Compliance and Regulations
Human Capital Resources Compliance and Regulations
Aligned with KSA Labor Laws, Saudization (Nitaqat), Mega Project Frameworks, and International HR Best Practices
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
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
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)
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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
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
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
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
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
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
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
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
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
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.
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