Decree

Arabic

Introduction

The Common Customs Law of the States of the Cooperation Council for the Arab States of the Gulf was issued by Royal Decree D/41 dated 3 Dhu Al-Qa ‘dah 1423 [27 December 2003], under which the customs procedures and regulations in the States of the Council in accordance with the provisions of international agreements relating to customs were unified. The law addresses a number of customs procedures, including the controls and conditions for the exemption of returned goods, in accordance with the provisions of the Common Customs Law article 105. Ministerial Decision 1318 dated 7 Jumada Al-Thani 1424 [6 August 2003] was previously issued, specifying these conditions. The project aims to update the requirements relating to the exemption of returned goods, address the challenges related to goods that are exported to complete their manufacture or repair abroad, and prepare the control document in accordance with the most prominent relevant international practices. Accordingly, this project is an updated version of the aforementioned ministerial decision.

Chapter One Preliminary
Provisions

Article One
Definitions

The following phrases and terms have the meanings assigned to each of them, unless the context requires otherwise:

Authority: The Zakat, Tax, and Customs Authority.

Board: The board of directors of the authority.

Unified Customs Law: The Unified Customs Law of the Cooperation Council for the Arab States of the Gulf approved by Royal Decree D/41 dated 3 Dhu Al-Qa ‘dah 1423 [27 December 2003].

Executive regulation: The Executive Regulation of the Unified Customs Law issued by Ministerial Decision 2748 of 25 Dhu Al-Qa ‘dah 1423 [18 January 2004].

Controls: The controls for exempting returned goods.

Customs duties: The amounts obtained for goods in accordance with the provisions of the Unified Customs Law.

Goods: Every natural substance or animal, agricultural, industrial, or intellectual product.

Returned goods: Goods that have been exported from the Kingdom of Saudi Arabia and re-imported.

Origin of goods: It is the country of their production, whether they are natural resources, agricultural crops, livestock, or industrial products.

Importer: A natural or legal person who imports goods.

Article 2
Scope of Application of the Controls

Without prejudice to the relevant applicable laws and regulations, the returned goods stipulated in article 105 of the Unified Customs Law are subject to the provisions of these controls.

Chapter Two Exemption
Controls

Article 3
Goods of National Origin

Returned goods of national origin are exempt from customs duties, if they are returned in accordance with the following:

1. Obtaining the approval of the authority before the goods leave the customs directorate.

2. Submitting the export statement in its entirety upon re-importation.

3. That the goods have a clear and non-removable indication of origin, according to the nature of each product.

4. That the goods are in the same condition at the time of export.

Article 4 Foreign
Goods

Returned foreign goods are exempt from customs duties if they are proven to be re-exported in accordance with the following:

1. Obtaining the approval of the authority before the goods leave the customs directorate.

2. That the importer in whose name the goods are imported is the one who re-exports them.

3. Re-importing the goods within a Gregorian year from the date of their re-export.

4. That its customs duties have been collected and have not been recovered.

5. Submitting a re-export statement proving its origin, specifications, and distinctive marks, and that the goods carry the same origin, specifications, and distinctive marks.

6. Submitting all customs data and its annexes relating to previous import and export operations for the goods to be exempted.

7. That the returned goods are in the same condition in which they were at the time of re-export.

8. That the goods carry a clear and non-removable indication of origin according to the nature of the product.

Article 5
Exempting Returned Goods Previously Temporarily Exported

1. Goods that have been temporarily exported are exempt from customs duties in accordance with the requirements stipulated in the executive regulation.

2. Customs duties are collected on the increase in the goods temporarily exported to complete their manufacture or repair.

Chapter Three Final
Provisions

Article 6 General
Provisions

In application of the provisions of these controls, the authority may issue any instructions or manuals clarifying the procedures relating to the exemption of returned goods.

Article 7
Application of the Controls Provisions

The provisions of these controls apply to all returned goods in accordance with the provisions of the Unified Customs Law. Any provision of these controls is void in the event of its conflict with any of the provisions of the Unified Customs Law, its executive regulations, and the international agreements in force.

Article 8
Publication and Enforcement

These controls are issued and amended by a decision by the board and are effective from the date of their publication in the official gazette.

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Published in Umm Al-Qura 5038 issued on 13 July 2024.

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Issued by …

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Published in Umm Al-Qura 5036 issued on 28 June 2024.

Arabic

1․ Introduction and Objective of the Manual

The Ministry of Human Resources and Social Development keen to provide stimulating, productive, and stable job opportunities for male and female citizens in the various regions of the Kingdom, to raise their level of participation in the labor market, and based on the direction of the ministry to adopt non-traditional work systems, including the flexible work arrangement in accordance with the objectives of Vision 2030, and with reference to Ministerial Decision 146481 dated 7 Ramadan 1441 [1 May 2020], and Ministerial Decision 153307 dated 11 Dhu Al-Qa’dah 1445 [16 May 2024], regarding the flexible work system to enable young men and women to obtain job opportunities.

This decision is part of a set of organizational decisions that the ministry has worked on to provide job opportunities that stimulate national human resources, expand the circle of participation and empower Saudi workers in the labor market, in line with the strategy of the ministry concerned with human capital development, and enhance contribution to the economic system.

The aim of this guide is to clarify the details of a flexible work decision as well as to answer frequently asked questions.

2․ Terms and Definitions

Flexible work:

“Flexible” work means work performed by an employee with one or more employers, where the wage is calculated on an hourly basis.

Procedures and penalties:

The procedures stipulated in this manual.

Service providers:

Entities that provide recruitment services under flexible work arrangement, in a manner that is legal, documented, and approved by the Ministry of Human Resources and Social Development.

