Saudi Arabia: Implementing Regulations to Data Protection Law Published

Saudi Arabia’s Authority for Data and Artificial Intelligence has published the Implementing Regulations to the Data Protection Law (Saudi Arabia Cabinet Decision No. 98/1443). Saudi Arabia Administrative Decision No. 1516/1445 will come into force on 14 September 2023.

The published regulations have omitted the definition of secondary use but not the concept of secondary processing and its having special requirements. They have also omitted the legal basis requirement for exercising rights.

In addition, they have omitted Article 33 on the transfer or disclosure of data to an entity outside of the Kingdom and Article 3 on the legal basis for processing. Finally, pseudonymisation will now be known as coding.

They will be published in the Official Gazette.

They have also published Regulations on cross-border transfers. Under Saudi Arabia Administrative Decision No. 1517/1445, controllers should check and ensure there are appropriate conditions that allow the transfer or disclosure outside Saudi Arabia and provide adequate protection to the personal data and the data subject’s rights.

They must limit the transfer or disclosure of personal data outside Saudi Arabia to the minimum necessary to achieve the transfer or disclosure purpose. This will be determined using data maps which indicate the need to transfer or disclose each piece of data and link it to each processing purpose outside the country. The requirements also apply to metadata, operational data, backup data, monitoring systems data, support data and data derived from personal data which directly or indirectly identifies a data subject.

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Saudi Arabia: Labour Law Penalties Regime Amended

Gulf News (United Arab Emirates), 3 September 2023: Saudi Arabia’s Human Resources and Social Development Ministry has announced a raft of amendments to labour law penalties in the Kingdom. The fines will be imposed based on the category of the establishment. Categories are now determined by the total number of employees.

Category A includes entities with more than 50 employees, Category B is designated for those with 21 to 49 employees and Category C encompasses establishments with one to 20 employees.

In terms of employers who fail to comply with Saudisation quotas or employ non-Saudis in roles reserved for Saudi nationals, offenders in Category A will be fined 8,000 Riyals, offenders in Category B 4,000 Riyals and offenders in Category C 2,000 Riyals.

When it comes to non-compliance with protection, safety, and occupational health standards, the penalties have also been amended. Offenders in Category A will be fined 5,000 Riyals instead of 10,000 Riyals, offenders in Category B 2,500 instead of 5,000 Riyals, and offenders in Category C between 1,500 instead of 2,500 Riyals.

The penalties for those who do not establish appropriate safety guidelines have also been amended. Offenders in Category A will be fined 1,000 Riyals instead of 5,000 Riyals. Offenders in Category B will be fined 500 Riyals instead of 2,000 Riyals and offenders in Category C 300 Riyals from 1,000 to 300.

Those who employ workers under extreme weather conditions without necessary safety measures will be fined 1,000 Riyals, regardless of the category they are in. Entities who fail to provide medical insurance to employees and their families will be fined 1,000 Riyals if they are in Category A, 500 Riyals if they are in Category B, and 300 Riyals if they are in Category C.

Those who employ minors will be fined 2,000 Riyals if they are in Category A. Employers who hire women within six weeks after childbirth will be fined 1,000 Riyals.

Category A establishments who employ Saudis in roles reserved exclusively for them will be fined 1,000 Riyals. Offenders in Category B will be fined 5,000 Riyals and offenders in Category C 2,500 Riyals. Entities who misrepresent data to the Ministry will be fined 3,000 Riyals instead of 20,000 Riyals.

Category A entities who carry out discriminatory hiring practices will be fined 3,000 Riyals, while those in Category B who commit the offence will be fined 2,000 Riyals and offenders in Category C 1,000 Riyals. Establishments not paying salaries in the official currency within the stipulated timeframe will be fined 300 Riyals.

Also reported in Al Madina on 23 August 2023. Read the full story here.

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Saudi Arabia: Passenger Rights Protection Regulations Approved

Khaleej Times (UAE), 24 August 2023: Saudi Arabia’s General Authority of Civil Aviation (GACA) has announced it has approved new passenger rights protection regulations. The regulations have been issued to strengthen the protections for travellers where there are airline or airport disruptions.

They will come into force on 20 November and cover ticketing, boarding, in-flight services, baggage handling, and helping passengers with special needs, including those with reduced mobility.

Under the changes, compensation provisions have been strengthened and extended. Compensation of between 150 and 200% of the original ticket value could be awarded for flight delays, cancellations, overbooking and unexpected stopovers.

For lost or damaged baggage, travellers could be compensated with approximately 6,568 Saudi Riyals. There are also provisions for unique travel circumstances like the Haj and Umrah pilgrimage.

In these cases, passengers will be able to request the termination of the contract with the air carrier where the flight is delayed for more than two hours.

Also reported in Al Madina on 23 August 2023. Read the full story here.

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Saudi Arabia: Implementing Regulations to Audio-Visual Law Amended

Okaz, 15 August 2023: Amendments to the Implementing Regulations to the Audio-Visual Law have been approved. The amendments confirm the prohibition of displaying content that encourages, promotes or leads to violence, intimidation, witchcraft or sorcery.

