Flexible contract, its advantages and procedures

Published - 26 January, 2022

 The platform of the Ministry of Human Resources and Social Development for flexible work:

It is a program to empower Saudi men and women looking for additional work on an hourly basis. The Ministry of Human Resources and Social Development in the Kingdom of Saudi Arabia announced the beginning of the application of flexible work system contracts that allow companies and institutions to contract with individuals to work during specific hours .

Flexible work contract terms and conditions :

  • The flexible contract must be written and signed by all concerned parties .
  • The number of working hours must be written in the contract, provided that it is not less than half the usual number of hours per day .
  • It is possible to renew the contract according to what is agreed upon by both parties .
  • Requiring establishments and employers to provide all means of protection granted to similar workers .
  • Upon termination of the contract without reason, the reluctant party has the right to claim compensation for the remainder of the contract term .

Barriers to registering for the flexible work system:

  • Non-Saudi
  •  government/military employee
  •  younger than 15 years
  •  Over 65 years of age in the private sector
  •  optional subscriber
  •  Register at a facility during temporary closure
  •  facility owner
  •  Beneficiary of Sand
  •  Retired to legal age or early retired

 The rules and controls for regulating flexible work shall be determined according to the following:

  •  Flexible work means the work performed by a non-branched worker with one or more employers, and the wage is calculated on an hourly basis, provided that the working hours of the worker with a single employer are less than half of the working hours at the facility.
  •  Flexible work contracts are restricted to Saudis only.
  •  The percentage of workers employed by the employer under the (flexible work) system contracts is subject to the sectors and professions specified by the Ministry in the electronic portal.
  •  The employer is not obligated to compensate the worker with a contract (flexible work) for all types of paid leave, including (annual leave – occasional leave – sick leave).
  •  The employer is not obligated to compensate the worker with a contract (flexible work) with an end-of-service gratuity.
  • The worker under a (flexible work) contract is not subject to a probationary period .
  •  The contract is subject to the (flexible work) system of the pension branch of the social insurance system in accordance with the rules and regulations set by the General Organization for Social Insurance.
  •  The worker with a contract under the (flexible work) system is calculated as one third (1/3) of the worker in the Saudization percentages in the facilities incentive program to localize jobs (Nitaqat), provided that a total of (168) working hours is completed, taking into account the regulations and decisions issued for the Nitaqat program.
  • The wage of the worker in the (flexible work) system is calculated according to the hourly wage, and their wages are paid on a monthly basis or by agreement of the two parties .
  •  The employment of the worker under the (flexible work) system must not exceed (95) hours per month with one employer.
  •  The worker under the (flexible work) system has the right to approve or reject his request to work at any time without taking any action against him.
  •  The provisions of Article (83) of the Labor Law relating to the requirement that the employer not compete after the termination of the labor relationship shall apply to the worker under the (flexible work) system.
  •  The work contract must be electronic, with a fixed term, and the hourly wage, and it is permissible to specify and modify the times during which the worker attends to perform the work after an agreement between the two parties.
  •  To employ workers in the (flexible work) system, the contract is required to be documented in the electronic portal specified by the ministry. Anyone who employs a worker under the (flexible work) system without a documented work contract shall be punished with the penalties mentioned in Ministerial Resolution No. 178743 dated 9/27/1440 AH and the amendments thereto.
  •  Service providers are approved for flexible work based on the standards published in the online portal determined by the Ministry.

Advantages of the Flexible Hourly Work System for Employees:

  • Increase employees’ income and improve their career path .
  • Many employees, especially women, choose the hourly work system to avoid family obligations at the expense of work .
  • Hourly work allows employees to be happier and less stressful .
  • Hourly work is the best way to enable employees to make their mark on their business.

Advantages of flexible hourly work system for companies:

  • Attracting qualified employees.
  • Hiring hourly workers is a great way to increase productivity and improve results.
  • Improving the quality of services provided to customers without worrying about additional costs.
  • Increasing employee loyalty, which increases commitment at work and access to the best results.

The flexible contract is subject to the system of the General Organization for Social Insurance:

The organization of the flexible work system is subject to the work system and the General Organization for Social Insurance system, where the worker is registered with the flexible work pattern system in the pension branch of the institution automatically upon documenting the contract in the electronic portal, and workers subject to the system of the General Organization for Social Insurance can combine a permanent original work contract with one or more work contracts Flexible work mode system as an additional function .

168 hours in one facility counts towards insurance

The system specified that it is mandatory for the worker to complete 168 hours in a flexible and free work mode system in one facility to be calculated in the General Organization for Social Insurance, but if he works in more than one facility, a total of 168 hours must be collected, provided that the minimum for each facility is 60 hours The calculation is done in this way, based on the minimum number of daily hours in the work system, which is 7 hours, and 168 is the total number of hours worked by the individual .

If the worker completes less than 168 hours in one or more establishments, the calculation is not made, and the hours are kept as a credit, while the service is calculated for the worker in a month upon completing the quorum of 168 working hours in one facility, and the extra hours are kept as a credit, and the service is calculated as a month if the worker completes More than 168 hours in more than one facility, provided that the working hours are not less than 60 working hours in each facility, and the extra hours are kept as a credit. and collect wages .

A third of the Emiratisation percentage is calculated in the facility incentive program to localize jobs (Nitaqat) if the worker has completed 168 hours in the first facility. In the week following completion of 168 hours of work for a period of 4 weeks .

Labor courts are competent to consider disputes that may arise from the part-time work contract and the flexible work contract .

Lawyer’s office/ Ahmed Al-Ashwan Advocates and Legal Consultants


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