other

criteria used in evaluation of candidates (job Description)

Al-Wasmi Holding Company shall employ sell sufficient, well trained qualified,

skilled professional and craft workforce to execute all the construction activities.

The craft labour should read and write English to facilitate accurate

communications.

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Based on the forecast requirements for manpower pooling, an application shall be

made for a block visa for the importation of all the necessary labour which are

available in the company and from the local supply. The block visa will be filled as

required for the efficient utilization of labour during the construction phase. It may

be amended by subsequent application following definite planning exercise and

during the project in the light of updated requirements.

Al-Wasmi Holding Company shall give priority to the recruitment of professional

and crafts people who have been employed previously and with good track record.

Many Al-Wasmi Holding Company employees have been loyal to the company and

have advanced their careers through the training and skill-polishing programs of Al-

Wasmi Holding Company. Normally, Al-Wasmi Holding Company personnel are

recruited from the Indian sub-continent (India, Nepal, Sri Lanka, Bangladesh and

Pakistan) and from the Far East (Philippines) and Middle East.

Every new employee will be given a full safety training course before starting work

which includes orientation and induction into both Client’s and Subcontractors

safety methods and procedures.

1.1: Saudization

All things being equal and to promote Saudization in Al-Wasmi Holding Company,

Saudi candidates will be given preference over others in the recruitment and

selection of candidates for employment especially in departments/crew teams with

low percentage of Saudi workers.

HR Department is committed to meet Saudization requirement set by Ministry of

Labor and Clients and to comply with applicable Saudi Laws to have high percentage

of Saudi workers.

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1.2: Recruitment & Budgeting

Upon approval of the Annual Manpower Plan, it will be the responsibility of the HR

Manager in coordination with Department Heads to prepare the Recruitment Budget

in the last quarter of year for all positions that need to be filled in the following year.

This is to be submitted to the General Manager and Finance Manager for planning the

company wide budget at the end of the third quarter of each year.

1.3: Job Description

Department Heads and Project Managers in coordination with HR Department will

prepare (as needed) written and approved job descriptions for each position. Job

descriptions shall include a position title, typical duties and responsibilities,

educational or experience qualifications required, type and extent of supervision

received and given, and any other pertinent information.

All job description should be continually updated to reflect changes in job

responsibility. Periodic review, at least annually or whenever there is a change in the

organizational structure or a change in job responsibility is necessary.

1.4: Recruiting / Resources

Internal Selection: Al-Wasmi Holding Company gives priority to its employees, by

promoting qualified applicants within the company for vacant position(s).

Saudi Nationals will be given preference over Non-Saudi employees. If no qualified or

suitable Saudi employee is found, then non-Saudi employee is considered for

promotion.

External Recruiting: An advertisement is placed in local newspapers under the

approval of the General Manager and in consultation with appropriate department

heads.

Page 14: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

1.5: Recruitment Process

1.5.1 in-Kingdom Recruitment

Saudi candidates are preferred over non-Saudi candidates if the recruitment

is from within the Kingdom, however in vice-versa a Non-Saudi candidate is

considered.

Process details

1. Recruitment Request Form – for new hire and replacements

2. Candidate identification – CV’s – HR department

3. Shortlist candidates – presented to Department Manager

4. Candidate assessment – interview (panel comprising HR representative,

Direct Department Head) and tests

5. Candidates selection

6. Employment offer – present to candidate, acceptance and/or negotiation

1.5.2 Overseas Recruitment

Recruitment from other countries is through recruiting firms, if suitable

candidate is not available in the Kingdom.

1.5.3 Transfer

Objectives

Employee Transfer is carried out to achieve following objectives:

1. Develop human resources of the company

2. Fill vacancy in another department or location

3. Change staffing in a department/location, if considered necessary by

management

4. Provide alternative jobs to existing employees.

5. All decisions regarding transfers are to be approved by HRM of Al-Wasmi

Holding Company.

Internal Transfer (Department to Department)

Inter departmental employee transfer is subject to the following conditions:

1. The position to which the employee is to be transferred is approved

under the Company’s organization structure and annual manpower plan,

Page 15: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

2. The proposed employee fulfills the position requirements,

3. The position to which an employee is transferred is at least at the same

grade as the current position held by employee.

Data Bank of Curriculum Vitas

1. Recruitment section will maintain a Data Bank of CVs of potential

candidate for a period not exceeding 6 months. This Data Bank will

replenish CVs received from all sources.

2. All CVs' received through above sources are screened, evaluated and

stored in the Data Bank by converting these into Wasmi Holding

Company format and allotting a unique number.

3. During the recruitment process priority is given to CVs stored in the Data

Bank. CVs matching position requirement will be sent immediately to the

concerned Department-in-charge for review and selection. In case no

qualified candidate is found, recruitment section will utilize other

options.

1.6: Interview & Selection Process

Qualified applicants are required to fill in an Employment Application Form

and initially screened and interviewed by the proponent department for local

recruitments, and approved recruitment agency for overseas recruitment. If

the applicant proves to be qualified, an interview with the assigned team as

mentioned in the approve Authority matrix from Wasmi Holding Company

is arranged.

The Interview Assessment Form of selected candidates will be submitted to

the HR Manager by the interviewers immediately upon completion of

interview or upon return from interview trip for overseas candidates.

1.7: Employment Offer & Employment Contract

General Manager and Finance Manager are responsible depending on job

level for approving the compensation provision, i.e. base salary, allowances,

etc., of the offer for all positions prior to the offer being extended to the

Page 16: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

prospective employee. The employment offer will be issued only by the HR

Department as requested by Department Head.

The Employment Offer Form will be used for preparing the Official

Employment Contract.

Once the job offer is signed the candidate will be provided with appropriate

Employment Contract:

a. The employment contract being used in the organization having

dual language (Arabic and English) for legal purposes.

b. For all positions, the employment contract period should be

initially minimum 2 years. Employee’s Grade & Salary shall be

fixed according to their qualification and experiences in

compliances with the Approved Job Description & Qualification

Requirements as specified in this manual.

Joining Formalities – Orientation & Induction of New Employee

Following documents shall be verified

1. Appointment or Employment Letter

2. Work Experience Letter

3. Resume / CV

4. Copy of Academic and other certifications

5. Copy of National ID (Saudi’s), or relevant pages of Passport (Non-Saudi’s)

6. Medical Report

7. All other documents as mentioned in letter of intent

The employee is summoned for an orientation program conducted by HR

personnel. Foreign Nationals will submit their passports to Government

Affairs Department to process their Residential Permit if their contract states

them as residents in the Kingdom in accordance to Passport Office and Laws

Relations.

Page 17: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

INDUCTION

OBJECTIVE: To familiarize the new hire/entrant with Organization’s Operational

processes, systems, practices, safety and other crucial aspects.

1.8: Employee Induction Program

The Supervisor introduces new employee on the first day to all other staff. HSE

induction training is given to the new employee by the safety advisor. The Camp

Boss familiarizes the new employee with the camp, the new employee room, office

and the camp facilities. Finally, the new employee undergoes an orientation

program during which he spends time in different operation areas to obtain an

overall understanding of the Company’s operations.

1.9: Effective Date of Employment and Joining Report

The effective date of employment of a Saudi, or a locally hired employee is the date

on which he reports to work.

The effective date of employment for a non-Saudi employee recruited from overseas

is the date on which he arrives in the Kingdom and makes himself available to start

work, as per labor law.

As soon as the Medical Test and Orientation session are completed, the employee is

transferred to the assigned location.

PROBATION PERIOD AND EMPLOYEE CONFIRMATION

POLICY

Probation is a period of review and appraisal to confirm the effectiveness of the new

employee on his assigned position/task. Employee will only be considered as

permanent employee when the new employee satisfactorily completed their three

Page 18: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

(3) months probationary period. In the event that the company found the

employee’s performance unsatisfactory during the probationary period, HR

Manager will serve the employee termination paper within the 90 day period.

1.10: Transfer of Sponsor

Non-Saudi candidates selected locally for employment are required to transfer

sponsorship prior to start of employment with Wasmi Holding Company.

Wasmi Holding Company will borne all expenses related to transfer of

sponsorship as well as change of profession fee levied by the Passport Office (if

employee current job tile does not match Wasmi Holding Company job title) as per

Ministry’s requirement.

1.11: Employee’s File

The employee file is divided into many sections, which include documents such as:

(refer to HR file check list):

Employee Summary Data

Basic Information Form (Expats)

Appointment & Contracts

Nationality / Immigration Documents

Education

Course Certificate

Work Experience

Recruitment & Joining

Promotions/Increments and Transfers

Performance Evaluation

Grievances and Appeals

Disciplinary Action

Termination Documents

Clearance Letter

1.12: Limitations to the Policy

Page 19: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

Former employees who left the company in good standing may be considered for reemployment, but those who resign without notice or who were dismissed for cause will not be reemployed.

A former employee, if reemployed, will be considered a new employee from the date of reemployment.

Human Resources Development Program

Detailed employee’s Training and Improvement procedure established separately.

