Article 70 of the Saudi Labor Law is one of the most important provisions in the system. It protects employees from exploitation by employers who might impose excessive or arbitrary penalties, thereby adding unnecessary burdens on employees and making it difficult for them to continue their work. The article establishes limits on these penalties to prevent abuse of power by employers.
In this article provided by Al-Othman Lawyers and Consultants, we will offer an overview of the Saudi Labor Law, the provisions of Article 70, a detailed explanation of its key clauses, and its scope and application in practical scenarios.
For further assistance, you can consult a labor disputes lawyer, with expertise in legal consultations and resolving labor conflicts.
Contents
Overview of the Saudi Labor Law:
This law was issued on 23/08/1426 AH (corresponding to 27/09/2005 AD) and published on 25/09/1426 AH (corresponding to 28/10/2005 AD). It is one of the most significant legislations, as it was established to regulate the relationship between employers and employees, achieve balance between the two parties, and clarify their respective rights and obligations. This ensures the development of the labor market and enhances national economic growth.
The law includes the following areas:
- Definitions and general provisions
- Regulation of employment processes
- Employment of non-Saudis
- Training and qualification
- Labor relations
- Working conditions and terms
- Part-time work
Today, we will focus on Article 70 of this law.
Article 70 Text:
No disciplinary penalty may be imposed on an employee for an act committed outside the workplace unless it is related to the work, the employer, or the responsible manager.
Furthermore:
- A fine imposed for a single violation must not exceed the equivalent of five days’ wages.
- Only one penalty may be imposed for a single violation.
- No more than five days’ wages may be deducted from the employee’s salary in a single month to cover fines.
- The duration of suspension from work without pay must not exceed five days per month.
Read also: Saudi Labor Law Article 81: Key Provisions and Dispute Resolution
Objective of Article 70:
One of the primary objectives of this article is to protect employees from arbitrary penalties by establishing specific conditions for imposing disciplinary actions in a way that minimizes harm to the employee.
The article also aims to:
- Set a maximum limit for fines to prevent employers from overstepping their authority and causing undue harm to employees.
- Define clear conditions for deducting fines from an employee’s salary in a given month to ensure that such deductions do not significantly impact the employee’s financial responsibilities or life outside work.
- Specify that penalties can only be imposed for violations committed in the workplace. This prevents employers from exploiting minor errors made by employees outside of work.
An exception is provided for violations directly related to the work, employer, or responsible manager. In such cases, the employer has the right to impose fines, but only within the limits specified by this article.
Read also: Understanding Article 77 of the Saudi Labour Law
What Does Article 70 Cover?
Explanation of the Article:
Article 70 of the Saudi Labor Law was enacted to protect employees from unfair disciplinary penalties. It specifies that an employee must commit a violation within the workplace for a penalty to apply, except when the violation is directly related to the work, the employer, or the responsible manager. In such cases, disciplinary penalties may be imposed.
The article also prohibits imposing multiple fines for the same violation, ensuring fairness to the employee. It sets a maximum limit for fines, stipulating that the total fine must not exceed the equivalent of five days’ wages in a single month. Furthermore, no more than five days’ wages may be deducted per month to settle the fines. Additionally, the duration of suspension from work without pay cannot exceed five days in a single month.
What Is a Disciplinary Penalty?
A disciplinary penalty is an action taken against an employee who commits a violation during their work. The goal is to correct the employee’s behavior and prevent repeated errors. Disciplinary actions are typically applied for repeated offenses or serious violations.
Key Provisions:
- Location of the Violation:
The violation must occur at the workplace unless it is directly related to the work, employer, or responsible manager. - Maximum Fine:
The fine must not exceed the equivalent of five days’ wages for a single month. - Fine Payment System:
The employee’s wages may only be deducted up to the equivalent of five days’ wages per month to settle imposed fines. - Duration of Suspension:
The suspension without pay must not exceed five days in a single month.
Read also: Understanding Saudi Labor Law Article 80: A Comprehensive Guide
Practical Examples of the Application of Article 70:
- Violation Inside the Workplace:
If an employee deliberately damages company property, the employer may impose a fine not exceeding the equivalent of five days’ wages. - Acts Outside the Scope of Work:
If an employee commits an act outside the workplace that is unrelated to work, the employer, or the responsible manager, no penalties may be imposed. - Duplicating Penalties:
If an employee is late for work and a fine is imposed, the employer cannot penalize the employee again for the same tardiness by suspending them from work.
For more information on the disciplinary penalties that may be imposed on employees, you can read about disciplinary penalties on the Ministry of Human Resources website.
The Importance of Article 70:
Article 70 of the Saudi Labor Law plays a vital role in protecting employee rights and regulating disciplinary actions in the workplace. Key points highlighting its significance include:
- Protection Against Arbitrary Actions:
The article sets limits on disciplinary penalties, such as fines and suspension durations, preventing employers from imposing excessive or unjust penalties. It also specifies that violations must occur within the workplace, except for certain exceptions mentioned in the article. - Defining Penalty Limits:
The article ensures that fines do not exceed the equivalent of five days’ wages and prohibits imposing multiple penalties for the same violation. This promotes fairness and safeguards employees from undue financial burdens, ensuring their lives outside work and financial responsibilities remain unaffected.
In summary, Article 70 is important as it balances the protection of employee rights with the regulation of employer-employee relations, ensuring fairness and transparency in the workplace.
Read also: The Ministry of Labor’s Executive Regulations: Articles (42) to (54) address disciplinary actions, while Article (55) provides guidelines for employee grievances.
الأسئلة الشائعة:
Can more than one penalty be imposed for the same violation?
No, the law explicitly prohibits imposing more than one penalty for the same violation.
In what cases can a penalty be imposed for an act committed outside the workplace?
If the act is related to the work, the employer, or the responsible manager, a penalty can be imposed.
What happens if the employer exceeds the limits specified in the article?
The employee has the right to file a grievance with the company’s management to claim their rights, in accordance with Article (55) of the Labor Regulations.
