An employer can have approved internal work regulations and still struggle to defend a salary deduction. A vague disciplinary clause, or a penalty imposed without a documented investigation, may undermine the decision. Workplace rules must be clear, comply with the Saudi Labor Law, and be communicated to employees. This article examines drafting mistakes that expose businesses to disputes, the Qiwa approval requirements, clauses needing particular care, and how to keep the regulations legally fit for use.
What Are Internal Work Regulations, and Why Do They Matter?
Internal work regulations, termed work regulations under Saudi law, govern attendance, leave, duties, and discipline under the Labor Law and its Implementing Regulations.
Unlike individual employment contracts, they apply across the establishment. They also differ from the ministry’s schedule of violations and penalties for employers, giving management and staff a common reference.
For the wider context, take a look here at company regulations and legal compliance.
Drafting Mistakes That Weaken an Employer’s Legal Position
A provision in internal work regulations stating, “The company may deduct whatever it considers appropriate for any violation,” leaves the sanction undefined and overlooks statutory restrictions.
| Drafting mistake | Legal weakness | Better approach |
| Unrestricted discretion over sanctions | No defined offense or penalty | Match violations to lawful penalties |
| Two fines for one violation | Breaches disciplinary restrictions | Apply only one penalty per offense |
| No opportunity to respond | Defective disciplinary procedure | Provide for notice, investigation, and records |
| Reducing statutory leave or rights | Conflicts with the Labor Law | Verify statutory entitlements |
| “At management’s discretion” alone | No consistent application standard | Specify the conduct, authority, and procedure |
Adding “in accordance with the law” does not cure a defective clause or its application. See also Saudi Labor Law violations and penalties for the distinction between internal discipline and regulatory violations.
Requirements for Drafting Work Regulations Under Saudi Law
Article 13 requires employers, subject to ministerial exemptions, to use the Ministry of Human Resources and Social Development’s template. Additions cannot conflict with the labor law, its implementing regulations, or implementing decisions. Article 12 governs approval mechanisms.
Qiwa offers two approval routes for internal work regulations: standard and customized. Customized versions require review and attestation by a ministry-accredited law firm before approval.
Before submitting, ensure that:
- Arabic is the authoritative text if another language is provided alongside it.
- No clause reduces statutory rights or exceeds disciplinary limits.
- Additional provisions suit the establishment and its approval route.
- Regulations and amendments are displayed or communicated so employees know their contents.
Official approval does not remove the duty to inform employees of the regulations or amendments.
Clauses That Require Particular Legal Precision
Disciplinary clauses need special attention because they affect pay and employment status.
- Attendance: Set working hours, breaks, evidence of lateness, and applicable overtime rules.
- Pay and leave: Explain administration without reducing statutory entitlements or more favorable contractual benefits.
- Misconduct: Follow Article 66’s sanctions; Article 67 prohibits penalties absent from the law or work regulations.
- Investigation and grievances: Provide for written notice, the employee’s defence, an investigation record, the penalty decision, and grievance procedures under Articles 71 and 72.
Article 70 prohibits multiple penalties for one violation and caps an individual fine at five days’ wages, alongside other limits. Article 69 sets deadlines for allegations and sanctions.
How Do the Regulations Protect Employers and Employees?
Internal work regulations protect both parties when documented procedures support clear rules. If an employee disputes a deduction for lateness, the employer should be able to produce the published clause, attendance record, investigation minutes, and penalty decision.
The regulations must align with contracts without removing statutory rights or more favorable benefits. Check the article about employment contracts in Saudi Arabia for the distinction between them.
The Legal Adviser’s Role in Drafting Internal Work Regulations
- Counsel examines actual operations first: shifts, leave approvals, responsibility for investigations, and document retention. These practices are then expressed in legally workable clauses.
- Review also checks contracts, policies, disciplinary schedules, and approvals. Customized regulations require a ministry-accredited law firm; a legal adviser is not automatically accredited.
When Might a Labor Court Disregard a Provision?
- A labor court may decline to uphold a clause that conflicts with a mandatory statutory provision or a sanction imposed without the required evidence and procedure.
- Article 8 renders terms contrary to the Labor Law void, subject to provisions more favorable to the employee.
- Describing dismissal as “gross misconduct” does not itself justify termination without end-of-service benefits, notice, or compensation. Article 80 governs the permitted grounds. Likewise, a listed penalty cannot replace notice, investigation, and the opportunity to respond required by Article 71.
- Ministry rejection during approval differs from judicial non-enforcement in a labor dispute.
For further context, check this article: termination without a legitimate reason and employee compensation.
Reviewing and Updating Work Regulations to Prevent Labor Disputes
- Review internal work regulations when the law, shift arrangements, benefits, or disciplinary practices change, or a clause repeatedly attracts objections.
- Compare the approved version with actual practice, identify amendments, complete the relevant approval process, and communicate the updated text to employees.
- Retain versions and approval/publication records to establish the rules applicable to an incident.
The strength of workplace regulations is tested when a decision must be justified, not by their length. Legal review helps correct conflicting clauses and disciplinary procedures. Sadalaw Legal Consultancy drafts and reviews work regulations and assists with the Saudi approval process.
Send Sadalaw your workplace regulations for a legal review and identify the changes needed before approval or implementation.
FAQs About Work Regulations in Saudi Arabia
Standard regulations use the model route; customized versions allow tailored terms but require review and attestation by a ministry-accredited law firm.
Article 13 requires prominent workplace publication or another means to ensure affected employees know their contents.
Article 72 allows a written internal grievance within 30 days of notification, excluding official holidays. If rejected or unanswered in writing within 15 days, the employee may appeal to the Labor Court within 30 days, excluding official holidays, under the article’s calculation rules.
Article 9 makes the Arabic text authoritative where another language accompanies it.
Stop relying on it for new decisions; legally review the clause and affected actions, then complete the necessary amendment, approval, and employee-notification steps.