Academic / Technical Training

It is the responsibility of Wasmi Holding Company to harness the knowledge base of its workforce. This is done through training and skills uplifting seminars to satisfy the company’s current and emerging needs, either through its own facilities of those of a private training provider. These programs shall be consisted of courses in English and the craft/operator courses such as Metals, Mechanical, Electrical and Instrument skills training. As required, the company shall also provide special training in the area of QA/QC Inspection, certification in rigging, coating, RTR, scaffolding, driver’s and operator’s training, etc. These programs are necessary to help the employees to enhance their skills and reach their full job potential. These training programs should comply with ISO 9001:2008 clause 6.2.

Job Certification / Mentoring

Upon successful completion of the required clerical or technical training, either through Wasmi Holding Company or from outside training provider, the employees shall undergo rigorous mentoring and job certification programs for administrative and industrial jobs to ensure the assimilation of the learned skills and mastery of discipline being pursued. This shall be done by assigning senior employees to guide the trainee until he reaches a certain level of proficiency required for certification. Wasmi Holding Company will provide the necessary tolls, methods and standards to conduct the necessary job certification and engage its qualified staff to perform the required mentoring during this important and critical process. The job certification process hall entail; the following:

- Analysis of job performance requirements and establishment of job task standards for use in employee’s certification.

- Establishment of standard training requirements for specific job targets.\- Development of standard certification tests.- Recording and monitoring employee progress.

Expatriates employees shall be included in the job certification program upon getting the assurance of minimum 2 years service with the company after certification.

Page 20: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

CHAPTER 2

Work Schedules, Breaks, and Overtime

2.0 : Overtime ……………………………………………………………………

2.1 : System ……………………………………………………………………….

2.2 : Head Office Working Hours ……………………………………….

2.3 : Store Working Hours …………………………………………………

2.4 : Overtime and Compensatory Leave …………………………..

2.5 : Attendance…………………………………………………………………

Page 21: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

2.0: Overtime

2.1: The System

The company maintains the lowest levels of overtime that work requires. Overtime is

planned and paid for according to Saudi Labor Laws and Human Resources regulations

and procedures.

2.2: Head Office Working Hours

Standard working time is 10 hours; this excludes time reserved for prayer, rest

and meals.

Head Office standard working hours are 7:00 A.M. to 5:00 P.M. with 2 hours

lunch break

Head Office standard working week is Saturday to Thursday.

Friday is day of rest with full pay for all Head Office staff of Wasmi Holding

Company

During the month of Ramadan, working hours will be reduce to 6 hours day for

Muslim employees and still standard working time hours for non-Muslim.

2.3: Projects Working Hours

The standard working hours for Project Sites is 10 hours; 6 days a week.

During the month of Ramadan, standard working hours are reduced to 6 hours a

day for Muslim and still standard working hours for non-Muslim.

2.4: Overtime and Compensatory Leave

Subject to prior approval by concerned Department Head, Head Office employees

are eligible for overtime pay if they work more than the week’s regular hours

(48 hours a week)

Rate of overtime pay is one and a half times the regular basic pay per hour, and it is

paid together with the monthly payroll.

Page 22: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

2.5: Attendance

The HR Department monitors attendance of Head Office employees and Project

Managers will monitors attendance of project staff.

For any valid reason, if the employee expects to report late or work o leave early, or

need to absent himself for a short period during the day, he must obtain prior

permission from his department head.

At the end of the month, HR department summarizes attendance for the week in

terms of numbers of hours worked by each employee.

For head office, the HR Manager and for Project Sites, the Project Manager will send

attendance details to payroll for monthly salary calculation.

Page 23: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

CHAPTER 3

Salary, Bonuses, and Allowances

3.0 : The Principle ……………………………………………………………………

3.1 : Responsibilities ………………………………………………………………

3.1.1 : Head of Department Responsibilities ………………………………

3.1.2 : Human Resources Responsibilities ………………………………….

3.2 : Employment Salary…………………………. ……………………………….

3.3 : Basic Salary ………………………………………………………………………

3.4 : Salary Increment ………………………………………………………………

3.5 : Employee Promotion ………………………………………………………...

3.6 : Allowances ………………………………………………………………………..

3.6.1 : House Allowance ………………………………………………………………

3.6.2 : Merit …………………………………………………………………………………

3.7 : Transportation Allowance ………………………………………………..

3.7.1 : Transportation …………………………………………………………………

3.8 : Bonuses …………………………………………………………………………….

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OBJECTIVE

To integrate growth opportunities, motivate employees for better performance and ensure

continuity in management positions.

Main objective behind awarding Promotions and Increments is to recognize the employee’s

activities, production level and their contribution to company profit.

By rewarding employee performance adequately, the company achieves the following

secondary objectives:

Initiate healthy competition among employees

Boost employee’s morale

Ensure loyalty of employee

Promote teamwork

Reduce employee turnover and maintain high retention

3.0 : The Principle

Wasmi Holding Company ensures that payroll and compensation system is based on fair

and consistently applied rules that aim to be competitive, to attract and encourage

qualified employees.

3.1 : Responsibilities

3.1.1 : Head of Department Responsibilities

Head of Department responsibilities regarding payrolls are:

Review and evaluate their employees and offer appropriate recommendations

regarding their salary increase according to company regulations.

Specify and update information about job responsibilities, new positions, changes

made to current positions, or request changes in new or existent job descriptions for

job evaluation.

3.1.2 : Human Resources Responsibilities

Prepare and review all recommendations regarding payroll and compensation, and

ensure these are fair and appropriate.

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Offer advice and assistance to all administrative departments to inform, explain and

implement payroll regulations and procedures.

Observe salary levels, changes in everyday living costs, and other economical

changes in Saudi Arabia and other countries (from which Wasmi Holding

Company recruits)

Carry out or participate in studies regarding salaries and appropriate

recommendations to the General Manager and Chairman.

3.2 Employment Salary

A new employee who meets the minimum requirement of qualification and experience

(according to the job description) is hired with a salary determined by Wasmi Holding

Company, which would not be lesser than the minimum salary appropriate for the

position’s grade.

3.3 Basic Salary

This is the employee’s main salary, which does not include overtime, compensation, or any

other form of benefit.

3.4 Salary Increment

After completion of employee’s contract. If employee desired to extend/renew

his/her contract, the employee will be evaluated and according to the level of his

performance the company will revise his contract and other benefits.

.

Table 1

Final Result of Performance

Evaluation

Grade Code Increment Percentage (on

Basic Salary only)

Excellent

Approved percentage by

Chairman

Very Satisfactory

Satisfactory

Need Improvement

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3.5 Employee Promotion

Employees are promoted according to a credited promotion plan if they meet the following

conditions:

The employee’s performance evaluation should be Very Satisfactory or higher

(according to his last evaluation)

A vacant position should be available.

Authorized person should approve the promotion plan, as per authorization matrix.

Promotion is implemented according to the credited plan.

To make changes in the plan, approval from a higher Management Officer must be

obtained.

3.6 Allowances

3.6.1 House Allowance

3.6.2 Merit

Any employee not availing Wasmi Holding Company accommodation and not living in the

company provided accommodation is entitled for House Allowance.

Standard House Allowance

Any employee qualified for 3.6.2 above, merit a Monthly House Allowance at the rate of

25% of his basic salary.

House allowance is paid to the employee on a monthly basis all employees, Saudi

employees and to non-Saudi employees.

3.7 Transportation Allowance

3.7.1 Transportation

Wasmi Holding Company reserves the right to provide the transportation between

employee’s accommodation and the place of work by any of the following means:

Provide suitable transportation for the convenience of the employee between his

accommodation and place of work or

Pay the employee a monthly transportation allowance or

Provide the employee with a Company Car.

Transportation Allowance (where applicable) is paid along with basic salary as a part of

monthly payroll.

Continuance or suspension of Transportation Allowance

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No transportation allowance is allow/paid to employee who use company vehicle

from their residence to work location.

No Transportation Allowance is allowed/paid to employee who lives in the vicinity

of his work location.

3.8 Bonuses

Objectives

The main purpose of awarding Bonus is to recognize the employee’s activities production

level and their contribution to Wasmi Holding Company profit.

By rewarding employee activities production adequately, Wasmi Holding Company

achieves the following secondary objectives:

Initiate healthy competition among departments and projects

Boost employee’s morale

Acquire employee’s loyalty to the company

Promote teamwork

Reduce employee turnover and maintain high level of retention

Page 28: MODEL  HR POLICIES AND PROCEDURES FOR SAUDI COMPANIES

CHAPTER 4

BENEFITS

4.1 : The Principle ……………………………………………………………….

4.2 : Responsibilities ………………………………………………………….

4.2.1. : Human Resources Responsibilities …………………………….

4.2.2 : Direct Supervisor’s Responsibilities……………………… ……

4.3 : Medical Services ………………………………………………………….

4.3.1 : Merit……………………………………………………………………………

4.3.2 : Compensation for Medical Expenses……………………………

4.3.2.1: Employees who Merit Compensation………………………….

4.3.2.2: Medical Reimbursement in Case of Emergencies………..

4.3.3 : Cases not included in Health Insurance……………………….

4.3.4 : Emergency Medical Cases……………………………………………

4.4 : Employee’s Loyalty Award…………………………………………..

4.4.1 : Merit……………………………………………………………………………

4.4.2 : Certificates and Award……………………………………………….