Nitaqat Program:

An initiatives of the Ministry of Human Resources and Social Development aiming to increase the participation rate of the Saudi workforce in the private sector.

3․ Rules for the Flexible Work System

1․ Flexible work means work performed by a worker who is not affiliated with one or more employers where the wage is calculated on an hourly basis, provided that the working hours of the worker with one employer are less than half of the working hours of the establishment.

2․ Employment contracts under the flexible work system are limited to Saudis only.

3․ The percentage of workers with the employer is subject to flexible work system contracts according to the sectors and professions specified by the ministry in the electronic portal.

4․ The employer is not required to compensate the worker under the flexible work contract for any types of paid leave, including annual leave, special occasions leave, and sick leave.

5․ The employer is not required to compensate the worker under the flexible work system contract with an end of service gratuity.

6․ The worker under the flexible work system contract is not subject to a probation period.

7․ The contract under the flexible work system is subject to the pensions branch and the occupational hazards branch in accordance with the rules and regulations prescribed by the General Organization for Social Insurance.

8․ The calculation of nationalisation percentages is subject to the program of incentivising establishments to nationalise jobs “Nitaqat” in accordance with the decisions issued by the program and the following controls:

(a) A point is calculated for the establishment upon the completion of a total of 160 flexible working hours completed for the worker or for a group of workers.

(b) The nationalisation percentages must be calculated as determined by the ministry for the total number of workers in the establishment.

9․ The wage of the worker in the flexible work system must be calculated according to the hourly wage, and their wages must be paid on a monthly basis or by agreement of the two parties.

10․ The working hours that a worker performs under the flexible work system with a single employer that exceeds 95 hours per month are considered additional working hours. By agreement of the parties, these hours may be compensated at a wage similar to the basic hourly wage agreed upon in the employment contract, provided that the total working hours for the worker do not exceed 160 hours per month with a single employer.

11․ Subject to the provisions of the employment contract, the worker under the flexible work system has the right to approve or reject when he requested to work at any time without taking any procedure against him.

12․ The duration of the employment contract under the flexible work system with a single employer must not exceed one year—consecutive or intermittent—and in the event that this period is exceeded, the employer may extend or renew the contract with the consent of the worker or enter into an employment contract subject to all the provisions of the Labor Law.

13․ The provisions of article 83 of the Labor Law relating to the requirement that the employer does not compete after the end of the employment relationship apply to the employee in accordance with the flexible work system.

14․ An employment contract must be electronic and for a definite period. The wage in it is determined by the hour and it is permitted to specify and amend the times when the employee attends to perform the work after agreement between the parties.

15․ It is required for the recruitment of employees in the flexible work system to document the contract in the electronic portal specified by the ministry, and it is subject to the procedures of the Executive Regulation of the Labor Law 75913 dated 19 Jumada Al-Awwal 1445 [2 December 2023], and what occurs to it.

16․ Service providers must be approved for flexible work based on the criteria published in the electronic portal that the ministry specifies.

17․ A worker subject to the flexible work system is subject to the provisions of the Labor Law in relation to rest periods.

4․ Date of Application of the Decision

This decision is effective from the date of publication of the Ministerial Decision for the Flexible Work System 153307 dated 11 Dhu Al-Qa’dah 1445 [19 May 2024].

5․ Scope of the Decision

This decision applies to all entities wishing to benefit from recruitment under the flexible work arrangement.

6․ Contractual Relationship, Conditions, and Controls

The contractual relationship of the flexible worker is subject to the provisions of the Labor Law and the contractual relationship of the flexible worker is regulated by an employment contract that is documented in the electronic portal specified by the ministry (the flexible work platform) in accordance with the terms and conditions stipulated in the unified contract in the flexible work platform.

7․ Number of Flexible Worker Contracts and the Mechanism for Calculating the Flexible Worker in the Nitaqat Program

– There is no maximum limit to the number of flexible worker contracts.

– A minimum of 160 hours per month must be completed for the worker or the group of flexible workers to be calculated in the Nitaqat program.

– A maximum of 20% of the total Saudi employees at the facility is calculated in the Nitaqat program (and the ministry has the right to amend the percentage as it deems appropriate and determines in the electronic portal specified by the ministry).

– The weighing and calculation mechanism are subject to the calculation controls in the Nitaqat program.

8․ Violations and Punishments

Flexible work is subject to the procedures of the Executive Regulation of the Labor Law 75913 dated 19 Jumada Al-Awwal 1445 [2 December 2023] and any of its amendments.

9․ Frequently Asked Questions

What are the controls of the duration of the flexible employment contract?

The duration of the employment contract under the flexible work system with one employer must not exceed one year—consecutive or intermittent—and in the event that this period is exceeded, the employer may extend or renew the contract with the consent of the employer or enter an employment contract subject to all the provisions of the Labor Law.

Is contracting through the flexible work portal mandatory?

Yes, the contract must be documented through the electronic platform launched by the Ministry of Human Resources in accordance with Decision 153307 dated 11 Dhu Al-Qa’dah 1445 [19 May 2024].

Is there a percentage or number of contracts for workers of the flexible work system in a single establishment?

Establishments can contract with flexible workers without a maximum limit, but flexible employees in the Nitaqat program must only be counted as 20% of the total Saudi workers at the same establishment.

Is the flexible work system limited to Saudis?

The flexible work system is currently limited to Saudis only.

Is the worker registered with the General Organization for Social Insurance through the flexible work portal?

When the contract is documented in the flexible work portal, the worker is automatically registered with the General Organization for Social Insurance and the calculation is made in accordance with the mechanism followed by the General Organization for Social Insurance.

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Published in Umm Al-Qura 5033 issued on 24 May 2024.

Arabic

Published in Umm Al-Qura 5034 issued on 31 May 2024.