Job Discussion Forums

[bonesleet]

I was offered a contract with a private university. Everything looks good except that they said that the severance pay for the first five years would be 1/4 a month's salary and 1/2 a month's salary for five years and after. I found this Web site, which says otherwise. http://help.sap.com/saphelp_lochrsae605/helpdata/en/9e/4a2452c3309b60e10000000a44176d/content.htm "The severance award is equal to the wages for half of one month at the end of employment for each of the first five years of service, and one whole month for each subsequent year, prorated according to the time the employee worked." Unless you quit, in which case it's different: for less than 2 years, no award; for 2 to 5 successive years, 1/3 of the award; for more than 5 successive years but less than 10 years, 2/3 of the award; and for 10 successive years or more, full award. Is this Web site accurate? Am I being offered a smaller percentage because a "private" versus a "public" university doesn't have to follow these regulations? Or is there simply something wrong/Are they trying to stiff me?

[The Fifth Column]

Yup. Yer bein' stiffed. The law sez 1/2 month per year for the first five...

Strange tho, Saudis aren't known for being miserly or going back on their word on contracts.

You see, it's unislamic and goes against their basic precept of treating people decently...

[bonesleet]

Have you worked at a private university in Saudi?

[The Fifth Column]

[nomad soul]

Bonesleet:

You could certainly bring this contract "discrepancy" to the attention of the employer in hopes the "error" will be corrected. However, if that doesn't get you satisfactory results, you have a couple of options:

1) sign the contract anyway 'as is' (i.e., live with it); or
2) decline the job offer and look elsewhere.

[scot47]

End of service gratuity (what you call "severance pay") is specified in the Labour Code. Half a month's salary for five years then a month's salary for each year of serviuce. So five years service will get you 2.5 months but 6 years will get you 6 months.

This applies to all employers.

[coder]

[The Fifth Column]

[scot47]

There is often a proviso that the ceiling is SR100,000 in a final payout. Good employers (like KFUPM) get round that to the employee's advantage, by paying a chunk of the End-of-Service Benefit during the contractual term, or compensating by increasing the monthly salary.

The employers who want to stiff you are the contractors who make their money by paying you as little as possible and by charging the service-user as much as they can.

Avoid them and go for direct hire with a government university.

[bonesleet]

nomadsoul, you sum it up quite well:
1) sign the contract anyway 'as is' (i.e., live with it); or
2) decline the job offer and look elsewhere.

And coder, you make a good point: "Probably not," which means I'll be choosing option 2 if they find my astuteness unappealing.

I completed a 2-year contract in Saudi before and was appropriately paid a full month's salary, so when I was being interviewed yesterday I knew the numbers were fishy. I think I'll take nomadsoul's advice and point the "mistake" out to them and hope they "correct" it. If they take offense to that, then they're probably not worth bothering with. Those little lies and slights we have to live with add up over time until they boil over. That's been my experience at least. I remember how frustrated I was the last time I left Saudi. I'm always reminded of that feeling when I read the posts in the Saudi forum. I'm pretty happy now and not looking to be jaded again. There's no point in jumping out of the frying pan back into the fire if I can smell the burnt fish below. Thanks to everyone for the advice.

[SheikMilkShake]

Saudi labor laws say 1/2 month salary as ESB/ severance pay for each year of service.
It would be pointless to argue with them before you even stat working. what ever money/salary and bonus you will get, it will be worth it. If their contract is like that, you either have to take or leave it.
If your salary is 10,000 Riyals, ESB would be 5000 riyals for each year of service, once you complete one year or it would be pro rated. if they say 1/3 , that means you would get 3500 Riyals. Would you worry about the 1500 Riyals loss after 1 year service, or would you think about 10000 Riyals x 12 months = 12,0000 Riyals you would make in a year?

[nomad soul]

[coder]

I agree that there’s no harm in asking them (casually and diplomatically) about the severance award during the early phase of your contacts with them. You might say something like: “In my last KSA contract, I was offered……and I’m wondering why there’s such a discrepancy with what you’re offering. Perhaps an inadvertent error occurred….blah blah blah”

At the same time, it’s extremely unlikely that an “error” occurred. If they reply to you at all, it’ll be along the lines that the award offered is the same one that all their foreign contract workers get and such policy has been in place for years, something like that.

If you then bring up the Labor Code, that’s going to turn your enquiry into an accusation and you may as well kiss the job goodbye.

As I said above in my previous post on this thread, a written agreement or document or even Labor Code, is subject to the interpretation of the employer. This has been shown to be true in countless cases.

And finally, I don’t really understand why anyone would get upset about this way of doing things. Very similar approaches and attitudes exist just about everywhere on the planet, not just the ME. In some respects, Latin America, which I know very well, has an even worse reputation for its lackadaisical attitude towards adherence to the “rules and regulations”. (And if you think “wasta” rules the day in the Gulf, you ain’t ever been to Sao Paolo, La Paz, Quito or Lima.)

[The Fifth Column]

Then please to explain this (to be found as a "stickie"):

"Part two: general directives:

The Labour Law in Saudi Arabia is a balanced law that regulates all aspects of labour relations between workers and employees and applicable to all Saudi and Non-Saudi workers without discrimination."

[2buckets]

Is this something recent. I did 3 contracts in SA and got a month for each year, (back in the 90s).