4.4.3 : Gifts……………………………………………………………………………

4.5 : End-of-Service Benefit…………………………………………………

4.6 : Industrial Disability Revenues……………………………………

4.7 : Payment to the Wife of a Deceased Employee…………….

4.8 : Merit………………………………………………………………………….

4.9 : Loan Payment…………………………………………………………….

4.10 : Emergency Loan…………………………………………………………

4.11 : Social Insurance…………………………………………………………

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4.1 : The Principle

Wasmi Holding Company system states that employees will be given a group of revenues to fulfill

their basic needs, meet regular obligations, and to strengthen the company's competitive standards

in recruitment circles.

4.2 : Responsibilities

4.2.1 : Human Resources Responsibilities

a. Prepare and review the procedure for employees' revenues.

b. Implement revenue's regulations.

c. Generalize all revenue systems to the company's administrations and answering questions.

4.2.2 : Direct Supervisors' Responsibility

Direct Supervisors must understand revenue systems thoroughly so as to be able to explain to his

subordinates, whenever need arises.

4.3 : Medical Services

4.3.1 : Merit

The company provides medical care for each and every employee and their eligible dependents (as

stated in the contract).

4.3.2 : Compensations for Medical Expenses

4.3.2.1 : Employees who Merit Compensation

1

Employee has to submit an official proof that his daughter(s) 19 years or older are

not married.

(or) Give a declaration to HR Department or his Department Head, on location.

There is no age limit for mental or physical disabilities.

2

Health insurance will continue to cover sons who are 24 years or older, if they are

regular students.

There is no age limit for mental or physical disabilities.

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Employees and credited family members included in the health insurance list.

4.3.2.2 : Medical Reimbursement in case of Emergencies

1. Inside Saudi Arabia

Employees and their credited family members included in the health insurance list are

entitled to receive emergency medical care at all Insurance company's Clinics, Dispensaries

or Hospitals contracted with the company.

2. Outside Saudi Arabia

If an illness occurs while the employee is on assignment or training, he will be compensated

as per Insurance company policy states.

4.3.3 : Cases are not included in Health insurance

Please refer to the insurance company policy coverage.

4.3.4 : Emergency medical cases:

1. In case of medical treatments at Clinics and Hospitals not authorized by the Insurance

Company, invoices and Medical reports (original) have to be submitted to HR within 60

days of billing date. HR will, then, submit to Insurance Company to assist the medical case.

2. Bills will not be processed if case is not deemed as ‘Emergency’.

3. Employee will be compensated with what has been assisted by the medical agreement.

4.4 : Employee’s Loyalty Award

4.4.1 : Merit

The company gives its employees a certificate at the end of every 5 years of consecutive service.

4.4.2 : Certificates and Award

1. Employees who completed 5 years & above in the crew will be presented gift by the General

Manager or Chairman.

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2. Employee who completes 5 – 40 consecutive years of service is presented with Certificate

during a ceremony with the Chairman.

4.4.3 : Gifts

Gifts will be distributed according to the following schedule i.e. SR ______/Year:

Years of Service 5 10 20 30 40

Price of gift (SAR)

Note: Authority for signing Service Certificate is with the Chairman.

4.5 : End-of-Service Benefits

According to Saudi Labor Law every employee is entitled to an end-of-service award from his

company on retirement.

4.6 : Industrial Disability Revenues

Any employee with an industrial disability (partial or full) is compensated according to GOSI

regulations.

4.7 : Payment to the Wife of a Deceased Employee

4.8 : Merit

If an employee dies while in service, his heirs are entitled to settlement from the company.

A settlement estimated as three times of monthly basic salary, minimum 10,000 SR will be given. If

there is no wife, the amount will be paid to the deceased employee's next of kin.

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4.9 : Loan Payment

Permanent employees are allowed to avail the following advances/loans:

Employee Advance Entitlement Finance Dept.

Current Month’s Salary

Start deduction from next day loan was

taken.

Housing Allowance

Deduct Housing allowance from next

month’s salary with an amount equivalent

to monthly entitlement of Housing

Allowance.

An interest-free loan up to two month’s

basic

Deduct in up to 10 equal monthly

installments starting from the following

month

HR Manager will review and forward Loan request for final approval from the GM and Finance

Manager. Upon HM & FM approval a copy of employee’s approved request will be send to Accounts

Department to process; Payroll department, on monthly basis, will do the deductions.

An employee cannot apply for another loan/advance unless he has cleared the previous one and

cannot proceed on vacation unless another employee guarantees his loan. If the employee does not

come back from his vacation the guarantor is responsible for all dues.

A guarantor cannot proceed for vacation unless the employee returns from his vacation.

4.10 : Emergency Loan:

In case the employee is in desperate need exceeding his loan limit due to some emergency

case which requires some money:

The Chairman will establish a committee consisting of three members (HR, Finance and

Payroll)

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To study the case and if assessed as needed by the requested employee; send a recommendation to

GM & FM about the loan with attachment of Loan Form for approval.

4.11 : Social Insurance

According to the General Organization for Social Insurance (GOSI) rules, all permanent Company

employees are insured.

All obligations, rights and compensations of the employees are discussed and resolved according to

the GOSI rules issued under the Royal Decree No. M/22 dated 06/09/1389H and subsequent

decisions of the Council of Ministers and the Minister of Labor and Social Affairs.

The GOSI rules provide the following cover:

Full social insurance for Saudi employees,

Occupational hazards insurance for both the Saudi and Non-Saudi employee.

The total wages for the purpose of computation of contributions to the GOSI include basic salary

and housing allowance.

The Company provides the necessary information to the GOSI immediately following the

recruitment and the termination of an employee.

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CHAPTER 5

VACATIONS

5.1 : The System ………..……………………………………………………….

5.2 : Annual Vacation ………………………………………………………….

5.2.1. : Merit …………………………………………………………………………..

5.2.2 : Leave Entitlement ………………………………………………………

5.2.3 : Employee’s Leave Entitlement…………………………………….

5.2.4 : Annual Leave Procedures……………………………………………

5.2.4.1: Public Holidays during Vacations………………………

5.2.4.2: Illness during Vacations…………………………………….

5.2.4.3: Illness before going on Annual Vacation……………

5.3 : Extending Vacation Leave…………………………………………..

5.4 : Deferment of Leave Entitlement…………………………………

5.5 : Sick Leave…………………………………………………………………..

5.6 : Leave without Pay………………………………………………………

5.7 : Unauthorized Leave……………………………………………………

5.8 : Emergency Leave……………………………………………………….

5.9 : Holidays & Public Days Leave…………………………………….

5.10 : Haj Leave of Absence…………………………………………………

5.12 : Governmental Arrest of the Employee…………………………

5.13 : Leave/Ticket Encashment………………………………………….

5.14 : Returning from Leave and Joining Report………………….

5.15 : Passport and Residential Permit………………………………..

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5.1 : The System

LEAVE POLICY

Purpose

The objective of this policy is to explain the leave entitlement and procedure for

availing leave. Wasmi Holding Company allows certain leave benefits for employees.

The company's system states that employees shall be granted different kinds of leave such as

Annual Vacation, Paid Leave (holidays, examination off, sick leave… etc.), or Unpaid Leave. The

purpose of Leave or vacation is to allow the employee a recreational time to renew his energy and

meet his personal obligations.

5.2 : Annual Vacation

5.2.1 : Merit

a. All employees merit an annual vacation according to their contract.

5.2.2 : Leave Entitlement

a. Annual leave entitlements exclude intervening public holidays.

b. Annual leave is accrued for each completed month of service by dividing the total annual

leave entitlement for the year by 12.

c. Annual leave cannot be taken until completion of the probation period.

d. The department heads prepare a summary of the department annual leave plan to be

submitted and approved by the HR Manager.

5.2.3: Employee’s Leave Entitlement

a. Wasmi Holding Company employees are entitled to a prepaid annual leave of not less than

21 days, to be increased to a period of not less than 30 days if the employee spends five

consecutive years in the service.

b. Wasmi Holding Company employee shall enjoy his leave in the year it is due. He may not

forgo it or receive cash in lieu during his period of service.

c. Any Wasmi Holding Company employee may, with the management approval, postpone

his annual leave or days thereof to the following year.

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d. Wasmi Holding Company management may postpone, for a period of not more than ninety

days any worker’s leave after the end of the years it is due required by work condition. If

work conditions require extension of the postponement the worker’s consent must be

obtained in writing. Such postponement shall not, however, exceed the end of year

following the year the employee’s leave is due.

5.2.4: Annual Leave - Procedure

The approved original Leave Application Form must be sent to the HR Department for filing in the

personnel file 30 days prior to actual leave day.

Copy of the approved Leave Application Form must be sent to the Government Affairs Department

to process Exit & Re-entry visa and air tickets (as applicable).

5.2.4.1: Public Holidays during Vacations

Public Holidays includes Id Al-Fitr, Eid Al-Adha', and National Day. If these public holidays fall

between an employee’s annual vacations, then these (public holidays) are not counted as part of

annual leave.

