Qiwa Explains Enterprise Possession Switch and Worker Rights in Saudi Arabia

➤ Companies licensed and never having a business registration: Switch is made via the related licensing authority.

As soon as the required procedures are accomplished, the up to date possession info can be accessible on the Qiwa platform.

What Occurs to Staff When Enterprise Possession Modifications?

Article 18 of Saudi Labour Regulation states that if a enterprise is transferred to a brand new proprietor, the employment contracts and the employees’ rights are transferred as properly.

Present employment contracts proceed in place when a enterprise modifications arms. The time of service of the staff can be continued, which suggests the size of service isn’t damaged by the switch of possession.

These protections additionally apply when a enterprise modifications its authorized kind via a merger, division, or different means. Really helpful: Saudi Police Arrest Expatriate for Violating Public Morals

Who Is Accountable for Staff’ Rights After an Possession Switch?

Below Article 18, the outdated and new proprietor shall be collectively responsible for the staff’ rights arising from the interval previous to the switch of possession.

■ Unpaid wages and different wage entitlements.

■ Finish-of-service advantages that will have been due on the date of the possession switch.

■ Different employment entitlements arising earlier than the switch.

This provision signifies that staff don’t lose their present rights by advantage of the enterprise having modified arms.

Can the Earlier Proprietor Switch Staff’ Rights to the New Proprietor?

For particular person institutions, the earlier proprietor and the brand new proprietor could comply with switch all present employees’ rights to the brand new proprietor.

Nonetheless, the worker should present written consent for this association. See Additionally: Saudi Well being Ministry Warns Pharmacists About Prescription Errors

If the worker doesn’t comply with the switch of their rights, they’ve the proper to request termination of their employment contract and obtain their dues from the earlier proprietor.

✧ The switch of possession of a enterprise is dealt with by the Ministry of Commerce or the licensing authority that’s related to the registration standing of the institution.

✧ Qiwa will replace the possession info as soon as the switch course of is accomplished.

✧ Present contracts of employment stay in power following a change of possession.

✧ Staff’ service intervals proceed with out interruption.

✧ The earlier and new homeowners share accountability for employment rights arising earlier than the switch.

✧ For particular person institutions, transferring all present employees’ rights to the brand new proprietor requires the worker’s written consent.

✧ Staff who don’t agree have the proper to ask for termination of contract and obtain their dues from the previous proprietor. Comply with Saudi Expatriates Information on X platform

Understanding these guidelines can assist Saudi enterprise homeowners, employers, and expatriate staff know their duties and rights when an institution modifications possession.