All You Need to Know about the Saudi Flexible Work Policy

The Ministry of Human Resources and Social Development achieved a remarkable leap by launching the policy for flexible work. This represents a first step in supporting the competitiveness of institutions and companies, as well as providing various job opportunities for job seekers. This trend, which is part of the mechanisms for achieving the vision of the 2030 Kingdom, represents one of the tributaries of the success and dynamism of the global labor markets, especially in the retail and restaurant sectors, as in the United States and the United Kingdom.

 

What is the flexible work system?

The traditional work system determines the daily working hours that the employee performs throughout the working days, which may not be commensurate with the pressure of work and the urgent need of additional hours during some occasions. This is why a different work system is adopted, one that enables the entrepreneur and employee to determine the number of working hours that suit both parties. This innovative method enables an agreement on an hourly wage that enables the worker to work more hours that suit his abilities and diligence, and protects the employer from a long-term contract that may not actually be commensurate with his needs in different seasons. This flexible method is called “Flextime” and is one of the most popular methods of increasing productivity and providing more job opportunities with greater efficiency.

According to a Forbes report, the data for working system preferences in the UK showed that:

  • 92% of Millennials (people born after 1980) consider the flexible work system a top priority for choosing any job.
  • 80% of women and 52% of men prefer a flexible work system.
  • 30% of employees prefer a flexible work system over an increase in wages.

These details that show the value of hourly work are not limited to the United Kingdom society, but it is rather a comprehensive belief everywhere, especially that this system guarantees the rights of the worker and the employer.

 

Pros of the hourly work system

The flexible work system has several advantages that interest job seekers or companies and CEOs:

 A. The advantages of Flexible work system for employees

The hourly work system offers employees a set of benefits, the most important of which are:

 

    1. Space for diligence and increasing income

Employees and workers can increase their income and gain an additional space for diligence by choosing the flexible work system.

This way of organizing work enables employees to work in more than one company, improve their careers, as well as increase their income.

 

    1. A special work schedule for each case

Many employees find it difficult to deal with the classic work schedule, as it imposes long working hours, without a sufficient leave (vacation) system.

This is why many men, and especially women, choose an hourly work system to avoid sacrificing family obligations at the expense of work.

 

    1. Serious and positive work

Many employees find it difficult to adapt to their job that makes them spend long hours without real production, which disrupts their careers and suppresses their ability to learn and develop.

Therefore, an hourly working system represents the best way to enable employees to leave their mark in their work without losing the sense of loyalty to the company.

 

    1. More happiness and less stress

In an IBM survey of 42,000 employees in 79 countries, researchers found that stress was significantly lower in employees that work hourly.

In contrast, the employees who worked under the traditional system were less happy and more stressed because of routine work schedules [2].

 

 

B. The advantages of Flexible work system for companies

The flexible work system provides a set of basic characteristics for the success of every project, such as:

    1. Attracting qualified employees

Most of the time, companies are not able to hire qualified employees for a long time, so CEOs choose an hourly work system as a way to contract with talented people and professional specialists.

On the other hand, qualified employees find in this hourly system an opportunity to increase their resources and improve their experiences by working in more than one company.

 

 

    1. Increasing productivity

Many administrators find it difficult to deal with wasted time for employees, especially at times when the company is less active, so contracting with workers and employees hourly is a great way to increase productivity and improve profitability.

And in cases where the company needs to increase the number of employees on a large scale, the CEOs will not worry about the difficulty of organizing new work teams and employing more manpower, as working by the hour gives them a lot of freedom.

 

    1. Improving service quality

To provide 7/7 and 24/24 services, companies find it difficult to evaluate the performance and costs of employees.

Therefore, choosing the hourly work system is an excellent way to improve the quality of services provided to clients without worrying about the additional costs that may be caused by increasing working hours or raising the expectations of goals.

 

    1. Increasing the loyalty of employees

80% of employees who work hourly at Irish Accenture said that their ability to manage work and their private life affects their career choices, and that they want to stay in the company thanks to its flexible work system.

Certainly, the greater the employee’s loyalty to the company, the more (s)he feels committed to work and the more (s)he raises his/her profitability to increase its competitiveness.

 

Flexible work system in the Kingdom of Saudi Arabia

The Kingdom was proactive, as usual, in creating appropriate legislation and laws to provide a flexible work platform that guarantees the rights of both parties. Indeed, the Ministry of Human Resources and Social Development developed the flexible work system in response to a set of royal decrees regulating work.

Among the most important details included in the flexible work system, we mention:

  • The employer is not obligated to compensate annual leave, special events or end of service benefits.
  • Workers are not subjected to a probationary period.
  • Calculating hourly work, and paying wages monthly accordingly.
  • The working hours of a single employer may not exceed 95 hours per month.
  • The worker has the right to agree or refuse when requested to work.

 

These simple details will increase the dynamism of the labor market in the Kingdom, and leave more space for effort for workers and employees who wish to develop their incomes and improve their careers in a distinct and unconventional way. Here are the details of this flexible system.

 

The rules of the Flexible work system

To further understand the specificities of this system of work for some time, the following details have been defined:

1. Flexible work is the work performed by an employee who is not affiliated with the employer, and the wage of this employer is calculated hourly. And it is required that the working hours under one employer be less than half of the approved working hours in the company per month.

2. Hourly work is restricted to Saudis only.

3. The percentage of workers employed by the employer is determined according to the sectors determined by the ministry through its online portal.

4. The employer does not compensate the workers for paid leave, such as annual leave, sick leave, or special events.

5. The employer is not obliged to provide the end of service benefits to the hourly workers who worked with him.

6. The employer cannot impose a trial period on workers who work with the flexible work system.

7. Flexible work contracts are referred to the Annuities Branch of the Social Insurance System, according to the rules set by the Corporation.

8. The worker on a flexible contract system counts as one-third (1/3) of the Saudization percentage in the establishments incentive program. However, it is required that the worker accumulate at least 168 hours in flexible work.