Employee Handbook Generator Saudi Arabia
Key Policies
Purpose
This handbook outlines the human resources policies and procedures of the Company in alignment with Saudi Labor Laws, intended for all employees working in the Kingdom of Saudi Arabia.
HR Mission Statement
To support the Company's vision by recognizing employees as our most valuable resource, providing tools, training, and fair policies that foster an environment of safety, development, and equal opportunity.
Responsibilities
HR is responsible for compliance, recruitment planning, responding to inquiries, maintaining employee files, and enforcing policies.
Job Descriptions (HR01)
This policy governs the process of creating and modifying Job Descriptions (JDs) for all positions within the Company. All roles must have a standardized, approved job description developed jointly by line managers and the Human Resources Department. JDs serve as a basis for classification, staff selection, performance review, and ensure compliance with legislative and procedural requirements. They are regularly reviewed and updated to reflect changes in position requirements.
Recruitment (HR02)
The Company is committed to maintaining a high level of integrity and fairness in its recruitment process, operating as an equal opportunity employer and selecting candidates solely on the basis of merit. Priority is given to Saudi Nationals (Saudization). The process includes manpower planning, addressing special needs (e.g., for disabled individuals), adhering to specific recruitment criteria (e.g., minimum age 18, medical tests, background checks), candidate sourcing through various channels, and a structured screening and interview process. Conditions of employment and hiring rates are clearly defined, and new employees undergo an onboarding process.
Compensation & Benefits (HR03)
The Company maintains employee compensation and benefits at a competitive level to attract and retain qualified staff, aligning with relevant market standards and Saudi legal requirements. Compensation includes a monthly basic salary (paid in SAR) and various allowances. Allowances typically include:
- Housing Allowance: 25% of monthly basic salary (unless company accommodation provided).
- Transportation Allowance: 10% of monthly basic salary (unless company vehicle/transport provided).
- Mobile Allowance: Fixed amounts for Executive and Middle Management (SR.300 and SR.200 respectively); other levels up to SR.100 with justification.
Benefits include an annual economy airline ticket for expatriate employees and eligible family (after 12 months continuous employment) and comprehensive medical insurance for employees and their eligible families.
Payroll (HR04)
The Company is committed to providing employees with accurate and timely payroll. Payroll and related benefits are calculated from the day of joining based on the Gregorian calendar. For new hires during a partial month, salary is paid pro-rata. The payroll cutoff date is the 20th of each month, with processing and crediting to employee accounts on the 29th (or previous business day if the 29th falls on a Friday or Saturday). All payroll data is strictly confidential.
Probationary Period (HR05)
Newly hired full-time employees are subject to a probationary period. This period shall not exceed ninety (90) calendar days, but may be extended to one hundred and eighty (180) calendar days as stipulated in the employment contract. Public holidays and sick leaves are not included. During this period, employee performance is closely monitored. If the employee fails to meet job requirements, employment may be terminated without advance notification or indemnity as per Saudi Labor Law. A second probation is allowed only in specific circumstances (e.g., change of profession within the Company or return after six months).
Work Schedule (HR06)
Company employees are generally required to work forty-eight (48) hours per week or eight (8) hours per day, with weekly weekends on Friday and Saturday. Employees are required to record their time of arrival and departure. During the month of Ramadan, working hours are reduced to thirty (30) hours per week (six hours per day) in accordance with Saudi Labor Law. A one-hour lunch break is observed, and Muslim employees are allowed reasonable time for prayers. Excessive absenteeism or unexcused absences may lead to corrective action.
Overtime (HR07)
Overtime compensation is provided to eligible full-time employees who work beyond the standard eight (8) daily or forty-eight (48) weekly hours. Overtime must be pre-approved by the department manager and justified, and it generally should not exceed forty (40) hours in a month. During Ramadan, overtime is beyond six (6) daily or thirty-six (36) weekly hours. Employees on probation or business travel are not entitled to overtime. Overtime is calculated at 1.5 times the basic salary for regular workdays and 2 times for weekends and public holidays.
End of Service (HR08)
This policy sets guidelines for the conclusion of an employment relationship, covering various circumstances such as resignation, poor performance, position elimination, contract expiry, health reasons, retirement, death, and government reasons. Termination for cause may occur without advance notice or indemnity in cases of serious misconduct as defined by Saudi Labor Law (e.g., assault, fraud, theft, breach of confidentiality). End of Service Awards (indemnity) are calculated based on service duration and salary components, with specific percentages and conditions for eligibility. An experience certificate is provided upon final settlement, and all procedures are treated with confidentiality.
Corrective Actions (HR09)
The Company maintains a policy of corrective actions to ensure employee commitment and adherence to internal regulations and Saudi labor laws. Any violation reported will be investigated promptly. Formal corrective actions involve investigation, an interview with the employee, and an evaluation of the severity of the problem. Penalties are imposed in accordance with Saudi Labor Law, ranging from warning letters to termination for repeated breaches or serious misconduct (e.g., theft, fraud, assault, gross negligence). All corrective actions are documented and kept confidential.
Grievance Policy (HR10)
This policy provides a structured protocol for employees to raise and resolve grievances, complaints, and disputes, aiming for resolution at the earliest possible stage. Employees are encouraged to first discuss issues with their immediate department manager. If unresolved, the complaint can be escalated in writing to the HR Manager (Stage 2) and, if still necessary, to the CEO (Stage 3). The Company aims for timely and objective responses, and no employee will suffer unfair treatment for presenting a grievance. Malicious or intentionally insulting grievances will be subject to severe action.