5.2.4.2: Illness during Vacations

If an employee is sick during his annual vacation, the sick days will not be counted in the annual

leave. Sick Leave will be attached to the annual leave PROVIDED the following stipulations are met:

The sick leave must be issued by the company's clinic, a contracted hospital or dispensary,

or a governmental hospital or dispensary.

The employee must notify his department about his sickness and sick leave.

An accredited medical authority of Wasmi Holding Company must approve this sick leave.

5.2.4.3: Illness before Going on Annual Vacation

An employee has the right to postpone his approved annual vacation provided he is given a sick

leave before his annual leave begins.

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5.3 : Extending Vacation Leave

In case the employee wants to extend his leave, he is required to contact his respective Department

Head one week before of his scheduled return date, who in turn will advise HR department

manager about the employee’s request with details. If the company found the employee’s reason

for extending his vacation invalid, company will levied penalty amount to be deducted to the

employee’s future salaries with the company. Employees should confirm his acceptance for this

penalty before the company start the process of extending his re-entry visa.

5.4 : Sick Leave

The Company allows sick leave if an authorized medical practitioner of Wasmi Holding Company confirms the illness and issues a Medical Certificate stating the same condition.

The employee must also inform his Department Head on the first day of his absence due to illness. He is required to submit the medical certificate on reporting to work.

Any excess is treated as leave without pay. In regards to Sick Leave pay it will have to be treated in accordance to Labor Office Law Chapter 4, Article 117:

“A worker whose illness has been proven shall be eligible for a paid sick leave for the first thirty days, three quarters of the wage for the next sixty days and without pay for the following thirty days, during a single year, whether such leaves are continuous or intermittent.

A single year shall mean the year which begins from the date of the first sick leave.”

5.6 : Leave without Pay

Under extreme circumstances, the manager concerned may approve leave without pay for a specific

period.

Leave without pay is not included in the computation of basic salary, allowances, accrued leave and

period of service in the Company for the purpose of calculating the end of service award.

The company can grant an unpaid leave if the operating requirements permit and if the employee

presents acceptable reasons. (Please refer to Authority Matrix)

Following table should be used for unpaid leave over 30 days:

Leave days Resulting payables

Up to 30 days Employee will pay all 20% of GOSI (Saudi)

30 - 90 days Days will not be counted for End of Service Benefits.

Over 90 days Company will not provide medical services.

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5.7 : Unauthorized Leave

Sick leave without proper certification, unapproved extension in vacation and absence without

prior authorization is considered unauthorized leave.

In addition to the deduction of salary and all benefits for days of absence, an employee who takes

unauthorized leave is penalized as follows:

100% of daily gross pay for each day of absence.

5.8 : Emergency Leave

The employee is entitled to a leave with full pay in each of the following cases:

SR. Emergency Type Leave Days Documents

1 Marriage leave 3 days with Full PayTo produce Marriage

Certificate

2Wife, Ascendant or

Descendant’s death3 days with Full Pay To produce Death Certificate

3 Child Birth 1 day with Full Pay To produce Birth Certificate

For all Emergency Leaves, Employee will bear his ticket cost.

The Company requires the employee to produce certified documents in support of each of the

above cases. Emergency leave must be taken within 10 days of the event, failing which the

entitlement is negated.

5.9: Holidays & Public Days Leave

Employees are entitled to a full paid leave in the following cases:

a. Three-day leave for Eid Al-Fitr including the 29th of Ramadan.

b. Four-day leave for Eid Al-Adha'.

c. Saudi Arabia's National Day.

These leaves will be stated in the company's annual calendar.

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5.10: Hajj Leave of Absence

A 10-15 day leave of absence with pay is granted to Muslim employees who complete 2 years

employment with the company to perform pilgrimage. This leave is granted once during company

employment. Eid Al-Adha' leave will be considered part of the Hajj leave itself. Management has the

right to decide on the number of employees to get this leave during the same year depending on

work conditions and needs.

5.12: Governmental Arrest of the Employee

5.12.1: Governmental Arrest of the Employee for Reasons Related to the Company Itself

In the case of work related arrest Wasmi Holding Company pay this leave according to the Article

(97) of Saudi labour law which states:

“If a worker is detained or taken into custody by the competent authorities in case

related to work or occasioned by it, the employer shall continue to pay the worker

50% of the wage until the case is decided, provided that the period of detention or

custody shall not exceed one hundred eighty days. If said period exceeds that, the

employer shall not be required to pay any portion of the wage for the excess

period. If the worker is acquitted or the investigation is closed for lack of evidence

or invalidity thereof, the employer shall return to the worker the amount

previously deducted from his wage. However, if he is convicted, none of the

payments made shall be recovered unless the judgment provides otherwise.”

5.12.2: Governmental Arrest of the Employee for Reasons Not Related to the Company

If the employee is arrested for reasons not related to the company, then Wasmi Holding Company

has the authority to implement the following procedures:

- If the employee does not report to work without notifying the company:

a. A written warning will be sent to the employee after 5 days demanding that he reports to

work in the next 10 days. Failure to comply with this will result in dropping the employee

from payroll without a month notice.

b. If the employee does not report to work on the 11th day, his name will be dropped from the

payroll.

- If the company is notified of the arrest, the following might take place:

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a. The employee will be given a 30-day postponement starting from the first day of the arrest.

When he does report to work later, he must present official documents proving his acquittal

before he is reinstated in the payroll again. The days spent in prison will be considered part

of his vacation leave. Excess days will be recorded as leave without pay.

b. If the employee does not report to work after the first 30 days, the company reserves the

right to extend this period into another 60 days.

c. The company will terminate employment as is stated in labor law if the employee does not

report to work after the allocated 90 days and does not present acquittal papers.

5.14: Ticket Entitlement

An employee cannot request for his annual earned ticket or leave for the previous year to be

cashed.

5.15: Returning From Leave and Joining Report:

After an employee returns from his leave, he should report to HR Department. Based on the

information received, HR Department will fill Arrival Note Form, will retain original in

employee’s file and copy to payroll department for salary calculation purpose.

5.16: Passport & Residential permit

Upon the return of an employee from his vacation, he must submit his passport to Government

Affairs department and collect his Residential permit (Residence book) or an equivalent travel

letter in order to go his work location.

d. The employee will be fired after 90 days of absence or after his contract expires, whichever

occurs first.

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CHAPTER 6

EMPLOYEE PERFORMANCE UNIT

6.0 : Objective

6.1 : Probation Period

6.2 : Annual Performance Appraisal

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6.0 Objectives

Probation Period Evaluation:

Allow Wasmi Holding Company to evaluate the performance of the new employee,

Provide new employee a chance to understand Wasmi Holding Company, its culture,

working environment and make an informed decision about his long-term prospects with

the Company.

Annual Performance Appraisal:

Provide formal feedback to employees on their performance

Identify areas of improvement and assist employees in improving performance.

Monitor progress from the previous periods

Identify areas for training of employees

Identify employees who are ready for promotion.

6.1 Probation Period

All new employees are subject to a probation period of three months at the end of which,

employment is confirmed, if the employee's performance is satisfactory.

Direct Employee Supervisor/Department Head evaluates through Probationary Review Form.-

If performance is not found to be satisfactory, the employment is terminated unless the evaluation

indicates that performance may improve if the employee is given more time. In such a case the

probation period may be extended by a maximum of three months.

During the probation period, the employee is not entitled to any loan or advance.

Probationers are not allowed to take housing allowance in advance. Instead they are paid a monthly

allowance along with the payroll.

Probationers are not entitled to any leave or vacation. However, GM and Chairman have the

discretion to allow emergency leave to a probationer.

During the probation period, the Company or the employee may terminate the employment

contract without notice and without assigning any reason.

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If the Company terminates an employee’s services during the probation period, the employee is

entitled to his salary up to the last working day. A repatriation ticket is also provided to employees

recruited from foreign countries.

If the employee resigns during the probation period, he is entitled only to his salary up to his last

working day and should compensate the company with all the expenses bear by the company

during his recruitment and during his initial deployment in the Kingdom, i.e. visa expenses,

residence certificate, work permit, etc. etc.

6.2 Annual Performance Appraisal

Annual performance appraisal is applicable to Managers and professional staff and is carried out

during last quarter of the year.

To initiate the process, the appraiser fills an Appraisal Form for the employee giving his ratings as

well as his recommendations for training, promotion increment, etc. The appraiser provides his

comments on self-appraisal form and discusses it with the employee.

Following the reviewer’s signature, the form is sent to the HR Manager who initiates the necessary

action to implement the decisions made. The form is filed in the personnel file of the employee.

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CHAPTER 7

COMPENSATION OF EXPENSES

7.1 : The System7.2 : Responsibilities7.2.1 : Employee’s Responsibilities7.2.2 : Responsibilities of the Direct Supervisor7.2.3 : Responsibilities of the Human Resources Department7.2.4 : Responsibilities of Accounting Department7.3 : Employees Vacation Compensation for Travel Ticket7.3.1 : Travelling Ticket’s Merit for Expatriate Employees7.3.2 : Cases when Travel Ticket is not granted7.3.3 : Credited Family Members7.4 : Renewal Charges7.5 : Business Travel Expenses7.5.1 : Air Travel7.5.2 : Compensation of Expenses7.6 : Travel Expenses7.6.1 : General7.6.2 : Travel Department7.6.3 : Air Travel7.6.4 : Hotels7.6.5 : Train7.6.6 : Car Rentals7.6.7 : Meeting and Events7.6.8 : Taxi and Public Transportation7.7 : Compensation for Mobile Phone7.8 : Compensation for Expenses of SAG License7.9 : Compensation for Air Ticket 7.10 : Course Expenses

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7.1: The System

The company has an obligation to compensate employees for their expenses while doing a job for

the company.

