Article 33 of the Saudi Privatization Law
المادة 33 من نظام التخصيص
With the Ministry of Human Resources' approval, a privatization project may be exempted from some employment rules, such as the localization ratio, termination and contract term, while protecting transferred workers' rights, with alternative provisions prepared by the Ministry.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز بموافقة وزارة الموارد البشرية والتنمية الاجتماعية استثناء أي مشروع من مشاريع التخصيص من بعض الأحكام المنظمة لشؤون العاملين، وذلك بناءً على طلب الجهة التنفيذية وبالتنسيق مع المركز، بما في ذلك نسبة توطين العمالة، والأحكام المتعلقة بإنهاء عقد العمل من قبل صاحب العمل، ومدة عقد العمل، وبما يضمن حقوق العامل المنتقل بموجب مشروع التخصيص، على أن تُعد وزارة الموارد البشرية والتنمية الاجتماعية بالتنسيق مع المركز الأحكام البديلة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 33 explained in plain English
When a service is privatized, workers may move to the private party, and the project may need flexibility in some employment rules. This article regulates that:
What is permitted: exempting any privatization project from some of the provisions governing workers' affairs, including:
- The workforce localization ratio.
- The provisions on termination of the employment contract by the employer.
- The term of the employment contract.
Procedures and conditions:
- At the request of the contracting authority and in coordination with the Center.
- With the approval of the Ministry of Human Resources and Social Development.
- In a way that guarantees the rights of the transferred worker under the privatization project.
- The Ministry, in coordination with the Center, prepares the alternative provisions.
In practice, the exemption is not automatic; it requires a request and approval. Nor does it mean leaving the worker unprotected, since the text requires guaranteeing the transferred worker's rights and requires alternative provisions to exist. The text does not state the content of these alternative provisions; they are issued by the Ministry.
A worker who has moved to a private company because of privatization should find out which alternative provisions apply to their project and, if advice is needed, consult a lawyer who specializes in this area.
Practical example
Maintenance services in a government entity were privatized, and a number of its employees moved to the private company. The contracting authority asked for the project to be exempted from some provisions on the term of the employment contract, and the Ministry of Human Resources approved, with alternative provisions prepared to guarantee the rights of these transferred workers.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 33 of the Saudi Privatization Law
Can a privatization project be exempted from the Saudization ratio?
It may be, with the approval of the Ministry of Human Resources and Social Development, at the request of the contracting authority and in coordination with the Center.
Are a transferred employee's rights lost because of privatization?
No. The text requires that any exemption guarantee the transferred worker's rights, with alternative provisions prepared by the Ministry.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.