An Analysis of Saudi Labor Law and the Exclusion of Farm Workers

This research report examines the application of Saudi Arabian labor law, specifically focusing on the advantages and disadvantages of excluding workers on small farms, particularly those in the agricultural sector. The report provides an overview of the legal framework in Saudi Arabia, highlighting the importance of employment laws for worker protection, including discussions around wages, working conditions, and employee rights. The report analyzes the potential benefits of excluding small farms from labor laws, such as reduced administrative burdens and increased flexibility for employers. However, the report emphasizes the disadvantages, including the potential for exploitation, lack of legal recourse for workers, and the overall illegality of non-compliance with Saudi labor regulations. The report concludes that adhering to labor laws is essential for ensuring fair treatment and ethical practices within the agricultural sector, even on small farms. It also presents the legal scenario with the employment laws, findings, and conclusion to support the research topic.

Research project
Suadi Arabian Labor Law
SystemJP

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Contents
Introduction...........................................................................................................................................2
Aim of the research...............................................................................................................................2
Discussion.............................................................................................................................................3
Advantages........................................................................................................................................3
Disadvantages....................................................................................................................................4
Legal scenario with the employment laws.............................................................................................6
Findings & Conclusion..........................................................................................................................6
References.............................................................................................................................................7

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Introduction
The objective of this research assignment is to deliver the most relevant information about the
importance of employment laws in each sector of the Saudi Arabia and special emphasis of
this research is on the workers engaged in the field of agriculture and small or domestic
farms. This report will be based on the detailed discussion about the question
“What are some advantages and disadvantages of excluding workers on small farms from
the Saudi labour law?”
This question requires detailed analysis of the legislative emphasis of the labour laws in an
organisation and impact of including or excluding a worker of small farm in it. Saudi Arabia
is a country in western Asia recognised as kingdom of Saudi Arabia it is the largest sovereign
state geographically covering the 2, 150, 000 km2 of the land in western Asia. It is a hub of
employment for the daily wages workers and many employees in the construction,
agriculture, and production centre. This report discusses the effect of the labour laws on the
agriculture workers, including local and migrated workers in the discussion.
Aim of the research
Research in the Human resource management concept relate to discuss about the code of
conduct an organisation follows and implication of the labour laws related to security, safety,
compensation and many other facilities for the employees. Agriculture in the Saudi Arabia is
developing continuously, climate challenges to the agriculture is solved with the organic
farming technique, now Saudi Arabia has sufficient production of the food as it wheat,
pulses, vegetables and fruits in agriculture and livestock agriculture of meat, milk and egg
exporting quality meat and eggs out in the neighbour countries (Clyde & Co LLP;, 2016).
This development of the agriculture result increased in the economic stability and

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employment in the commercial and domestic both sector. Important point of this report aims
to discuss the small firm employs role in the labour law (Bayern, 2016).
Discussion
Article 5 of the Saudi Arabian Labor law 1426, define the application of the labour laws
rules, regulation, and act in the workers engaged in the agreement of working in the exchange
of wages. It is equally applicable on all size firms in every sector of the employment. The
question this report discus the advantages and disadvantages of excluding the small farm
labours as its farmers from the labour law (Alkhaldi, 2015). Hence, detailed discussion about
the advantages and disadvantages of avoiding Labor law is represented below-
Advantages
Advantages associated with exclusion of the workers frim the labour law are temporary and
not acceptable as legal advantages in the eyes of law. Saudi Arabia follows the Holy Quran
and Sunnah of the Prophet Muhammad (PBUH), in form of Sharia Law, which itself allows
the equal work opportunity to all in exchanges of the benefits. Some advantages to the small
farm organisation by the ignorance of the labour law can be disused as;
 Responsibility- Responsibility of an employer towards the employees and workers
become flexible in nature, hiring authority has all rights over the hired people
regarding their duty timing, wages, and leaves. They are not responsible to maintain
the secure and healthy environment for the workers and they are not liable to pay the
compensation to the government in firm if the tax (Atim, 2018). They earn all the
benefits and use in as their accordance.
 Formality- According to the article 4, 5 and 6 of Saudi Labor Law 1426, implies
regulation about the workers hiring, agreement, and conditions regarding

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employment. In case of avoiding Labor law organisation enjoys freedom form the
formalities of documenting and hiring procedure
 Free to hire migrated worker or local workers according to their suitability and not
risk issuing work permit or licencing to the migrated worker as legal document of
their identity of wags earning proof (Stone & Devenney, 2017).
 Easy conflicts resolution- small farms has no large number of employees hence they
face less conflicts among the employees, and they take no responsibility to handle the
issues of conflicts as their priority but the employees are free to solve the issues in
their accordance and has no punishment policies for the conflicts (Alzu'be, 2012).
 Financial and wages benefits- financial compensation and wages for the work is
right of the employees according to the article 25 of Labor law, but if a farm is not
applying the labour law than the authority is free from the responsibility regarding the
paying benefits and wages. According to the law and thy can pay their employees and
workers according their policies and can maximize the profit.
 Leaves policy benefits- leaves are right of an employee, and a labour is allowed to
work only for 8 hours in a day, in case of inapplicability, employees are free to
perform their task according their time and farms are free to use their human
resources as their need and demand of the market (Baig, 2014).
Disadvantages
Arraignment of the organisational operation in any firm is challenging for the management,
employees also face issue in the job application without any regulations, and laws related to
their safety and health during their employment (Preis Jr & Moyed, 1987). According the
Sharia law employees and workers have ethical and legal right to get wages, leaves and many
other benefits from the organisation but in case of the lack of labour laws both employees