7.2: Responsibilities

7.2.1: Employee's Responsibilities

An employee has to keep records and documents as proof of his expenses while performing a job

for the company. He should submit a reimbursement request via his direct Supervisor with regard

to specific timings, deadlines and accurate activities.

7.2.2: Responsibilities of the Direct Supervisor

Direct Supervisor should review the expense reports and reimbursement requests submitted by his

employee and ensure accuracy and compliance with Wasmi Holding Company procedures before

forwarding to onward review and approval.

7.2.3: Responsibilities of the Human Resources Department

Human Resources will prepare and explain the company's procedures regarding reimbursements,

ensuring that they are in accordance with the credited system, reviewing them, and suggesting

necessary modifications.

7.2.4: Responsibilities of Accounting Department

Accounting Department handles reimbursement procedures according to the company's system

and in a timely manner.

7.3: Employees Vacations Compensation for traveling tickets

All expatriate employees are entitled to economy vacation ticket after each completed period

mentioned in contract. Vacation tickets for the family are provided on the same basis as applicable

to the employee.

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For employee requests, to claim the monetary value of tickets entitled, he will follow Authority

Matrix.

7.3.1: Traveling tickets' merit for expatriate employees

Expatriate employees and their dependent family members (wife and 2 children under 18, as per

Gregorian calendar) are given traveling tickets according to their contracts which states a merit

every Gregorian year in case of traveling, and end of service. The tickets will be for economy class.

The expatriate employee and his family will be given the tickets' monetary value if they spend their

vacation inside the Kingdom according to the following:

a. Hiring: Wasmi Holding Company gives the expatriate employee and his eligible family

economy class air ticket and transportation (only one-way ticket) when he is hired. And for

residence visa case the employee should be granted with a round trip ticket as per the

regulations of Embassy and immigrations.

b. Annual Leave: RHM gives the expatriate employee and his eligible family returns economy

class air ticket from Airport closest to work location. If employee wants to travel from

outside the country (for example Bahrain) employee will have to bear the cost difference

and transportation.

c. End of Service: Wasmi Holding Company gives the expatriate employee and his eligible

family economy class (one-way air ticket) at the end of his service to travel from Saudi

Arabia to his country. This will not be given if the employee and his family decide to remain

in the Kingdom for any reason.

d. In case employee does not want to travel or wish to arrange his trip to other destination

than stated in his contract, company shall provide him the entitled ticket cost as per

quotation from its travel agents.

7.3.2: Cases when traveling tickets are not granted

1. When the expatriate employee was hired via transferring his sponsorship inside Saudi

Arabia.

2. When the expatriate employee signs a renewal of his contract with the company while

already having tickets from his previous contract.

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7.3.3: Credited family members

Credited family members are those who are brought with an active visa by the company (this does

not include those who are brought in exception to this).

7.4: Renewal Charges for expatriate employees passport, working licenses, Residential permits

(Iqama) and transfer of sponsorship

Table 7.1:

Expense For EmployeeFor Credited Family

Members

1 Issuing Residential permit (renewal) Company Company

2 Issuing working license (renewal) Company N/A

3

Exit-Reentry Visa (Once per year when

given a traveling ticket for annual

leave)

Company Company

4 Issuing new passport (renewal) Employee Employee

5 Transferring sponsorship to RHM Company N/A

6 *Multiple Exit/ Re-entry visa Company Company

*Applicable for employees whose work requires the need of the multiple exit/ reentry Visa.

7.5 Business Travel Expenses

7.5.1 Air Travel

Employees travelling on Company business are eligible for certain travel classes depending on

their class and length of the trip. Criteria for determining travel class are shown below:

Chairman First Class

General Manager Business Class

Department Heads Business Class

All other employees Economy Class

* Business Class special approval must be granted by the Chairman in case of urgency and lack of availability of seats.

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7.5.2 Compensation of Expenses

Wasmi Holding Company will reimburse the actual expenses for out of country location trips

(up to amount fixed, shown below) for food, accommodation, and transportation occurred during

Official Business Trip duly approved by the Management. In exceptional cases, the Chairman may

approve expenses exceeding the ceiling. These expenses are paid per day.

The employee will submit to the Company all receipts and invoices for reimbursement.

ClassificationPer Day

Outside KSA Within KSA

CHAIRMAN & GM

DEPARTMENT HEAD

SUPERVISOR

7.6 : Travel Expenses

INTRODUCTION

This Wasmi Holding Company TRAVEL POLICY applies to all employees of Wasmi

Holding Company and is intended to provide guidelines and establish procedures when

incurring business travel expenditure on the company’s behalf.

Prior making any travel arrangements, you should first consider if a conference call can

satisfy the objectives of your meeting, as these facilities present an opportunity for

employees to control costs, improve productivity and preserve their health and quality of

life.

7.6.1: General

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In order to ensure the effective management of the travel budget and maximize the benefit

of all air, hotel, car and train discount programs, Wasmi Holding Company has a specific

Travel Department. This Department will help you to organize your travel according to

travel policies.

The Travel Department is instructed to propose to you only Wasmi Holding Company’s

preferred partners.

You are encouraged to book as early as possible to take advantage of the best deals. Trips

for internal meetings are to be arranged at least 15 days in advance.

7.6.2: Travel Department

a. The travel department, must be used for all airline, car rental, hotel bookings (for

both economic and safety reasons).

b. Usage of the self booking could be done only if the travel Department is unable to do

it and after approval by the HR Manager.

7.6.3: Air Travel

a. Restricted air tickets are mandatory (In exceptional professional circumstances,

employees might ask for full flexible tickets) – use of flexible tickets will be tracked

and reported to GM and Finance Manager. Travel agencies will be asked to book

restricted tickets by default. These tickets are 20% to 80% cheaper than "fully

flexible" tickets.

b. The travel agent is responsible for proposing the best available prices => you will

not be able to specify an airline.

c. If by using a suitable alternative airport an overall end-to-end travel saving may be

made, or if there is more than one non-stop flight between the requested airports

within 60 minutes of your desired departure time, the cheapest option will be

offered. Where possible you should make every effort to accept this cost effective

option and adapt your meeting/work schedule accordingly.

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d. To achieve maximum savings you are expected to book tickets as early as possible,

ideally 2 weeks or more in advance. The company recognizes that when booking

restricted tickets (with exchange or/and refund restrictions) that a small

percentage of these may need to be cancelled or change fees applied when

circumstances change. In most cases, however, this will still be economical

compared to late bookings. Price difference can be up to 80% cheaper than public

fares.

e. E-ticket is mandatory when available.

f. Travelers are requested to use the same airline both ways

7.6.4: Hotels

a. The travel department must be used for all hotel bookings

b. For long stays, you are expected to look at corporate apartments instead of hotels.

c. If you wish to cancel a hotel reservation you MUST email the travel department.

Otherwise you will not be able to claim any penalty charges incurred.

7.6.5: Train

a. Day: 1st class travel, must be restricted to long-distance travel (more than 4 hours).

b. Night: 1st class sleeping car.

7.6.6: Car Rentals

a. _____________________

b. _____________________

7.6.7 Meeting and Events

The organization of meetings and events should go through the travel department.

7.6.8: Taxi and Public Transportation

In many cities, it is easier and cheaper to take the public transport rather than taxis.

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7.7: Compensations for mobile phone bills

1. Mobile Phone is issued for official / business use to raise the work efficiency by saving up

time and effort. Therefore, personal calls will be paid by the employee.

2. Department Head is the requisitioning authority, HR is the recommending authority and

the GM and FM is the approving authority.

3. Wasmi Holding Company will provide Mobile phone expenses as mentioned:

a. Staff that requires use of mobile phone during working hours will have a limit of

SAR ______.

b. Staff that requires use of mobile phone during and outside of working hours will

have a limit of SAR ______.

c. The exceptions to the limits above are the Department Managers & employees

whose Limits are determined according to their work needs, and the approval of the

GM and FM.

4. International Roaming service will not be provided as part of the coverage except under

approval of Chairman.

**Direct Department Head of employee decides, depending on employee’s need for a Mobile Phone.

7.8: Compensation for expenses of driving licenses.

When the employee's work demands a use of company car, company will pay for expenses that are

related to employee’s needs to the company driving licenses.

7.9: Compensation for air tickets not availed

In case the employee did not departed for his annual leave to his origin destination (mentioned in

contract), the company will not pay the cost of his un-availed ticket.

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7.10 Course Expenses

Any Training course required for employee will have to be approved as per shown in the matrix.

