Article 5 of the Saudi Unemployment Insurance Law
المادة 5 من نظام التأمين ضد التعطل عن العمل
The article divides the tasks of applying the Law between the General Organization for Social Insurance and the Ministry, and sets what each body checks of eligibility conditions and suspension cases.
Official text (Arabic)
This article has not been amended since the law was issued.
تنسق المؤسسة مع الوزارة لتطبيق هذا النظام وتنفيذ أحكامه بمراعاة الآتي :
1 - تتولى المؤسسة الاختصاصات الآتية:أ - تسجيل المشتركين وتحصيل الاشتراكات.
ب - دفع التعويض للمستفيدين.
ج - إدارة واستثمار الحساب الخاص بهذا النظام.
د - التأكد من تحقق الفقرات الفرعية (أ، ب، د، ز) من الفقرة (1) من المادة (الثامنة)، والفقرات الفرعية (أ، ب، ح، ط) من الفقرة (1) من المادة (الخامسة عشرة) من هذا النظام.
2 - تتولى الوزارة – أو أي جهة عامة أو خاصة تكلفها الوزارة – الاختصاصات الآتية :أ - تسجيل المشتركين المتعطلين عن العمل.
ب - تحديد الاحتياجات التدريبية وتوفيرها.
ج - التأكد من تحقق الفقرات الفرعية (ج، هـ، و، ح، ط، ي، ك) من الفقرة (1) من المادة (الثامنة)، والفقرات الفرعية (ج، د، هـ، و، ز) من الفقرة (1) من المادة (الخامسة عشرة) من هذا النظام.
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 5 explained in plain English
This article regulates the division of roles between two bodies that coordinate together to apply the Law: the General Organization for Social Insurance and the Ministry (the Ministry of Labor, according to the definition in Article 1).
The Organization's powers:
- Registering subscribers and collecting contributions.
- Paying compensation to beneficiaries.
- Managing and investing the account dedicated to the Law.
- Checking conditions in Article 8: Saudi nationality, completing periods of work, having no income from a job or private activity, and not having reached 60; and cases of suspension in Article 15: death, having a monthly income from work, leaving the Kingdom, and reaching 60 with entitlement to a pension.
The Ministry's powers (or any public or private body it assigns):
- Registering subscribers who are out of work.
- Identifying training needs and providing them.
- Checking conditions in Article 8: not being dismissed for a reason attributable to the subscriber, not leaving work of their own will, being able to work, being registered with the Ministry, searching seriously, committing to training, and complying with the Ministry's instructions; and cases of suspension in Article 15: losing the ability to work, not remaining registered, ceasing to search seriously, not committing to training, and not complying with the instructions.
The practical benefit is that the subscriber deals with the Organization over subscription and payment of compensation, and with the Ministry over registering as unemployed, training and searching for work. Article 6 provides for a coordination committee between the two bodies.
Practical example
Fahd lost his job at a factory in Kharj because it closed. Fahd registers himself as unemployed with the Ministry, which checks that he did not leave work of his own will and that he is able to work and is looking for work, while the Organization checks his nationality, his period of work and that he has no income, and then pays him compensation if the conditions are met.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentLabour & Employment Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Labour & Employment Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 5 of the Saudi Unemployment Insurance Law
Who pays unemployment compensation?
The General Organization for Social Insurance is the body that pays compensation to beneficiaries.
Where does someone who is out of work register?
The Ministry, or a public or private body it assigns, registers subscribers who are out of work.
Who provides training for the unemployed?
The Ministry identifies the training needs and provides them.
Articles this article refers to
- Article 8
The Article lists the conditions a subscriber must meet to receive unemployment compensation, including Saudi nationality, completing work periods and not leaving work voluntarily.
1 - يحق للمشترك الحصول على التعويض المنصوص عليه في هذا النظام إذا توافرت لديه الشروط الآتية: أ - أن يكون سعودي الجنسية. ب - أن يكمل المدد المحددة في المادة (الر
- Article 15
The Article lists the cases in which payment of compensation stops immediately, and allows it to resume from the first day of the month after notifying the Ministry within 90 days of the obstacle ending.
1 - يوقف صرف التعويض عن المستفيد بشكل فوري في أي من الحالات الآتية: أ - الوفاة. ب - إذا كان له دخل شهري من عمل. جـ - إذا أصبح غير قادر على العمل. د - إذا لم يعد
More articles on Roles of the Social Insurance Corporation and the Ministry
- 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 6
The article provides for a committee formed by decision of the Minister from representatives of the Ministry and the Organization to coordinate in applying the Law, and refers its rules of work to the Regulations.
تكوّن بقرار من الوزير لجنة من ممثلين عن الوزارة والمؤسسة، تتولى مهمة التنسيق بين الجهتين في شأن تنفيذ أحكام هذا النظام، وتحدد اللائحة القواعد التي تنظم عمل هذه
- Article 22
The Article gives inspectors of the Organization and the Ministry the power to monitor application of the Law, requires employers to give them information and records, and requires inspectors to keep confidentiality and treat people well.
1- يراقب تطبيق هذا النظام واللائحة مفتشو المؤسسة والوزارة - كل فيما يخصه - بحسب ما يحدده هذا النظام، وعلى أصحاب العمل وممثليهم أن يسمحوا للمفتشين بالحصول على ال
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.