Article 2 of the Saudi Unemployment Insurance Law
المادة 2 من نظام التأمين ضد التعطل عن العمل
The article makes unemployment insurance a branch of social insurance that ensures compensation for subscribers who are out of work, under the Law's provisions.
Official text (Arabic)
This article has not been amended since the law was issued.
يعد التأمين ضد التعطل عن العمل فرعاً من فروع التأمينات الاجتماعية، ويكفل تقديم التعويض للمشتركين المتعطلين عن العمل وفق الأحكام المحددة بموجبه.
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 2 explained in plain English
This article sets out the nature of unemployment insurance: it is not a system independent of the social insurance system, but one of its branches, and its purpose is to ensure that compensation is provided to subscribers who have become unemployed, under the provisions that the Law sets.
To understand the article, the definitions in Article 1 are used:
- Unemployment: a worker losing their job for a reason beyond their control, while being able to work, willing to work and looking for work.
- Compensation: the cash benefits that the Law provides.
- Subscriber: anyone subject to the Law, male or female.
In practice this means that the protection does not cover everyone who left a job, but those who lost it for a reason beyond their control and who meet the descriptions above, and who then meet the eligibility conditions that the Law details in other articles.
Article 3 follows to specify who the Law applies to compulsorily, namely Saudi workers without discrimination of sex, subject to the age condition stated there, and those who are compulsorily subject to the pensions branch under the Social Insurance Law.
That this insurance is a branch of social insurance explains why the General Organization for Social Insurance is a main body in applying it. Anyone with a specific question about subscription or compensation would do best to consult a lawyer specializing in social insurance.
Practical example
Ahmed, a Saudi employee at a company in Riyadh, lost his job after the department he worked in was closed. From this article Ahmed knows that unemployment insurance is a branch of social insurance that provides cash compensation to subscribers who are out of work, so he checks that the Law's conditions apply to him before submitting his claim.
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 2 of the Saudi Unemployment Insurance Law
Is unemployment insurance part of social insurance?
Yes. The article provides that it is one of the branches of social insurance.
What does unemployment insurance provide?
It ensures the provision of compensation, which is the cash benefits that the Law provides, to subscribers who are out of work under its provisions.
What is meant by unemployment?
A worker losing their job for a reason beyond their control while being able to work, willing to work and looking for work, according to the definition in Article 1.
More articles on Persons Covered by Unemployment Insurance
- Article 3
The article applies the Law compulsorily to Saudi workers without discrimination of sex if under 59 when it starts to apply to them, and stops a subscriber's contributions at age 60.
1- يطبق النظام بصورة إلزامية على جميع العمال السعوديين دون أي تمييز في الجنس، بشرط أن تكون سن العامل عند بدء تطبيق النظام عليه دون سن التاسعة والخمسين. 2- إذا ب
- Article 4
The article requires employers to apply the Law and the Regulations from the day the conditions are met, and refers the way employers and subscribers register with the Organization to the Regulations.
1- يلتزم أصحاب العمل بتطبيق هذا النظام واللائحة، ويبدأ التطبيق من اليوم الذي تكتمل فيه الشروط المنصوص عليها في هذا النظام واللائحة. 2- تحدد اللائحة طريقة التسجي
- Article 17
The Article provides that the subscriber's age is determined by their birth certificate or the certificate issued by the competent authority under the law.
تحدد سن المشترك بشهادة ميلاده أو بالشهادة التي تصدرها الجهة المختصة نظاماً.
- Article 26
The Article voids any agreement or settlement that contradicts the Law, made by those it covers, if it would harm subscribers' rights or impose additional obligations on them.
كل اتفاقٍ أو تسويةٍ تخالف أحكام هذا النظام وتصدر ممن يشملهم، تُعدُّ باطلة إذا كان من شأنها أن تضر بحقوق المشتركين أو تحملهم التزامات إضافية.
- Article 27
The Article provides that the Social Insurance Law applies to matters the Unemployment Insurance Law does not address, to the extent consistent with its nature.
فيما لم يرد به نص في هذا النظام، يطبق نظام التأمينات الاجتماعية بالقدر الذي يتفق مع طبيعة هذا النظام.
- Article 28
The Article requires the Minister to issue the Implementing Regulations with the Board of Directors' approval within 60 days of the Law's publication, and to publish them in the Official Gazette.
يصدر الوزير اللائحة - بناءً على موافقة مجلس الإدارة - خلال ستين يوماً من تاريخ نشر هذا النظام، وتنشر في الجريدة الرسمية.
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.