In the Middle East, Saudi Arabia and the United Arab Emirates (UAE) stand as prominent destinations for expatriate workers seeking employment opportunities. Both nations boast dynamic economies fueled by diverse industries, but they differ significantly in their approach to labour regulations. Let’s delve into the intricacies of Saudi Arabia’s labour law and compare them with the recent reforms in the UAE, shedding light on how they impact employers and employees.
- Employment Contracts: In Saudi Arabia, employment contracts are typically written in Arabic and must adhere to Sharia principles. These contracts often span indefinite periods, providing job security to employees. Conversely, the UAE recently introduced amendments allowing for fixed-term contracts of up to three years, offering employers greater flexibility in workforce management.
- Probationary Periods: Both countries recognize probationary periods during which employers assess new hires’ suitability for the role. However, the UAE’s new labour laws permit job changes during probation, providing more mobility for employees compared to Saudi Arabia’s stricter regulations.
- Working Hours and Leaves: Saudi Arabia mandates a maximum of eight hours of work per day and grants annual leave of up to thirty days. In contrast, the UAE has introduced flexible working arrangements and expanded maternity and compassionate leave entitlements, signaling a progressive shift towards better work-life balance.
- Salary Payments and Gratuity: While both countries require timely salary payments, the UAE’s recent legislation allows for payment in any currency, enhancing financial flexibility for employers and employees alike. Additionally, the UAE has revised gratuity entitlements, streamlining the process for departing employees.
- Discrimination and Equal Pay: Both Saudi Arabia and the UAE prohibit discrimination based on gender, nationality, religion, or disability. However, the UAE has taken further steps to ensure equal pay for men and women in similar roles, promoting gender equality in the workplace.
- Enforcement and Compliance: Enforcement mechanisms differ between the two countries, with Saudi Arabia’s Ministry of Human Resources and Social Development overseeing labour regulations, while the UAE’s Ministry of Human Resources and Emiratisation (MOHRE) takes charge of labour affairs. Both nations prioritize compliance through inspections and penalties for non-compliance.
- Foreign Workforce: Both Saudi Arabia and the UAE heavily rely on expatriate labour to fuel their economies. While Saudi Arabia has recently implemented initiatives to increase employment opportunities for Saudi nationals, the UAE continues to attract global talent through progressive labour reforms and investment in infrastructure and innovation.
In conclusion, while Saudi Arabia and the UAE share common goals of fostering economic growth and ensuring fair labour practices, their approaches to labour regulation exhibit notable differences. While Saudi Arabia’s labour laws are rooted in traditional and religious principles, the UAE’s recent reforms signal a shift towards modernization and adaptability. Ultimately, both nations strive to create conducive environments for businesses to thrive while safeguarding the rights and welfare of their workforce.