The Training plan and course contents have to be submitted to HR Department with the Approval

form to arrange the following:

Embassy Visa (if necessary)

Booking & issuing of Travel Tickets

Request Finance for Cash Advance

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CHAPTER 8

WORK RELATIONS

8.1 : The Principle

8.2 : The Employee’s Responsibilities

8.3 : Grievances

8.3.1 : The Principle

8.3.2 : Informal Appeal Procedure

8.3.3 : Formal Appeal Procedure

8.4 : Disciplinary Action

8.4.1 : Authority for Enforcing Disciplinary Action

8.5 : Conduct

8.5.1 : Conduct within the Company

8.5.2 : Conduct outside the Company

8.6 : Safety

8.7 : Industrial Injuries and Occupational Diseases

8.8 : Medical Care

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Grievance System

The objective of this chapter is to:

Allow employees a fair chance to be heard

Allow management to redress grievance and improve employee morale

Define in unambiguous term, the norms for acceptable behavior and conduct by the

employees.

Remove subjectivity from decisions and opinions formed by all concerned, regarding

conduct of employees.

Ensure consistency in Formal Disciplinary procedure in handling disciplinary matters in

Wasmi Holding Company.

Ensure impartiality and fairness in administering discipline

8.1: The Principle

The Company's Policies are based on creating an environment suitable for developing a smooth and

effective relationship between Wasmi Holding Company and its employees. To achieve this goal,

the company encourages communication between itself and its employees to strengthen

understanding of goals, regulations, and procedures. In order to help in executing its systems, the

company has established a course of action to deal with transgressions by guidance and looking

into grievances.

8.2: The Employee's Responsibilities

a. Avoid anything that could jeopardize his job whether on location or not.

b. Be polite to all his colleagues.

c. Restrict working hours to performing company tasks delegated to him by his superiors with

honesty.

d. Adhering to work's prevention measures and executing safety guidelines in order to avoid

injuries.

e. Maintaining the company's assets and equipments entrusted to him and use them only for

work.

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f. Every employee is responsible for his own actions and every supervisor is responsible for

ensuring good behavior and performance within his authority.

g. Adhering to fixed working hours without absence unless there's a legitimate reason or a

superior's permission.

The employee is not allowed to:

a. Misuse his authority.

b. Use his influence to interfere in others work without a valid reason.

c. Directly or indirectly accept gifts, premiums, or bribes.

d. Release confidential information learnt on account of his position, after end of employee’s

service.

e. Work for another establishment without company's approval.

f. Superiors should not use their subordinates for any personal favors.

g. Keep work documents or copies outside work location.

h. Make statements or give information to the Press or Media. Employee is also not allowed to

lecture or write articles concerning Wasmi Holding Company without latter’s prior

approval.

i. Start any commercial activity without the company's approval.

8.3: Grievances

8.3.1: The Principle

The employee has the right to complain about any behavior or procedure against him that he

perceives as unjust. He can address his grievance to labor office or concerned international

sections.

8.3.2: Informal appeal Procedure

An employee may complain and discuss his written grievance addressed to his Department Head

within two weeks of the incident or decision, which gave rise to the grievance.

The employee may discuss his grievance with the direct Supervisor concerned. If informal

discussions with Supervisor concerned failed, or if the employee considers he has a justifiable

reason to go he can go to his respective Department Head directly.

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If the complaint is not addressed by the Department Head, concerned may initiate the formal

appeal procedure.

8.3.3 Formal Appeal Procedure

The employee wishing to make a formal appeal files a Grievance Review Request and submits this

to the HR Manager within one month of the incident or decision against him, which gave rise to the

grievance.

On the receipt of the request, HR Manager conducts an inquiry and communicates the decision in

writing within one week.

If not satisfied with the decision, the employee can further bring his case to the GM or Chairman of

the Company for a final review. He does this by submitting a fresh Grievance Review Request within

one week of the response by the HR Manger. Copies of earlier request and response are attached to

this form.

GM obtain information about the case, meet with the concerned employee, discuss the grievance

and give decision in writing generally within two weeks of receiving the form for the final appeal.

GM’s decision is final and the company entertains no further appeals.

Copies of all communications are filed in the employee’s personnel file.

8.4 :Disciplinary Action

The Company ensures that a schedule of violations and penalties duly approved by the Ministry of

Labor is displayed at the head office and employees’ notice boards in compliance with the

provisions in Saudi Labor Law on yearly basis.

The GM has the authority to make any change in the schedule of violations and penalties.

Penalties are not imposed on any employee for offences/violations other than those listed in the

defense.

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The Company is required to inform the employee concerned of the offense committed within 15

days and impose the penalty (if recommended) within 30 days of the offense being proven.

The types of penalties that may be imposed depending on the seriousness of the offenses are:

Written warning

Fines not exceeding ______ days basic salary

Suspension from work without pay for a period not exceeding five days

Dismissal from service

The employee may not be subjected to more than one penalty for the same offense .

Please refer to Table of Type of Violations:

Sr. Violations First ViolationSecond

Violation

Third

Violation

1 Violation on Wasmi Holding Company ’s Code of Ethic

2 Health and Safety Violation

3Insubordination

4Absents and Tardiness

5Misuse of Authority

6Violation on Kingdom Laws and Regulations

7Violation on Company’s Disclosure Policy

8Misuse of Company’s Properties

9Violation on Wasmi Holding Company ’s Policies and

Procedures

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The GM makes final decision on dismissal from services jointly. For all other penalties, the HR

Manager has the final authority to take decision independently.

The immediate supervisor reports to the Department Head/Project Manager concerned reports

violation of any policy or rule verbally.

The Department Head or Project Manager determines whether any disciplinary action is necessary.

If he agrees, he also determines the appropriate course of action as to whether an oral reprimand is

enough at the first instance.

If the Department Head or Project Manager considers further action necessary, he refers the matter

to the HR Manager by completing and signing the Disciplinary Action Form.

The HR Manager discusses the matter with the employee concerned in view of the details given by

the Department Head or Project Manager. He also refers to the previous record of the employee

concerning disciplinary action. In case the HR Manager agrees to the need of a disciplinary action,

he decides whether to give a verbal warning or impose a penalty.

The GM discuss the matter with the employee after taking input from the Department Head or

Project Manager, the HR Manager and all other parties concerned.

In case the GM agrees on dismissal from service, procedures described in next chapter are followed.

The HR Manager implements the decision on disciplinary action and relevant papers/evidences are

filed in the employee file for record.

If the employee concerned does not agree with the disciplinary action or the penalties as a result, he

may initiate an appeal process.

8.4.1: Authority for Enforcing Disciplinary Action

Please refer to Authority Matrix Table

If the employee reports to a higher management, the higher management will be the one to enforce

the penalty.

8.5: Conduct

8.5.1: Conduct within the Company

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The Company treats all its employees equally and without any favor or prejudice. The employees,

on their part, are also expected to treat other employees without any favor or prejudice on account

of color, nationality or beliefs.

The employees are required to interact with other employees, including their superiors and

subordinates, within the framework of policies and guidelines of the Company with confidence and

dignity. At no time may an employee exceed the authority limits, without the prior approval of the

appropriate authority.

Employees are expected to show proper deference to superiors and consideration to colleagues and

subordinates. They are also expected to resolve misunderstandings, differences of opinion, etc.

informally amongst themselves or with the assistance of a superior, before initiating formal action.

Employees must adhere to the Saudi Arabian Laws and must not at any time intend to violate the

country laws while they are at the Company premises.

8.5.2: Conduct Outside the Company

The manner in which employees interact with outsiders largely reflects the Company’s culture and

values. Hence the employees are required to realize the importance of the role of a Company

representative.

While interacting with clients and other outside agencies, employees must behave in a courteous

and dignified manner. They should not say anything or act in a way that offends the outsider’s

feelings or cause damage to the Company’s reputation.

No employee is allowed to make any representations on behalf of the Company unless he is

explicitly authorized by the GM, Project Managers, Department Heads, to do so.

Employees are expected to adhere to Saudi Arabian Laws and must not at any time intend to violate

the country laws while they are outside of the Company premises.

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8.6: Safety

8.6.1: All employees must abide by safety instructions and precautions of Wasmi Holding

Company to prevent accidents and dangerous situations.

8.6.2: The company implements a program for preventing accidents, reviews it, and then follows up

in order to avoid any shortcomings by:

a. Providing a safe working environment.

b. Providing personal prevention measures and creating/spreading safety awareness among

employees inside and outside the kingdom.

c. Maintaining working environment and minimizing health hazards to the minimum level

possible.

d. Regularly inspecting work locations to ensure the safety of equipment and implementation

of safety measures.

e. Suggesting necessary modifications to operating methods and safety equipments.

f. Preparing reports for company management regarding safety.

g. Strengthening preventive awareness in employees.

h. Examining accidents, recording and preparing reports about them that would include

methods and preventive action / precautions to be able to prevent recurrence. This report

is sent to the company's management.

i. Keep a record of accidents and prepare appropriate statistics.

8.7: Industrial Injuries and Occupational Diseases

8.7.1: If an employee suffers an industrial injury or an occupational disease, he has to immediately

inform his supervisor who in turn will notify the concerned department, which informs

Occupational Hazards branch of GOSI.

8.7.2: Company’s clinic must inform management about any indicators of occupational diseases or

epidemics among employees.

8.7.3: The regulations regarding industrial injuries and occupational hazards are taken from GOSI

system.

