Saudi incentives to encourage licensed SMEs labour housing
Stipulations set for buildings accommodating group residences
Cairo: The Saudi government is working on a package of incentives for small and medium-scale enterprises (SMEs) to accommodate their workers in licensed group residences, according to a media report.
The initiative is being worked out by the ministries of commerce, municipalities and housing which are studying a potential incentive mechanism for SMEs to house their workers in licensed, healthy buildings, Saudi news portal Akhbar24 reported without giving specifics.
Earlier, the Ministry of Municipalities and Housing issued regulations for group housing stipulating, among other things, the necessity of obtaining official licences for residences that accommodate 20 or more persons regardless of the duration of their stay inside residential areas or on ridges of towns.
Other stipulations ban renting the roof of the building for housing, and require a sign be placed at the entrance to the residence featuring information about the company or establishment to which the employees belong.
Under no circumstances should the number of the residents exceed the capacity of the building specified in the requirements pertaining to residences, designs and technical specifications.
Saudi Arabia, a country of 32.2 million people, is home to a large community of expatriate workers. In recent years, the kingdom has stepped up efforts to regulate its labour market and make it more stable, competitive and attractive to skilled workers.
Last month, the Saudi government approved a host of substantial labour changes to preserve contractual rights. Accordingly, a notice for terminating an employment contract with non-specific duration is now put at 30 days if the notice comes from the worker, and 60 days on the employer’s side.
According to the same amendments, maternity leave has increased from 10 weeks to 12.
Furthermore, a three-day paid leave is granted to the worker in case of his/her brother’s or sister’s death.
In 2020, Saudi Arabia introduced major labour reforms, drastically improving its sponsorship system.
The reforms, which went into effect in the ensuing year, allow job mobility and regulate the exit and re-entry visa issuance for expatriate workers without employers’ approval.