Article 27 of the Saudi Labor Law

Article 27 of the Labor Law gives the Minister of Human Resources and Social Development an important regulatory power: where needed, the Minister may require employers not to hire any worker until the worker has been registered with the approved employment channels. In that case hiring is not done by direct agreement alone, but must first pass through the channel the Ministry specifies.

This power is not general and unlimited; the text gives it three clear features:

• Optional and tied to need: the text says "the Minister may, where necessary", so the requirement does not apply automatically; it needs an express decision from the Minister when the need arises.
• Limited in scope: the requirement may be limited to certain activities and occupations, or to certain regions and governorates, without covering all employers in the Kingdom.
• Dependent on the Minister's decision: the conditions and arrangements under which registration with the employment channels takes place are set by the Minister in a decision, and the article itself does not state them.

What is the aim of this rule? Article 27 falls within the part on organizing hiring operations, alongside Article 26, which requires all establishments to attract and hire Saudis at a ratio of not less than 75% of total workers, and Article 28, which requires an employer with 25 or more workers to employ at least 4% of workers from vocationally qualified persons with disabilities, whether through nomination by the employment channels or otherwise. Registration with the employment channels is a tool that helps the Ministry follow the labor market and direct job opportunities toward the groups the Law seeks to support.

What does this mean in practice?

1. The employer should check whether its activity, occupation or region is covered by a ministerial decision issued under this article.
2. If it is covered, it must register workers with the employment channels before hiring them, and on the conditions in the decision.
3. If no decision covering its activity has been issued, no obligation arises under this article specifically.

Note that the text of the article now in force is the one set out in Royal Decree No. M/44 dated 8/2/1446 AH, effective from 20/8/1446 AH. To find out whether a particular activity is covered by a ministerial decision, and the details of its conditions, it is advisable to refer to the Ministry's decisions or consult a lawyer specialized in labor cases.