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8.8: Medical Care:

The company provides its employees and their families with medical care in accordance with the

company's credited health service system.

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CHAPTER 9END-OF-SERVICE

9.1 : The Principles

9.2 : Responsibilities

9.3 : Types of End-of-Service

9.3.1 : End-of-Service Due to Resignation

9.3.2 : End-of-Service by Early Retirement

9.3.2.1: Reaching Early Retirement Age

9.3.3 : End-of-Service by Employee’s Death

9.3.4 : End-of-Service for Medical Reasons

9.3.5 : End-of-Service According to Labor Laws

9.3.5.1 : End-of-Service during Probation Period

9.3.5.2 : End-of-Service Due to Transactions

9.3.6 : End-of-Service Due to Permanent Full Disability

9.3.7 : End-of-Service Due to Governmental Issues

9.3.8 : End-of-Service Due to an Agreement

9.4 : Prior Notice of End-of-Service

9.4.1 : Resignation

9.4.2 : Termination

9.4.3 : Deduction of One-Month Notice

9.5 : Severance Award

9.6 : End-of-Service Certificate

9.7 : End-of-Service Ticket

9.8 : Re-Instating an Employee whose service with Company has ended.

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Objectives : The chapter covers the policies and procedures for termination and renewal of contracts, and also describes the method of computing end-of-service award for different types of termination.

Termination of employment may be due to the following:

Expiry of contract (not renewed by Company or as notified by employee)

Resignation during contract period

Death or serious disability of employee,

Dismissal

9.1: The Principles

Wasmi Holding Company ensures that its employees will continue working for it by providing a

work atmosphere which is consistent with, effective and economical occupational requirements.

However, the company realizes that a number of its employees will leave for different reasons.

When the employee’s service with the company ends (especially when company ended the service),

the company will study each case of end-of-service to ensure that regulations and procedures will

be implemented fairly and that awards will be given accordingly to labor laws.

9.2: Responsibilities

9.2.1: The Employee’s Responsibilities

The employee has to adhere to the company’s internal regulations and labor laws in order to

stabilize his position and to continue working for the company.

9.2.2: Responsibilities of Human Resources Dept.

a. Providing guidelines to departments regarding implementing severance procedures.

b. Reviewing each case to discover severance justifications and whether they are in

accordance with credited regulations or not.

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9.2.3: Approval Authority

Authority to approve the employee’s end-of-service has to be in accordance with the company’s

credited approval authority schedule.

9.3: Types of End-of-Service

9.3.1: End-of-Service Due to Resignation

a. The Employee’s Right to Resign

An employee with an unlimited time contract has the right to end his service to the company by

resignation. The process for this case is for the employee to present an advance Thirty (30) days

notice to his Department Head before the end of his service with the company.

b. Specifying Resignation Reasons

Before the employee’s resignation is accepted, his immediate Department Head must investigate

the reasons for it. He should also coordinate with other concerned departments and Human

Resources to find out the reasons behind the employee’s resignation.

c. Effective Date for End-of-Service

The end-of-service will be effective the day after the employee’s last day at work.

9.3.2: End-of-Service via Early Retirement

9.3.2.1: Reaching Early Retirement Age

The Standard age of retirement is when the employee is 60 years old according to the Article 74

clause 4 of Saudi labor Law that states.

“The worker attains the age of retirement, which is sixty years for males and fifty five years for

females, unless the two parties agree upon continuing work after this age. The retirement age

may be reduced in cases of early retirement as provided for in the work organization regulation.

If it is a fixed-term work contract which extends beyond the retirement age, it shall terminate at

the end of its term.”

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9.3.3: End-of-Service by the Employee's Death

The employee's service with the company will end if he dies. The date for end-of-service would be

the death date as stated in labour law, and the employee is paid till the end of month in which he

died.

9.3.4: End-of-Service for Medical Reasons

The company can end an employee's service if he stops reporting to work due to health issues for

more than the allowed time. This stipulation will be enforced if the employee has exhausted all his

sick and annual leaves' days.

9.3.5: End-of-Service According to Labor Law

9.3.5.1: End-of-Service during probation Period

The company can end the employee's service during probation period without giving him advanced

notice and without a severance award. This will be enforced if it is proven that the employee is

unable to perform tasks delegated to him in a satisfactory manner, or if the employee cannot meet

his position's requirements.

9.3.5.2: End-of-Service Due to Transactions

The company can end the employee's service without giving him advanced notice and without a

severance award if the employee commits a transaction listed in article 80 of Saudi Labour Law.

9.3.6: End-of-Service Due to Permanent Full Disability

The company can terminate the employee's service in case of a permanent full disability, which has

to be proven with a medical report issued from a credited medical facility. The authorized

management will determine the end-of-service date.

9.3.7: End-of-Service Due to Governmental Issues

An employee's service can be terminated if a governmental authority cancels his working license,

residential permit (Residential permit), or if one or both of them were not renewed. However, the

employee is entitled to a severance award.

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9.3.8: End-of-Service Due to an Agreement between the Company and the Employee

An end-of-service can be processed if the company and the employee agree to it. The employee will

be entitled to a severance award.

9.3.9: The employee's service ends with the end of the contract signed between him and the

company. The employee is entitled to a severance award in this case. In addition, the end-of-service

effective date will be the day after the employee's last day at work as stated in his contract.

9.4: Prior Notice of End-of-Service

9.4.1: Resignation

If an employee wishes to resign, he has to submit a written notice 30 days before his resignation

becomes effective.

9.4.2: Ending the Employee's Service by Company Command

If the company decides to end an employee's service, a written notice will be issued and addressed

to the employee stating that he has a 30-day warning period. The following cases are the exceptions

to these rules:

a. Ending the employee's service when he is still on probation period.

b. End-of-Service due to an issue stated in Labor Law.

c. If the employee dies.

9.4.3: Deduction of One-Month Notice

If an employee stops reporting to work during the one-month notice without prior approval, it will

be deducted out of his end-of-service earnings. However 1-month notice can be paid if the

employee presents a justified reason.

9.5: Severance Award

9.5.1: An employee's severance award will be calculated according to Labor Law system.

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9.5.2: Settling Severance Award Earnings

The company settles all end-of-service earnings that include but are not limited to:

a. The employee's salary up to his last working day.

b. Severance award according to Labor Law.

c. Any monetary amount owed by the employee to the company will be deducted.

9.6: End-of-Service Certificate

Human Resources Dept. will issue a service certificate for each employee whose service with the

company has ended. This certificate would include the employment date, end-of-service date, job

title for his last position, and a manifestation of the employee's last salary. Employees who haven’t

completed 6 months service period, or below is not entitled for such certificate.

9.7: End-of-Service Ticket:

When an expatriate employee ends his service, the company will issue traveling tickets for him and

his credited family members.

9.8: Re-Instating an Employee who’s Service with the Company has Ended

9.8.1: An employee whose service has ended due to article 80 of Labor Law or for unapproved

absence can be re-hired if he meets the following stipulations:

1. His absence has not exceeded 180 days.

2. The company accepts the reason for absence.

3. His position has not been filled yet and work needs him to be re-instated.

4. Approval of GM has to be obtained.

5. Employee has submitted the filled-in Joining Form

9.8.2: Settlement for Period of Absence

After the employee has been reinstated, the absence period will be deducted from his annual leave.

If his leave balance is not enough, the rest of the absence period will be considered an unpaid leave.

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CHAPTER 10

Government Relations

10.1 : Issuing of Residence Permit for a new employee

10.2 : Requirements of issuance and renewal of work permit

10.3 : Renewing the residence permit for the employees and their

families

10.4 : Single Exit Re-entry Visa

10.5 : Multiple Exit Re-Entry Visa

10.6 : Final Exit Visa

10.7 : Visa Requirements for Families

10.8 : Requirements for obtaining Business Visit Visa

10.9 : Family Visit Visa

10.10: Extending Employees Visit Visa Request

10.11: Extending Family Members Visit Visa Request

10.12: Adding Family Members to Employee Resident Visa

10.13: Adding Recent Born Children to Employee Resident Permit

10.14: Renewal of Employee Passport

10.15: Obtaining a Work Visa from Embassies in the Kingdom

10.16: Transfer of Sponsorship

10.17: Information Transfer from old to new Passport requirements

10.18: Issuing or Renewing Saudi Driving License Requirements

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10.1: Issuing of Residence Permit (Iqama) for a new employee:

a. Requirement: Original Passport, 12 personal photographs size 4X6 (white

background), comprehensive medical report from approved centre in Saudi

Arabia, health insurance for employee as soon as he enters country, finger prints

on entering Airports or Passport office.

b. The department of the employee needs to coordinate with the Government Affairs

Department to obtain the functional I.D. number and with the HR department to

obtain the Health Insurance card.

10.2: Requirements for issuance and renewal of work permit:

a. Original passport.

b. The original residence’s permit of the employee.

c. The original license in case of renewal.

d. Filling up the form of the Labor office regarding the issuance or renewal of work

permit.

e. To the work permit, it is necessary to insert the new data in the USB of the Labor

office.

f. Extracting data of employees through withdrawal of USB from the Labor work to

issue a new work number.

g. Extracting data of employees through withdrawal of USB from the Labor work to

issue a new work number.

