Flexible Time Shifts

What is the Flexible Time Shifts system?

The flexible time shifts / flexible work hours system is a legal and regulatory framework that allows employees and employers flexibility in setting work schedules, such that it does not involve the traditional full-time eight-hour workday. Under this system, pay is calculated on an hourly basis, with the aim of providing a flexible work environment that meets the needs of both employers and employees.

What is the flexible work hours system in the Kingdom of Saudi Arabia?

Under the laws and regulations in effect in the Kingdom of Saudi Arabia, a flexible work system refers to work performed by a non-employee of the employer on an hourly wage basis, provided that the worker’s hours with a single employer are less than half of the establishment’s standard working hours, and without any additional financial obligations associated with employment, such as paid leave, end-of-service benefits, or other benefits enjoyed by full-time employees.

What are the conditions and regulations governing flexible work contracts in Saudi Arabia?

A flexible employment contract is an electronic contract that governs the relationship between the employer and the employee under the Saudi flexible work system, and is subject to the following conditions and regulations under the Flexible Working Hours Law:

Nature of the Contract

The contract must be for a fixed term and specify the hourly wage, and it must be electronically documented on the portal designated by the Ministry. There is no limit on the number of contracts an employee may enter into, provided there is no conflict between them. The contract is subject to the Pension Branch and the Occupational Hazards Branch in accordance with the rules and regulations established by the General Organization for Social Insurance (GOSI).

Working Hours

The maximum number of working hours with a single employer is ninety-five hours per month; any hours exceeding this are considered overtime. By mutual agreement of the contracting parties, the overtime pay may be equal to the hourly wage agreed upon in the contract. Working hours with a single employer must not exceed one hundred sixty hours per month, with the possibility of working for more than one employer, Note that there is no minimum number of working hours under the flexible working hours policy.

Eligibility for the Flexible Work Contract

The employment contract is limited to Saudi nationals only, and the flexible work system is subject to the calculation of Saudization rates under Nitaqat program. One point is awarded to the establishment upon completion of 160 hours of flexible work performed by an employee or a group of employees, provided that the calculation of Saudization rates is in accordance with the guidelines set by the Ministry of Human Resources and Social Development for the total number of employees at the establishment.

Contract Term

The duration of a flexible work contract with a single employer must not exceed one year, whether continuous or intermittent. If this period is exceeded, the employer may extend or renew the contract with the employee’s consent or enter into a new employment contract subject to all provisions of the Labor Law. The employer may terminate the flexible work contract through the online portal, provided that the hours worked by the employee under the flexible work system are recorded.

Leave and Compensation

The employer is not required to compensate the employee for leave, end-of-service benefits, or health insurance. Furthermore, the employee is not subjected to a probation period but is subject to the provisions of the Labor Law regarding rest periods. The employee has the right to accept or decline a work request at any time, subject to the terms of the flexible work contract.

Why is the flexible work schedule system important for talent and job seekers?

The flexible work hours system represents a significant development in the contemporary work environment and offers numerous benefits that make it an attractive option for talent and job seekers. Among the most important benefits individuals gain from this system are:

Achieving a work-life balance

Flexible working hours allow employees to adapt to their personal and professional circumstances, particularly mothers, students, and workers with family commitments, enabling them to achieve a balance between work and personal life.This increases employee satisfaction with their jobs and reduces burnout rates.

Increasing Income and Achieving Financial Independence

A flexible work system offers job seekers the opportunity to increase their income by working on multiple jobs or projects simultaneously, opting for overtime, or working with various companies, helping them achieve greater financial independence. It also provides freelancers and consultants with the opportunity to work on various projects without being bound by fixed working hours, allowing them the flexibility to manage their finances more effectively.

Skill Development and Continuous Learning

This work model gives employees the opportunity to develop their skills in diverse work environments. This diversity in work enhances their professional capabilities and creates more space for learning, self-development, or continuing their education, helping them acquire new skills, advance their careers, expand their expertise, and facilitate the entry and integration of emerging talent and graduates into the job market.

Enhancing a Sense of Loyalty and Belonging

The flexibility offered by flexible working hours makes employees feel trusted and valued, which strengthens their loyalty to the company, increases their commitment to performing their duties to the best of their ability, and contributes to achieving the organization’s long-term goals.

