employment contract Hello. Many of you contacted me regularly for information on the employment contract, the cost of living, trading. So here's an article that I hope will give you lots of practical information to help you.
The employment contract:
about me, and in many cases the employment contract and local. That is to say that it is governed by the Labour Ministry in Saudi Arabia. The latter will therefore take into account all elements related to the country. This is where should be written in two languages in general, in English and Arabic. In the case of a French expatriate who you may, however, that this contract are in French. If this is a French company that writes a contract in French to relocate an employee, then you will follow the usual rules required a French employee. In the case of a local employment contract, here are the various elements that should be vigilant.
Vacations:
in most cases, the number of days worked and five days a week, but very often it may also be six days a week Namely, a day that weekend are Thursday and Friday, Friday being the default idle logically single day by day prayer. In my case, and most of the cases I have encountered, the minimum number of vacation and 22. In addition it nevertheless still other nonworking time during the year, a few days of Ramadan, Eid a few days and an additional day, the king. Ultimately, if we take an accurate count, we get more time off than in France. Nevertheless, for certain sectors such as retail (Carrefour) you will understand easily as one may have fewer days off given the imperatives of service to the public. The days are acquired early in the mission, which accumulate month after month, you can take immediately. I have observed accumulations of vacation, he denies not uncommon that most of Saudi employees, often take a full month during the summer period.
Salary:
in general, I would say that wages are roughly similar to those you might get in France. But beware, I'm talking about the gross salary. Given that Saudi Arabia no taxes, your net salary will be crude. Hence already a gain of almost 26%. To this, consider taxes. Since your business is conducted abroad, Saudi Arabia, so a third of the European Union, you are governed by the tax treaty between Saudi Arabia and France. This agreement does not exist. So by default you are required to pay your taxes in the host country, that is to say Saudi Arabia, countries that do not ask you to pay taxes. This explains the non-wage inflation, in effect, employers are generally tax treaties which the country expatriates. They So just give you a gain in purchasing power, primarily due to profits tax. But depending on your position, the gain can be very important.
Vehicle:
default, and for all employees that their position in the company, or their level of pay, a bonus called transport is allocated to each employee. This premium represents 10% of monthly salary, paid monthly. If for example your monthly salary is 20 000 SAR, then your premium will transport the 2000 SAR. As this money is paid monthly, you are free to make what use you want. For my part, I have benefited a company car, purchased by the company, so I reverse all or part of my premium transportation to my employer, the latter serving as long-term renter. I urge you to use a vehicle without a car you can never do anything. Now there is also the land of thousands of drivers, taxi, that you can borrow, monthly, yearly, depending on the use you want to make your means of locomotion. It exists in the country, some bikes are not dreaming, including how in France, for fluency. Given the quality of roads and the dangerous traffic, I'd advise against it strongly.
Housing:
most, if not the majority of expatriates live in compounds. It is closed residence, a sort of mini village, in which control a number of services, supermarkets, dry cleaners, hairdressers, travel agencies, pool, gym ...
To accommodate you, just as for transportation, you are awarded a bonus annually. This corresponds to three times your monthly salary. If for example your monthly salary and 20 000 SAR, your annual premium will be 60 000 SAR. Here, there may be a problem. In fact, you may need to choose yourself your home if your employer does not require this. Be aware that these homes, requires the annual payment of rent on the first day. Moreover, they often require, if not all the time, being under contract with the company, not employees. Check with your employer or you live if your home has one, the size of it, and make sure that the payment be supported, and the time by your employer. Make sure also that depending on your date of departure from the country, which can occur at any time, you will not have to pay penalties, or possibly missing rent to your employer. It is not uncommon to have an employer who contracts with the place of residence, but that will soon be inclined to ask you to state penalties for any reason.
Travel:
depending on your position within the company, you may have to travel. In other cases, like mine, another family remains in France and do not wish to live in Saudi Arabia, or perhaps not right away. In this case you may need to travel regularly between your country of work and family. The number of tickets, you can be part of the negotiation. Generally, most companies Saudi award annually a plane ticket round trip in second class to end to join your families in their countries. For my part, and given my position, I was seven Roundtrip. Similarly, trying to clarify when and how will set the airline tickets. A Saudi company promises easy, honors more difficult.
Health Plans:
a mandatory basis, the companies pay health insurance for their employees. The health system and private in Saudi Arabia. The amount of private hospitals and clinics are everywhere. When you know the amount paid the benefit of the local health insurance, I think you have an idea of the protection that you can claim. You are free to choose this system. For my part, I preferred the health insurance contributions in France, CFE is the equivalent of social security but for expatriates. More expensive, yet it gives you the ability to always be treated in France and abroad. Given the frequent use to France, I opted for the health care system in France is a question of trust. So feel free to refuse or not your employer coastal locally, just thought to ask to pay this amount, even if it is negligible.
Visas:
your employer is your sponsor. It is he who gives you the right to return to Saudi Arabia. It is also his responsibility to get you a title stay.The Iqama work permit is a kind of passport. Logically, and taking into account local rules, the employer of all keep your passport when you are in Saudi Arabia, and give it to you only when you want to leave the country. Moreover, in order to leave the country when you have a residence permit, you need an exit visa. This visa can be output unique, for a month for three or six months in the latter case it is called multiple. Make sure during the negotiation of power, and the renewal of this visa. For my part, I am also worried still have my passport with me, for me it was a safety issue.
Permit:
quickly note that I mentioned earlier, driver's license. In fact, if you have a work permit, weighed under an obligation to lead, to have an international driving license. You can easily get there, for that you will find useful information on the website of the consulate in Jeddah. You can also get free in France, from your prefecture.
Payment:
point perhaps most importantly, I wanted to keep the end is that of payment. Saudi companies have a very big flaw, never pay wages in, or more generally never pay the amounts due on time. They are cons always full of very good wishes. For me, the biggest delay is mounted to five months, further knowledge has waited more than six months. In this case, understand that you work and you collect unpaid wages. Locally, little or no recourse, maybe a little support from the Ministry of Labour, without much hope. Make sure in advance how to react. While the cost of living is low in Saudi Arabia, but becomes difficult when one is not paid. Check with your employer payment dates, and there may be a clause for non-payment.
Currency:
in my case, my contract is written in local currency, that is to say in SAR (Saudi Riyal). In two years I have lost 20% of my salary. The SAR is pegged to the dollar, and for over two years the dollar Euro falls. So remember to talk about the currency you will pay, but how can you possibly protect you from rate fluctuations.
Well, I hope this information will be helpful, I suggest you use this article for us to enrich, enrich your questions, enrich my answers, let us also how going on your own negotiations for over a year and I had many phone calls, physical meetings, videoconferences to assist you, give you a clues, tracks. Send us your feedback, is that this information have been useful, and above all, enlighten us a little about your own view of work in Saudi Arabia.
Thanks and see you soon.
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