Code of Conduct (HR11)
The Company promotes a climate of openness and fairness while upholding the highest standards of conduct and ethical behavior. Key areas covered include communication and consultation, Company and employee obligations (e.g., declaring gifts, professional representation), conflict of interest, business ethics (prohibiting false entries, bribery, and unauthorized disclosure of confidential information), sexual harassment (zero-tolerance policy), smoking (smoke-free environment with designated areas), and a professional dress code that adheres to Saudi Islamic culture (e.g., Abaya for women). Violations of this code may lead to disciplinary action, including dismissal.
Leave Types (HR12)
This policy describes the conditions under which all full-time employees are eligible for various types of leaves in accordance with Saudi Labor Law:
- Annual Leave: 21 calendar days after one year of service, increasing to 30 days after five continuous years. Must be pre-approved and taken to suit operational requirements. Unused leave can be carried over for 90 days into the next year.
- Emergency Leave: Up to 10 working days per year, subject to CEO approval.
- Exam Leave: Paid leave for unrepeated year examinations (with approval); unpaid for repeated years.
- Hajj Leave: Up to 15 calendar days for Muslim employees (after two years of service) to perform Hajj.
- Other Paid Leave: Includes Marriage (5 days), Paternity (3 days), Relatives’ Death (as per law), and Maternity Leave (as per law).
- Sick Leave (Non-Work Related): Entitlement as per Saudi Labor Law: full pay for first 30 days, 75% for next 60 days, 0% for next 30 days in a single year, requiring a certified medical report.
- Official Public Holidays: Includes Eid Al-Fitr (4 days), Eid Al-Adha (4 days), National Day (1 day), and Founding Day (1 day). If required to work, they will be compensated as per the Saudi Labor law.
Business Travel (HR13)
This policy describes the guidelines for official business and training travel outside the employee's base area. The Company covers the cost of airline tickets (class determined by career level), exit re-entry visas for expatriates, and foreign country visas. Employees receive a daily per diem rate for the duration of their travel, covering accommodation, food, transportation, and incidental expenses. Per diem rates vary by career level and geographical location. Business travel is subject to prior CEO approval, and travel and health insurance are covered by the Company.
Confidential Record Keeping (HR14)
This policy ensures that all employee records are kept confidential and are compliant with local laws and regulations. Employee records (including benefits, training history, performance reviews, disciplinary actions, compensation history) are diligently maintained and regularly updated. Databases holding sensitive information are password-protected and restricted to authorized personnel. Physical personnel files are also confidential, stored securely, and maintained in accordance with organizational policy and current legislation.
Stress at Work (HR15)
This policy aims to protect the health, safety, and welfare of employees and promote a positive work environment by recognizing and addressing work-related stress. The HR department and senior management are mindful of staff's physical and and psychological well-being. Best practices include providing access to an Employee Assistance Program (EAP) for confidential professional counseling, promoting mindfulness and wellness initiatives, conducting psychological briefings, implementing coaching/mentoring programs, and training managers to identify signs of stress. Comprehensive briefings on wellbeing are also provided for staff.
Whistleblowing (HR16)
This policy enables employees to raise concerns internally about malpractice or impropriety, offering protection for disclosures made in good faith. Covered concerns include financial malpractice, legal non-compliance, health & safety dangers, criminal activity, improper conduct, and attempts to conceal such issues. Disclosures are treated confidentially, and anonymous allegations are considered at the Company's discretion. The policy outlines a procedure for making disclosures to a designated investigating officer, with a right to escalate if concerns are not properly addressed. If criminal activity is evidenced, the police will be informed.
Use of Email & Instant Messaging (HR17)
This policy describes the guidelines for the usage of the Company's Information Technology (IT) resources, including computer equipment, email, intranet, and internet systems. All IT resources are Company property, and personal use is limited. Messages sent/received are official Company records. The policy strictly prohibits disruptive, offensive, illegal, or harassing content. It also covers email good practices, responsible use of social media (even in a personal capacity, if associated with the Company), and states that monitoring of IT resources may occur. Breaches of this policy may lead to corrective action, including termination of employment.
Health & Safety (HR18)
This policy ensures the protection of all individuals (employees, contractors, partners, vendors, clients, and public) and demonstrates the Company's commitment to maintaining a safe and healthy work environment. This includes conducting annual safety audits to examine performance against established standards, ensuring contractors adhere to high health and safety standards, and implementing comprehensive emergency planning. Emergency plans cover both internal (e.g., fire, medical emergencies) and external (e.g., civil disturbance, floods) situations, with defined alarm systems, assembly points, and regular training for wardens and all employees.
Work from Home (HR19)
The Company may offer employees the opportunity to work remotely, subject to the nature of their work and departmental approval. This policy defines expectations, responsibilities, eligibility, and guidelines for home-based work. It requires a formal "Working from Home Agreement" for periods exceeding 12 days in three months, detailing work location, hours, communication, and security of Company materials and equipment. Health & Safety assessments of the home-based office are required. Employees are responsible for managing family responsibilities to meet their employment obligations successfully while working remotely.
Administration
The Employee Handbook is reviewed every 3 years or as needed, with revisions approved by the Human Resources Department and the CEO/Board of Directors.
Access and Compliance
Employees must comply with this handbook. Any questions should be directed to the HR department.
Note: Full details and templates (e.g., job descriptions, leave forms) are available internally via HR.
Purpose of the Employee Handbook
Who Benefits from the Employee Handbook
- HR Managers
- HR Staff
- Employees
- Department Managers
- Small and Medium Businesses
Key Features
- Time Saving: It reduces the time and effort required to create an employee handbook from scratch.
- Consistency: It ensures consistency in policy language and formatting.
- Compliance Assurance: It ensures that HR policies adhere to Saudi legal requirements, helping organizations comply with the labor laws.
- Accessibility: Its user-friendly interface makes it accessible to HR professionals and business owners with various levels of expertise.