Compliance and Regulations

Human Capital Resources Compliance and Regulations

Aligned with KSA Labor Laws, Saudization (Nitaqat), Mega Project Frameworks, and International HR Best Practices

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1. Introduction

The Human Capital Resources (HCR) Compliance and Regulations Framework at BEC Arabia ensures full adherence to KSA labor laws, Saudization (Nitaqat) requirements, ISO HR standards, and global best practices. These regulations are critical for ensuring legal compliance, fair labor practices, employee rights, and corporate governance in a mega construction environment.

The framework provides a structured approach to labor law compliance, workforce regulatory requirements, employee welfare, dispute resolution, and corporate responsibility.

📂 Stored in SharePoint – HCR Compliance and Regulations

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2. Key Regulatory Authorities Governing Human Capital Management

BEC Arabia adheres to the labor and HR regulations set by multiple Saudi governmental entities, including:

Regulatory Authority	Applicable Regulations	Key Compliance Requirements
Ministry of Human Resources and Social Development (MHRSD)	Saudi Labor Law	Employment contracts, work permits, Saudization, employee rights
General Organization for Social Insurance (GOSI)	Social Security Law	Employee pension contributions, work injury compensation
Saudi Contractors Authority (SCA)	Construction Workforce Regulations	Compliance with construction workforce safety and employment guidelines
Saudization (Nitaqat) Program	Nationalization of Workforce	Ensuring the required percentage of Saudi employees in all business sectors
General Authority of Zakat and Tax (GAZT)	Payroll and Tax Compliance	Payroll tax compliance, end-of-service benefits calculations
ISO 9001 & ISO 45001	HR Quality & Occupational Safety	Documented HR procedures, employee health & safety compliance

📂 Stored in SharePoint – HCR Regulatory Compliance Guide

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3. Employment Compliance and Labor Law Adherence

3.1 Employment Contract Compliance

All employment contracts at BEC Arabia must adhere to the KSA Labor Law and include:

• Employee and employer obligations

• Salary, benefits, and working hours

• Contract renewal and termination clauses

• Disciplinary action and grievance handling

• Mandatory probation period (3 to 6 months)

📂 Stored in SharePoint – Employment Contract Compliance

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3.2 Work Permits and Iqama Compliance

All expatriate employees must have a valid work visa and Iqama (residency permit), with compliance monitored through MHRSD’s Qiwa and Muqeem systems.

Key Compliance Actions:

• Iqama renewals must be processed before expiry

• Visa sponsorship regulations must be followed

• Employment transfer policies must comply with labor mobility laws

📂 Stored in SharePoint – Iqama & Work Permit Compliance

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3.3 Saudization (Nitaqat) Compliance

BEC Arabia must meet the Saudization (Nitaqat) workforce quotas mandated by the Saudi government.

Key Compliance Requirements:

• Maintain the required percentage of Saudi employees in the company’s workforce

• Provide career development and training programs for Saudi nationals

• Submit Saudization compliance reports to MHRSD

📂 Stored in SharePoint – Saudization Compliance Guide

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4. Compensation, Payroll, and Benefits Compliance

4.1 Wage Protection System (WPS) Compliance

All salaries at BEC Arabia must be processed through WPS (Wage Protection System) to ensure transparency and legal compliance.

Key Compliance Actions:

• Salaries must be processed through registered bank accounts

• Payroll records must be reported to MHRSD monthly

• Salary disputes must be resolved within 30 days

📂 Stored in SharePoint – WPS Compliance Guide

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4.2 End-of-Service Benefits (ESB) Compliance

All employees are entitled to end-of-service gratuity payments based on KSA labor law calculations.

Key Compliance Requirements:

• ESB must be calculated based on years of service

• Accurate ESB payments must be processed at contract termination

• Legal penalties apply for delayed payments

📂 Stored in SharePoint – ESB Compliance Policy

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5. Workplace Rights, Safety, and Employee Welfare

5.1 Employee Work Hours and Leave Compliance

• Standard working hours: 48 hours per week

• Overtime must be compensated per Saudi labor law

• Annual leave entitlement: 30 days paid leave per year

• Sick leave entitlement: Up to 90 days (fully paid, partially paid, and unpaid)

📂 Stored in SharePoint – Leave and Attendance Compliance

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5.2 Occupational Health and Safety (OHS) Compliance

BEC Arabia complies with ISO 45001 for workplace safety, ensuring:

• HSE (Health, Safety & Environment) training for all employees

• Workplace risk assessments and safety inspections

• Proper reporting and investigation of workplace accidents

📂 Stored in SharePoint – Occupational Safety Policy

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5.3 Employee Grievance and Dispute Resolution Compliance

• Formal grievance reporting system must be in place

• HR must resolve disputes within 7 business days

• Mediation and arbitration procedures must comply with Saudi labor law

📂 Stored in SharePoint – Grievance and Dispute Resolution Guide

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6. HR Regulatory Audits and Risk Management

6.1 Internal and External HR Audits

BEC Arabia conducts quarterly internal HR audits and undergoes annual external labor inspections.

Key Audit Areas:

• Employee records and compliance documentation

• Payroll and WPS adherence

• Health and safety compliance reports

📂 Stored in SharePoint – HR Audit Reports

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6.2 HR Risk Management and Legal Compliance

BEC Arabia maintains an HR Compliance Risk Register to track and mitigate risks.

Risk Category	Potential Risk	Mitigation Strategy
Employment Compliance	Violation of KSA labor law	Regular HR audits and policy updates
Payroll Compliance	Delay in salary payments	Strict WPS adherence
Safety Compliance	Workplace accidents	Mandatory safety training and risk assessments
Saudization Compliance	Non-compliance with Nitaqat quotas	Structured Saudi employee development programs

📂 Stored in SharePoint – HR Risk Management Plan

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7. Conclusion

The Human Capital Resources Compliance and Regulations Framework at BEC Arabia ensures that all HR policies, employee rights, workforce management, and legal obligations adhere to KSA labor laws, Saudization policies, and international HR best practices.

By integrating compliance monitoring, risk management, and structured HR audits, BEC Arabia maintains a legally compliant and high-performing workforce in mega construction projects.