Essential Checklist: Hiring Employees in Saudi Arabia After Your Commercial License is Issued

Considerations For Hiring Employees in Saudi Arabia

1. Understand Saudi Labor Laws

Before hiring, you must familiarise yourself with Saudi labour laws. These laws are regulated by the Ministry of Human Resources and Social Development (HRSD). Key points include:

• Saudisation (Nitaqat Program): The government mandates the employment of a certain percentage of Saudi nationals in private companies. Compliance with this policy is crucial to avoid penalties and ensure smooth business operations.
• Employment contracts: Ensure all employment agreements are formalised in writing and comply with Saudi labour standards, including work hours, salary, benefits, and notice periods.

2. Classify Your Job Positions

Organise and classify job roles according to the skills required and their alignment with Saudisation regulations. The classification process helps determine which roles must be filled by Saudi nationals and which can be offered to expatriates.

3. Secure Employee Work Permits and Visas

Hiring expatriates requires securing the appropriate work permits and visas. This includes:

• Iqama (Residence Permit): The employer is responsible for applying for the Iqama for expatriate employees, ensuring they can legally reside and work in Saudi Arabia.
• Work visa: Before employees enter Saudi Arabia, they need a valid work visa, which the employer must sponsor.

Partnering with specialists like Gatestone Group can simplify the visa and permit process, ensuring your hiring procedures align with current regulations.

4. Register with Government Entities

As an employer, you must register your business with relevant government bodies, including:

• GOSI (General Organisation for Social Insurance): Register all employees to provide them with social insurance benefits.
• Ministry of Human Resources and Social Development (HRSD) platform: To report job openings and manage employee documentation.

These registrations help maintain compliance and protect your company from potential legal issues.

5. Draft Comprehensive Job Descriptions

Clearly define roles and expectations through detailed job descriptions, including:

• Key responsibilities
• Minimum qualifications and skills
• Salary range and benefits

Having well-defined job descriptions makes recruitment efficient and helps candidates understand their roles before they apply.

6. Set Up a Recruitment Strategy

Design a recruitment strategy that aligns with your budget and hiring goals. This can include:

• Online job portals: Utilise platforms such as LinkedIn or Indeed to reach qualified candidates.
• Recruitment agencies: Partnering with recruitment agencies can help streamline the search for top talent.
• Networking events and job fairs: These can be useful for connecting with job seekers directly.

For tailored advice and support in building a recruitment plan that meets your business goals, Gatestone Group offers expert consulting services for startups.

7. Prepare Employment Offers and Contracts

Prepare employment offers that are in line with industry standards and include:

• Job title and job description
• Salary and benefits
• Work schedule and location
• Probation period terms

Ensure that contracts are bilingual (Arabic and English) to ensure understanding.

8. Onboard New Employees Effectively

A well-structured onboarding process helps new employees integrate efficiently. This involves:

• Orientation programs: Introduce your company culture, policies, and procedures.
• Training and development: Offer training sessions to equip employees with the necessary skills.
• Administrative tasks: Complete tasks such as providing employees with necessary equipment and ID cards.

9. Compliance with Health and Safety Regulations

Employers must adhere to occupational health and safety standards to create a safe working environment. This includes:

• Workplace safety training: Mandatory training for employees to prevent workplace accidents.
• Regular safety audits: Regularly conduct safety audits to maintain a secure environment.

10. Employee Benefits and Rights

Saudi labour law mandates certain benefits for employees, such as:

• Paid annual leave: Minimum of 21 days per year, which increases to 30 days after five years of service.
• Health insurance: Providing health coverage is mandatory for all employees.
• End-of-service gratuity: Employers must offer gratuity pay based on the employee’s length of service.

Conclusion

Hiring employees in Saudi Arabia requires careful planning and adherence to regulations. This essential checklist will help set your business up for success, from securing work permits to developing strong onboarding practices. For personalised guidance in establishing your hiring processes and navigating labour laws, Gatestone Group is here to support your growth with its comprehensive business consulting services.

Ready to take your business to the next level? Contact Gatestone Group today for expert assistance in building a compliant and efficient hiring framework in Saudi Arabia.