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and management face issues to cope up with the effective working in any industry. Some of
the big challenges or disadvantages are below;
 Illegal image- Any industry working without implication of Labor laws have illegal
identity in the market and all its operations are assumed to be non-profitable to the
government hence they are fully illegal according the trade relations and labour laws
of the country.
 Threat for the future issues- future of the employees working without Labor laws
rights and responsibilities, have no right to claim organisation for the wages and
compensation, government is authorised to seize this kind of farms for unlimited
period hence future of such farms and workers is very risky.
 Employee issues- Lack of employee duties and responsibilities free them to work
according their wish and hiring of the migrated workers without permitting and
licensing cause employee conflicts to the organisation, leading the other issues to the
management (Swanson, 2015).
 Issues with the competitors- Small farms handle agriculture activities have high risk
with the competitors; legal implication of employees’ laws in the competitors can
attract the employees and can result in the high employee turnover. Human resources
are important resources in the farms and agriculture high turnover will result loss to
the earning.
 Financial issues- Wages are legal right but lack of effective and foxed compensation
policies allows workers to demand wages and other benefits from the organisation as
per their need, in case of unavailability of the wages employees can take any action
against the farm managers and this lead the financial instability and economic
challenges to the farm (Alzu'be, 2012).

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Legal scenario with the employment laws
Saudi Arabia Follows the strict laws related to employment and labour welfare, its precedent,
and judicial decision are important part of the laws, it has separate regulations for the workers
local from the country and for those who came as migrants. However, legal duties of an
organisation are same for the hiring and wages regulation. For example, Saudi Arabia has a
law related to labour welfare (Labour, 1426). This law order the firms to prohibit use of
employees in direct sunlight, from 12:00 noon until 03:00 before sunset. The ministry of
Labor and social development regulate and announce ban for the three month in mid-day
outwork. This rule is part of the labour welfare laws equally applicable for the migrant and
local workers. Hence, implication of the Labor Law is essential and equally applicable for the
all working in an organisation.
Findings & Conclusion
This report represents the importance of labour and employment laws in a small farm,
engaged in the agriculture activities in the Saudi Arabia. Research and findings of this report
are targeted to find the answer of a research title; “What are some advantages and
disadvantages of excluding workers on small farms from the Saudi labour law?” In addition,
based on the above discussion this reports concludes that operation with the employees
without implication of legal regulations of the country is very challenging for the
organisation and it is not acceptable by the government of the country. Saudi Arabian law
define small farms with minimum number of 8-10 employees and law of Labor Laws Saudi
Arabia 1426 is equally applicable in this farm. Hence, the government does not allow
operation without legal processing and punishment for such operation falls under the fraud
punishment to the organisation.

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References
Alkhaldi, B. A. (2015). The road towards globalization and stability in the Saudi Arabia’s
economy. European journal of economics and management sciences, 4.
Alzu'be, A. F. (2012). The quality of saudi graduates and the needs of saudi labor market.
Update, 23-25.
Atim, Z. A. (2018). Acts Affecting the Safety of Civil Aviation in Saudi. Open Journal of
Social Sciences, 156-166.
Baig, M. B. (2014). Sustainable Agriculture and Rural Development in the Kingdom of Saudi
Arabia: Implications for Agricultural Extension and Educatio. In G. Straquadine,
Climate Change and Fisheries in Chile (pp. 101-116).
Bayern, S. (2016). Offer and Acceptance in Modern Contract Law. California Law Review,
103.
Clyde & Co LLP;. (2016, June 20). Employment & labour law in Saudi Arabia. Retrieved
February 12, 2020, from Lexology: https://www.lexology.com/library/detail.aspx?
g=6ba28ace-2bcf-49a7-9cba-98b08a8ff5a6
Labour, L. (1426). LABOR LAW. Retrieved February 12, 2020, from mlsd.gov.sa:
https://mlsd.gov.sa/sites/default/files/LABOR%20LAW.pdf
Preis Jr, E. F., & Moyed, R. M. (1987). Employment and Labor Law. Loy. L. Rev, 715.
Stone, R., & Devenney, J. (2017). The modern law of contract. Abingdon: Routledge.
Swanson, A. (2015, May 21). An incredible image shows how powerful countries are buying
up much of the world’s land. Retrieved February 12, 2020, from The Washington

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Post: https://www.washingtonpost.com/news/wonk/wp/2015/05/21/rich-countries-are-
buying-up-farmland-from-poorer-ones-around-the-world/