10.3: Renewing the residence permit for the employees and their families:

a. Requirements: original passport of the employee and his family, original residence

permit of the employee and his family’s residences, proof of blood group, personal

photographs of the employee and his family separately [ 6 photographs size 4X6 ],

b. Every employee who has children over the legal age (18) years is required

immediately to arrange for issuing a separate residence attaching the academic

certificate for the son/ daughter who wish to separate him/ her endorsed and

translated as to avoid paying the lawful penalty

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c. In case, there are students for the employees outside the Kingdom and wish to

obtain an exit and re-entry visa for more than 6 months, the employee and his

family should immediately renew their residence permit in the event of

insufficiency of period in the residence permits.

d. While renewing the Residence Permit of all members (including the head of the

family) should be inside the Kingdom.

10.4: Single Exit Re-entry Visa:

a. Requirement: original Passport, clear copy of employee Residential permit, 1

picture, pay traffic violation if any.

b. Department has to organize with Government relations to submit signed form

prior to 21 days of leave, and 30 days prior to leave during Official Holidays.

10.5: Multiple Exit Re-entry Visa:

a. Requirement: original Passport, and original employee Residential permit, 1

picture, pay traffic violation if exists.

b. Department has to organize with Government relations to submit signed form

prior to 7 days of leave, and 14 days prior to leave during Official Holidays.

c. This is applicable to all company employees in accordance to their work need for

it, and with CEO approval or who has the authority. Please refer to Authority

Matrix.

10.6: Final Exit Visa:

a. Requirement: original Passport, clear copy of employee Residential permit, 1

picture, pay traffic violation if exists.

b. HR Department has to submit a formal notification of ending the services of the

employee to the Government Relations Department.

c. Employee’s Department has to coordinate with Government relations prior to 15

days before his leave.

d. Final Settlement of employee has to be processed before issuing Final Exit visa.

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10.7: Visa Requirements for Families:

a. Fill in the form of Visa request and personal guarantee of the accuracy of the

educational certificates.

b. Original certificates translated into Arabic and certified by the Saudi Embassy in

the country of origin.

c. Marriage contract and original Birth for wife and children Certificates translated

into Arabic and certified by the Saudi Embassy in the country of origin.

d. Clear Copies of Family members Passports

e. Original Residential permit and clear copy

10.8: Requirements for obtaining a business visit visa (for work)

Information should be available in the demand letter to obtain a visa:

a. The name in four-fold according to the visitor’s passport, nationality and date of

birth

b. Job title (the visitor’s profession).

c. Name of Company or authority that the visitor is working with, outside the

Kingdom of Saudi Arabia.

d. The commercial activity of the authority, in which the visitor is working with,

outside the Kingdom of Saudi Arabia.

e. The period required for the visit visa.

f. Type of visa: multiple or single.

g. The Consulate authority, which should send the visa to them.

h. A clear copy of the visitor’s passport.

Important Points

a. The department request for visiting visa should take all approvals before

proceeding with the request.

b. The visa application form be filled up and authenticated from the Chamber of

Commerce and Industry and submitted to the Ministry of Foreign Affairs.

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10.9: Family Visit Visa request:

a. Fill in the form for Visit Visa request to include family information, and point of

origin.

b. Original Educational Certificates translated into Arabic and certified by Saudi

Embassy in country of origin.

c. Marriage contract and original Birth Certificates translated into Arabic and

certified by the Saudi Embassy in the country of origin.

d. Clear Copies of Passports visiting Family members

e. Original Residential permit and clear copy

10.10: Extending Employees Visit Visa request:

a. Requirements: original Passport, Recent pictures.

b. Employee has to check the validation date of the visit visa as soon as he receives it

from Saudi Embassy in country of origin.

c. Visa validation start from date of employee entering Saudi Arabia.

d. Employee’s Department has to coordinate with Government Affairs and send

original passport prior to expiration of visa by at least 7 days.

e. Just to be informed, in case visiting employee has delayed sending his passport for

extending his stay the penalty charged by Passport office is SAR 10,000 and

sending him to his country of origin, and possible sentenced Jail time.

f. Extension of visa is done to the highest period possible depending on the Passport

office system.

10.11: Extending Family members Visit Visa request:

a. Requirements: Fill in official extension form for visit visas, original Passport,

Recent pictures for person need to renew his visa, clear copy of Residential permit.

b. Employee has to check the validation date of the visit visa as soon as he receives it

from Saudi Embassy in country of origin.

c. Visa validation start from date of employee entering Saudi Arabia.

d. Employee’s Department has to coordinate with Government Affairs and send

original passport prior to expiration of visa by at least 7 days.

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g. Just to be informed, in case visiting employee has delayed sending his passport for

extending his stay the penalty charged by Passport office is SAR 10,000 and

sending him to his country of origin, and possible sentenced Jail time.

e. Extension of visa is done to the highest period possible depending on the Passport

office system.

10.12: Adding family members to employee Residential permit after they arrive to Saudi

Arabia with resident visa requirements:

a. Original family member’s passport.

b. Original Employee Residential permit

c. 6 recent pictures for each family members size 4 by 6 with white background.

d. Medical report for family members

10.13: Adding recent born children of employee to Residential permit after they arrive to

Saudi Arabia with resident visa requirements:

10.13.1 Born Inside Saudi Arabia:

a. Original Employee Residential Permit and Passport.

b. Original passport for new born.

c. Original Passport of mother.

d. 6 recent pictures of new born child [size 4 x 6 with white background].

e. Original and copy of Saudi Birth certificate.

f. Vaccination report.

g. Employee pays for all expenses to add newborn child to his Residential permit if

his contract status is ‘Single’.

10.13.2 Born Outside Saudi Arabia:

a. Original Employee Residential permit and Passport.

b. Original passport of new born.

c. 6 recent pictures of new born child [size 4 x 6 with white background].

d. Original birth certificate translated into Arabic and certified by the translation

office.

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e. Vaccination Report.

f. Employee pays all expenses to add new born child to his Residential permit if his

contract status is ‘Single’.

10.14: Renewal of Employee Passport:

a. Fill in form for renewal request from employee Embassy

b. Original passport.

c. Original and a copy of Residential permit of employee.

d. Recent personal pictures for employee as per the embassy request.

e. Employee has to comply with his Embassy directions to renew his passport.

f. Employee has to send passport for renewal at least 1 month prior to the date of

expiry of passport.

10.15: Obtaining a work visa from the Embassies in the Kingdom:

Requirements:

a. Fill up the visit application form from the Embassy and observe the requirements

of the request and the visit.

b. Original passport

c. Exit and Re-entry visa for non-citizens.

d. Original travelling ticket matching with its flights for the dates of the visit visa.

e. Invitation letter from the Company or the authority for the country to be visited

and contains information of the employee and date of visit and its expiration and

the purpose of the visit sent to the Embassy of the country in the Kingdom.

f. A letter from the Company in both Arabic and English Language attested by the

Chamber of Commerce and Industry, which shows the information of the employee

(position, salary, etc) and the purpose of the visit.

g. Copy of the Hotel reservation according to the dates of visit.

h. Medical insurance for the period of the visit

i. Personal interview shall be made in case requested.

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10.16: Transfer of sponsorship

Requirements:

a. The original letter of waiver from the previous sponsor attested by the Chamber of

Commerce for the Companies & Establishments and certified by the Police and the Chief or

Riyadh Passport department in case the sponsor is an individual.

b. Original passport renewed for a period of not less than 6 months in addition to the old

passports from the date of entering the Kingdom.

c. Original of Residence with renewed period not less than 6 months.

d. 6 new personal photographs.

e. Graduation certificate translated and certified from the Saudi Embassy and the Cultural

Attaché of the employee’s country.

f. Current and all old (expired) Passports, which were holding KSA visa Information.

Important points:

a. Expenses for transfer of sponsorship will be from the company.

b. The profession of the employee on his iqama should be transferable profession set forth by

Labor Office.

c. The employee who wishes to transfer the sponsorship on the Company should have spent at

least full 2 year with his previous sponsor.

d. Validity of waiver letter 3 months only from the date of issuing.

10.17: Information Transfer from Old to New Passport requirements:

a. New Original Passport

b.Original Old Passports

c. Recent employee pictures.

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10.18: Issuing or renewing Saudi Driving License requirements:

a. Original and clear copy of employee foreign driving license translated and

certified (new)

b. Original Saudi Driving License (renewal)

c. Fill in form of Traffic Office

d. Clear Copy of Resident Permit

e. Clear Copy of Passport

f. Letter of introduction of employee from Sponsor

g. Employee Follow up with Traffic Police for driving check up and eye sight test (Eye

vision is free from Traffic office but chargeable from any hospital).

10.19: Renewing of Vehicles Registration:

Requirements:

a. Request made to renew registration by Transport Department.

b. Original Vehicle Registration

c. Motor Vehicle Periodic Inspection

d. Traffic Department Filled form for renewal.

Important Points:

After requirements have been prepared and submitted, Government relations will

send the documents and original paper work to renew the registration and receive

new license plates (if necessary to be replaced).

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CHAPTER 11

Authority Matrix

11.0: Authority Matrix Table 80