Increased productivity and focus

When employees are given the freedom to choose their working hours, they are able to set work times that align with their peak activity and concentration, leading to improved productivity and work quality.

Why is a flexible work system important for companies?

Flexible work hours reflect fundamental shifts in work culture, as companies allow their employees flexibility in determining their work hours and locations. This enhances their ability to adapt to economic and technological changes and offers them numerous benefits, such as:

• Attracting and Retaining Talent: Companies that adopt the flexible work system gain a significant competitive advantage in attracting top talent. By providing a flexible work environment that meets employees’ needs and offers them a better work-life balance, they become more attractive to top talent and enhance their ability to retain them.
• Enhancing business continuity: Flexible working hours enable companies to provide their services around the clock, which enhances business continuity and reduces the risks associated with operational disruptions resulting from traditional work schedules.
• Reducing operational costs: A flexible work system helps companies reduce operational costs, as the company pays only hourly wages for tasks that do not require a permanent commitment, without incurring costs for insurance, leave , and compensation. Additionally, some flexible work may be performed remotely, reducing expenses related to office space, equipment, and transportation.
• Promoting Inclusion and Diversity: Thanks to flexible work arrangements, companies can attract a diverse range of employees, which enhances the diversity and inclusivity of their workforce, creates a work environment rich in ideas and innovation, makes them appear more flexible and innovative, and improves their image and appeal to customers and investors.
• Increased Economic Flexibility: The flexible work hours system allows companies to adapt to market fluctuations by increasing or decreasing the number of employees as needed without incurring significant additional costs, thereby enhancing their ability to survive and compete during difficult times and reflecting their commitment to social responsibility.

What is the process for creating and registering contracts for employees under the flexible work system?

Flexible work contracts are created and registered through the dedicated online portal for flexible work launched by the Saudi Ministry of Human Resources and Social Development, following these steps: 

• Registering on the Flexible Work Portal: The employer must log in to the platform and create a new account or use their existing account.
• Creating the contract: The contract is created electronically by entering the necessary contract details, which include:
  • Establishment details: The contract includes the company name, commercial registration number, business address, and the name of its legal representative.
  • Employee details: These include the employee’s name, mobile phone number, email address, civil ID number, city of residence, and address.
  • Job details: These include specifics of the work the employee will perform, such as the job title or position, a brief description, the agreed-upon hourly wage, the start date, the work location, and the agreed-upon number of hours. These details can be modified based on mutual agreement between the parties.
  • Terms and Conditions: These include a set of rules governing the relationship between the worker and the employer, such as guidelines for performing the task and the worker’s responsibilities, or any other agreement between the parties, and how salaries are paid to workers under the flexible work system.
• Data Verification: Ensuring the accuracy of the entered data and reviewing the contract.
• Documentation: After all data has been entered and verified, the contract is documented to become legally recognized.

What is the process for registering employees under the flexible work system with the General Organization for Social Insurance?

When an employment contract is documented on the flexible work e-portal, the employee is automatically registered with the General Organization for Social Insurance without the need for any additional procedures by the employee or employer. This registration is automated based on the documented contract, in accordance with the following regulations:

• The worker must be a Saudi national over the age of 15 and must not be a government employee, a business owner, or an active voluntary contributor to social insurance. 
• Workers subject to the General Organization for Social Insurance system are permitted to combine a full-time employment contract with a flexible work arrangement, provided that the two contracts are with different entities; they may not be with the same entity, and a permanent contract cannot be converted to a flexible one.
• When an employee completes 8 hours of work at a single establishment, it counts as a full workday under the social insurance system. However, if an employee works fewer than 8 hours at a single establishment, those hours are not immediately counted; instead, a balance is maintained for the employee until 8 hours are completed, at which point they count as a full workday. 
• If a worker is employed by more than one establishment under the flexible work system in the same month, every 8 hours at each establishment is counted as a separate workday, and invoices are sent to each establishment at the beginning of the following month. 
• If a worker exceeds 95 working hours at one or more facilities, every 8 hours is counted as a workday based on the hours worked at each facility, and a month of membership is counted after 30 workdays are completed.