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 Human Resources Issues the Executive Bylaw for Regulating Work Inspection and Reinforcing Rights and Safety of Facilities
Ministry of Human Resources and Social Development Issued the new executive bylaw for regulating work inspection, that aims at reinforcing the control competence and ensuring compliance with work regulations and rules, in addition to providing secure and
healthy work environment
That bylaw asserts the authorities of work inspectors to inspect the following:
Materials, machines and installations inside facilities.
Follow up the presence of protective and health conditions that ensure operation safety.
Protecting labor from risks
Conditions of the bylaw are as follows:
The inspector should be a Saudi nationality.
He should have a university degree or an experience of not less than two years.
In addition to passing the training and qualification period.
He should sign an undertaking to keep the information and date confidential before, during and after the performance of his duties.
The bylaw points out that the inspector practices his duties upon a formal accreditation card, which is issued by the ministry and is returned to it upon his service termination. It also asserts that he shall not by assigned with tasks beyond the scope of the control unless with a decree from the concerned agent, in a condition of not contradicting with his original duties.
The ministry asserts that the inspection visits shall be made according to an accurate plan that includes all parts of the facility, at the work hours without the necessity of the employer or his representative attendance. The visits shall be made upon a prior notification, except in the urgent cases. The inspection duties include inspecting records, files and documents related to the work, and the possibility of taking copies of them to verify compliance with the regulations.
The bylaw obliged the inspectors to file regular and yearly reports about the visits, to include data of employees, statistics, violations and sanctions. It asserts the necessity of coordinating with the related governmental authorities to unify the control efforts and to reinforce the performance competence.
In a case of discovering a material violation, the employer shall be notified electronically to correct it in three work days, but it a case of not responding, a report shall be made and the disciplining sanction shall be applied, while the employer or his representative shall be granted another opportunity for responding through the same period.
The bylaw is concluded by asserting that the inspection efforts aims at ensuring complete compliance with the regulations, without affecting the rights of employers or workers, while prohibiting providing any contradicting suggestions by the inspectors while they perform their control duties.
Ministry of Commerce: Allocating the Actual Beneficiary in Companies According to the Voting Rights Percentage
Ministry of commerce asserts to allocate the actual beneficiary in companies according to the voting rights percentage, even if in a case of owning a direct or a large portion of the capital.
The ministry states at a pamphlet that when a person owns 30% of the voting rights in the company, that will be considered an indicator of being an actual beneficiary, even if his capital share is less than 25%, considering him actually influential in the company’s decrees.
The ministry asserts the importance of disclosing the actual beneficiary through transparent undertakings and according to the requirements of governance. The ministry invites all investors and entrepreneur to undertake with the related regulations, and to be responsible officially in that regard. That is made according to the ministry efforts to reinforce the business environment, and to raise the standards of fairness and transparency in commercial and financial treatments, that contributes in protecting the rights and achieving stability in the private sector.
Legal Information
Cases of Commercial franchise Agreement Transfer
Commercial franchise agreement transfer is of the franchisor rights according to the commercial franchise regulations, issued by the royal bylaw number (M/22), on 9-2-1441H, where the transfer is made upon the approval of the franchisor, who shall not object unless in defined cases regulated by article number thirteen of the regulations, which include for example but not limited to:
When it is improbable that the transferee owns enough financial resources that enable him to complete the franchise agreement undertakings, on in a case of the transferee inability to complete the requirements of the transfer and the approved standards of the franchisor, or in a case that the transferee doesn’t agree- in writing- to be responsible for the undertakings of the franchisor according to the franchise agreement from the date of transfer, or in case that the franchisee fails to pay the due amounts to the franchisor or any other case defined by the regulations.
Paragraph Number (3) of Article Number (79)- BIS of the Labor Law
An employee shall not withdraw his application of resignation in a case of seven day period passes from the date of applying, also in a case the employer accepts the application before the period completion.
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