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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Saudi Arabia: SAMA Approves Insurance Financial Technology Rules

Almadina, 30 July 2023: The Saudi Central Bank SAMA has approved the insurance financial technology rules. This follows a public consultation on the draft rules through the “Istitlaa” platform.

The changes are a result of the emergence of a number of insurance financial technology companies that are providing various products and services.

The rules protect the rights of those dealing with insurance financial technology practitioners and encourage fair competition in providing technical solutions and services, in order to support the growth and stability of the sector.

For the full story, click here.

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Saudi Arabia: New Real Estate Brokering and Services System Started

Almadina, 19 July 2023: The Saudi Real Estate General Authority has announced the start of brokerage activities and real estate services in line with the Real Estate Brokerage System, which has been approved by the Council of Ministers.

The period was granted for real estate brokers to correct their position and change their operations expired on 18 July 2023.

The new system includes seven real estate activities licensed establishments can undertake. These are real estate brokerage, real estate marketing, property management, facilities management, real estate auctions, real estate advertising, and real estate consultancy and analysis.

Individuals are limited to undertaking only four activities – brokerage, marketing, advertisement, consultancy and real estate analysis.

For the full story, click here.

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Saudi Arabia: To Protect Intellectual Property Rights

Arab News, 7 July 2023: During a meeting in Geneva, the CEO of the Saudi Authority for Intellectual Property has advocated for the inclusion of Arabic as one of the languages used by The Hague and Madrid systems, which protect intellectual property rights.

He has emphasised the country’s commitment to safeguarding and enforcing intellectual property rights, as well as enhancing the enforcement system. He has also expressed Saudi Arabia’s anticipation of joining the International Searching and Preliminary Examining Authority under the Patent Cooperation Treaty.

Additionally, he highlighted the nation’s focus on developing intellectual property through a national strategy which fosters innovation and creativity.

Saudi Arabia has also become a member of the Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of Their Phonograms and has made efforts to update relevant intellectual property legislation.

For the full story, click here.

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Saudi Arabia: VAT on Profit Margin of Refurbished Used Cars Sale Allowed

Okaz, 1 July 2023: The Zakat, Tax, and Customers Authority (ZACTA) has started allowing car dealers to calculate VAT on the profit margin of selling refurbished used cars. ZATCA is targeting licensed individuals who have a permit to operate car dealing shops in this respect.

The Authority explained that this method was not mandatory as it was possible to calculate VAT based on the full amount due for the car as it is the case currently.

The VAT on the fringe method can be applied when the car is classified as refurbished used cars by the authority and the car was in the Kingdom and has been used in the Kingdom before.

For the full story, click here.

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