Book an appointment with us, or search the directory to find the right lawyer for you directly through the app.
Find out moreWe are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.
Read the full editionPaul Saba
Essentially the agency is a funded through payments from both the employer and the employee. Under law NO. 61. of 1976 ( the “Social Insurance Law”), the employer must register its new employee within 10 days of employment. Upon registration, the employee and the employer are to pay a certain percentage of the employee salary into the PIFFS fund.
In addition to the PIFSS system, Kuwait has also created the Manpower and Government Restructuring program (“MGRP”) to ensure the continued welfare for citizen employed in the private sector. The MGRP essentially provides a citizen with a monthly supplement to his or her salary and the amount depends on the educational background of the citizen: the higher the education, the higher the supplement.
As disused above, the employer is obligated to register the employee with PIFFS; however the same is not true for the MGRP. In fact, it is the Employees responsibility to register himself, or herself, with the MGRP.
Although the employer may fail to register the employee, the social insurance Law provides an avenue to the employee to register himself or herself with PIFFS in the event the employer fails to do so. Thus, the employee cannot claim that due to the employer’s failure to register he or she with PIFFS has detrimentally affected his/her entitlements under the MGRP program.
It should be worth noting that larger companies, though required to register an employee within 10 days of employment, do so periodically throughout the year for efficiency purposes. The employer, who files a late registration, pays a nominal fee.
Given this common practice, an awareness campaign should be considered for the employees of a company to inform them of the employee’s right to register themselves with PIFFS so to avoid any possible delay to MGRP benefits. Lastly, to a certain extent, an employee is able to retroactively register himself with PIFFS and thus receive retroactive payments from MGRP; however, there are deadlines which must be followed.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.