The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:
The documented contract is an executive deed
The initiative of “the documented employment contract is an executive deed” is launched according to the specialization of the ministry of human resources and social development for regulating and protecting the labor relationships, in cooperation with the ministry of justice, that initiative will result in acquiring the documented employment contract at “Qiwa” website shall represent an executive deed according to the related laws.
Upon that initiative, the salary article which is stated in the contract- that includes the basic salary, the housing allowance and the transport allowance, in addition to other cash allowances- if found- shall represent an enforceable undertaking, that obliges the employee to file an execution application directly through Najez website, without the requirement of filing a labor claim or filing additional documents, when it affirmed that the employer violates the payment undertaking.
The violation is affirmed in a case of 30 days pass from the due date for the entire salary payment without paying it, or a passing of 90 days in a case of partial payment, while the payment shall be verified electronically through the technical link of “mudad” website which is approved for salaries management and the salaries protection program. For benefiting from the executive form, the court should be documented at Qiwa website according to the unified executive employment contract and the issuance of an executive number for the contract through the documentation website at the ministry of justice. The employer may object it or pay the salary in five days from the date of the enforcement application acceptance.
That initiative is a binding regulatory tool for the fast payment of salaries, and the enforceability of the contracting justice principle, in addition to the protection of labor rights, according to the objectives of the Saudi Vision 2030, for development and stability of job market.
Saudi Central Bank prohibits request for enforcement of promissory note when financing credit cards of individuals
Saudi Central Bank (SAMA) issues an official generalization that obliges finance authorities to stop requesting enforcement of promissory note or any commercial notes from individual customers at providing credit cards finance production, according to its supervisory and control role at the financial sector.
The Central Bank explains that the generalization is issued upon the authorizations granted to it according to the Saudi Central Bank system, banks control system, finance companies control system, in reference to the instructions for dealing with request for promissory note, in addition to the responsible finance principles for individuals, after observing the spread of irregular practices which are represented in the condition for having request of promissory note of customers, at granting credit cards finance.
The generalization asserts that finance authorities should undertake with all related laws and instructions, and should update their policies, procedures, and internal controls that ensure not demanding any irregular commercial guaranties at presenting that financial product.
The Central Bank points out that this direction shall be enforceable from 1st February, 2026, while obliging financial authorities to provide it, through the department of customer protection supervision, with a plan for correcting the present situations not later than (30) thirty days from the generalization date, while the plan should include- at minimum- returning or terminating request of promissory notes or commercial notes which have been previously attained from individual customers, that contradict the generalization.
Also, the generalization asserts that the plan for situation correction shouldn’t be exceed six months from the date of the generalization issuance, asserting that in a case of failure to undertake with its content, the authority shall be exposed to disciplining according to the applicable laws and instructions.
Approving Sport Law Draft
Royal bylaw number (M/121) is issued on 10-06-1447H to approve the draft of the sport law, that represents a critical regulative step that aims at developing the sport sector, and raising its competence, in addition to reinforcing the principles of governance, and adapting a regulative environment that attracts investment according to the targets of the economic development and the KSA Vision 2030.
The sports law represents a comprehensive legal framework that regulates varied sport identities, reinforces the concepts of professionalism and financial sustainability, and ensures rights protections at the sports system. The law establishes a group of essential legal principles that aim at regulating and upgrading the sports sector.
The law defines the sport identities which are governed by its rules, and which are represented in the Olympic and Paralympic Saudi Committee, sport federations, sport clubs, and links, asserting the independence of sport federations as non-governmental identities which enjoy the legal identity and financial and administrative independence. It is the concerned authority with managing and regulating its sport in the KSA according to the approved regulations and rules. Also, the law permits the clubs and the sport links to be transformed from non-profitable identities to sport companies, according to defined regulations that include registering the company and its articles of association at the national register of sport, undertaking with the minimum capital and undertaking with the regulations for foreign partner or investor participation. This direction represents a critical step towards privatization of the sport sector, reinforcing investment attractiveness and raising the level of competitiveness and financial sustainability.
For protecting human resources at the sport sector, the law obliges the ministry of sport in coordination with the public authority for social insurance and the insurance authority to register the players, the trainers and the employees at the sport sector, and providing the suitable insurance coverage to them. Also, the law regulates rights and liabilities of professional players and trainers that contribute in providing a stable and professional work environment at the sport system. For discipline and dispute resolution, the law reinforces sport justice and discipline through approving the Saudi Sport Arbitration Center which is a specialized authority for deliberating and resolving sport disputes, in addition to regulating violations and sanctions which may include financial sanctions, halting, or license termination, that reinforces compliance and transparency in the sport sector.
For the stage of complete compliance, the law obliges all individuals and identities governed by its rules to correct their situations according to its rules in one year from its enforceability law, while that period can be extended by a decree from the minister of sport. The first regulative step which is required from sport clubs, is to revise their legal and organizational positions, and evaluate the extent of their internal regulations and bylaws agreement with the new sport law, in addition to commencing restructuring and reorganizing them, and commercial transformation- when required- to ensure complete compliance before the completion of the situation correction term, and using the investment opportunities which are provided by the law.
Legal Information:
Taking the oath of legal identities
Legal identity- such as companies, foundations, associations and governmental authorities- are treated as an independent identity from natural identities that are in charge of them.
The oath can be directed to the legal identity through its legal representative or the one who manages the disputed work, as the legal identity doesn’t give the oath itself. The oath isn’t directed to the governmental authorities, as they represent the public interests, but it is enough to provide official documents and evidence.
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