The amendments urge adherence to the principles of objectivity, honesty, accuracy, confidentiality of information and fairness in dealing with various topics.

It also urges professional standards and practices related to the media in broadcasting news, services, and advertisements to be complied with.

The amendments state the content must not violate the Kingdom’s principles and must not call for violence, or glorify groups with destructive political, ethnic, economic, financial, ideological or social tendencies.

It must not violate the rights of women or children and not prejudice the dignity of people and their private lives or belittle or offend them either.

Read the full story here.

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Saudi Arabia: Companies Must Disclose Training Information

Arab News, 19 August 2023: Saudi Arabia’s Human Resources and Social Development Minister has issued a Decision requiring companies with more than 50 employees to disclose their training information.

This information will have to include hours and trainee counts, training plans, activity reports, trainee numbers and budget allocation for the next year.

The information will help the Ministry assess training indicators in the job market and work with the private sector to improve training programmes for employees. The Decision has been issued to improve training in private sector companies as well as improve workforce capabilities and promote development and growth opportunities.

In addition, it aims to improve performance and productivity and support the national programme to incentivise private sector training for job market readiness.

Also reported in Albilad Daily on 19 August 2023. Read the full story here.

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Saudi Arabia: Ministry Urges Companies to Submit Financial Results Electronically

Okaz, 16 August 2023: Saudi Arabia’s Commerce Ministry has urged companies to prepare and deposit their financial statements electronically via the Quaem platform to avoid violating the provisions of the Companies Law (Saudi Arabia Cabinet Decision No. 678/1443).

The Ministry stated that simple companies, simple joint-stock companies, limited liability companies, partnerships, and simple recommendations must prepare financial statements at the end of each fiscal year in line with the accounting standards approved in the Kingdom.

They should then deposit them within six months of the end of the fiscal year in line with Article 17 of Saudi Arabia Cabinet Decision No. 678/1443 (the new Companies Law).

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Saudi Arabia: Compulsory Health Insurance Eligibility Changes Announced

Arab News, 12 August 2023: Saudi Arabia’s Council of Health Insurance has announced orphans whose parents are not known or whose mothers are not known will qualify for compulsory health insurance now. They will qualify through their foster families.

Their coverage is effective from the issued date of their ID certificate. The certificate will be issued by the Human Resources and Social Development Ministry and will be delivered to the foster parent who is the beneficiary of the coverage.

The coverage will end when male dependents reach 25, female dependents marry or custody ends. It will also end if the Ministry cancels the foster family’s custody of the orphan, the orphan dies or the foster parent’s coverage expires.

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Saudi Arabia: Penalties and Violations Schedule to Labour Law Amended

Gulf News, 11 August 2023: Saudi Arabia’s Human Resources and Social Development Ministry has announced it has amended the schedule of violations and penalties under the Labour Law (Saudi Arabia Cabinet Decision No. 219/1426).

Among other amendments, employers who retain the passports or residency permits of their employees or their family members will be fined 1,000 Riyals. In addition, employers who hire members of staff without the appropriate work permit or without notifying the Ajeer programme will be fined 5,000 Riyals.
An employer who recruits a non-Saudi worker without the requisite work permit or without notifying the Ajeer programme will be fined 10,000 Riyals.

Employers who neglect occupational protection, safety, and health standards approved by the Ministry will be fined between 1,500 and 5,000 Riyals while the firm’s owner or representative will be held accountable for any accidents on the premises.

Entities employing over 50 workers have to provide designated childcare or nursery spaces. If they do not and there are at least 10 children under the age of six in care, they will be fined 5,000 Riyals. Those who hire children under 15 will be fined between 1,000 and 2,000 Riyals. Those who employ women within six weeks post-childbirth will also be fined 1,000 Riyals.

Any employer who commits any form of discrimination against current employees or job applicants will be fined 3,000 Riyals. This includes disparities in work conditions, advertisements, or wages for jobs of equal value between male and female workers.

• Employers who retain passports or residency permits of employees or their family members will be fined 1,000 Riyals.
• Employers who fail to comply with disbursing wages in the official currency through approved bank accounts will be fined 300 Riyals.
• Employers who do not establish an abuse investigative committee or fail to address behavioural violations within stipulated timeframes will be fined 5,000 Riyals.

Fines have to be settled within 60 days of the notification being received. Anyone who fails to comply could have Ministry services suspended.

Also reported in Okaz on 10 August 2023. Read the full story here.

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Saudi Arabia: Updated Civil Associations and Organisations Regulations in Force

Almadina,7 August 2023: The National Centre for the Development of the Non-Profit Sector has announced the updated NGO executive regulations came into force on 4 August 2023.

The updated regulations aim to empower civil associations and organisations, help maximise their impact and increase the effectiveness of their development projects. It is hoped the changes will help them develop their work mechanisms and administrative systems, and also help them achieve financial sustainability.

The updates are also intended to enhance the legal status of civil associations and institutions and raise their governance standards and the level of transparency on the work of associations and civil institution departments.

Read the full story here.

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