The English version of this document is for guidance only.
The Arabic version is the governing text.  

Chapter Four

The Labor Contract

Article 70

A labor contract is a contract concluded between an employer and a workman, whereby the latter agrees to work under the direction or control of the employer for a specified or unspecified period in consideration of wage, or for the performance of a specified job, and which contains the terms of employment agreed upon.

Article 71

An employer cannot be obliged to reemploy a workman under probation for a period exceeding three months in respect of workmen employed at a monthly rate, or exceeding one month in respect of other workmen.

A workman shall not be employed under probation more than once by one employer. The contract shall specifically and in writing provide that the workman is under probation, and the period shall be clearly defined, otherwise the workman shall be considered as a regular employee.

Article 72

A labor contract concluded for a specified period shall terminate upon the expiry of its term. If both parties continue to enforce the contract thereafter, it shall be considered renewed for an unspecified period.

Article 73

If the contract is for an unspecified period, either party may cancel it for a valid reason, subject to giving the other party a thirty-day prior notice in respect of workmen employed at a monthly rate, and a fifteen-day prior notice in respect of other workmen.

If the party who has cancelled the contract fails to observe the prescribed notice period, he shall pay the other party an indemnity equivalent the workman's pay for the notice period or the remainder thereof. The workman's last wages shall be taken as a basis for determining the indemnity in respect of workmen who receive their pay by the month, the week, the day or the hour.

In the case of workmen whose wages are fixed on a piecework basis, the indemnity shall be determined on the basis of the average pay received by the workman for actual workdays during the last three months.

Article 74

If the contract is cancelled for no valid reason, the party who is prejudiced by such cancellation shall be entitled to an indemnity to be assessed by the competent Commission, provided that such assessment shall take into account actual and contingent material and moral prejudice suffered by such party. In the case of the workman, such assessment shall take into account the nature of the work, the period of service, the workman's age, the pay he was receiving, the family burdens he shoulders, the extent to which his income from his new job is lower than the income from his old job, the degree of arbitrariness of the discharge decision, the extent to which this decision affects the workman's reputation, and any other conditions and concomitant circumstances in accordance with the rules of equity and current generally accepted practice.

Article 75

A workman who is discharged for no valid reason may apply for a stay of execution of such discharge. The application shall be submitted to the Director of the Labor Office of the area in which his place of work is located, within a period not exceeding fifteen days from the date on which the employer delivers the discharge decision to the workman, or notified him of such discharge by registered letter or by any other means proving receipt. The Director of the appropriate Labor Office shall, immediately upon submission of the application to him, take necessary action to settle the dispute amicably. If settlement is not reached, the Director shall, within one week from the date of submission of the application, refer the same to the appropriate Commission of the area in which the place of work is located, together with a memorandum, in five copies, containing a summary of the dispute and the arguments of both parties together with the Labor Office's comments and recommendations for the settlement of the dispute.

The chairman of the Commission shall, within three days from the date of referral of the application to the Commission, fix a hearing for the examination of the stay of execution, within two weeks from the date of such referral. The workman and the employer shall be given notice of the time and place of the hearing, and both workman and employer shall be summoned to attend such hearing.

A copy of the memorandum of the Labor Office shall be attached to each notice which shall be served by registered letter or by any other means proving receipt.

The Commission shall expeditiously decide on the application for stay of execution within two weeks from the date of the first hearing. Its decision in this respect shall be final. The decision shall fix a date for a hearing to examine the basic issue within the week following the issuance of the decision. If the Commission orders a stay of execution, the employer shall simultaneously be ordered to pay to the workman forthwith a sum equivalent to his pay from the date of his discharge.

The employer may, within one week at the most from the date of issuance of the decision ordering the stay of execution, return the workman to his job and pay him his wage arrears, whereupon the dispute shall be considered settled and such settlement shall be recorded in a report to be drawn up before the Chairman of the Commission, signed by the employer and the workman, and approved by the Chairman of the Commission. This report shall have the force of a decision issued by the Commission. If the said period expires and no settlement is reached, the Commission shall decide on the basic issue within a period not exceeding fifteen days from the date of issuance of the decision ordering the stay of execution.

If the Commission finds that the workman's discharge was without a valid reason, it may order his reinstatement with payment of his wage arrears, or it may order payment of his statutory entitlements as well as any compensation due him for damages he has sustained. The onus of proof that the discharge was for a valid reason shall lie with the employer. The Commission's decision in this respect shall be considered a decision of first instance.

Discharge shall be regarded as having no valid reason if it is established that it followed the workman's demand for legitimate rights due to him by the employer and no other valid reason for termination is established. In such case, the employer shall be ordered to reinstate the workman, pay his wages from the date of his discharge to the date of his reinstatement, and to consider his services as continuous.

The workman's discharge shall also be regarded as having no valid reason if such discharge was caused by the workman's refusal to comply with an order transferring him from his original place of work when such transfer is not based on an adequate, valid reason dictated by work requirements, or is such as to cause serious prejudice to the workman. In such case, the employer shall also be ordered to return the workman to his original place of work and to pay his wage arrears from the date of his discharge to the date of his reinstatement, and to consider his services as continuous.

The workman's right to apply for a stay of execution of the decision to discharge him, shall lapse if he fail to submit his application within the prescribed period of fifteen days, without prejudice to his right to claim his other statutory rights within the one-year period prescribed in Article 13 hereof.

Article 76

If a labor contract is concluded by any person acting on behalf or for the account of the original employer, both the employer and such person shall be held jointly and severally responsible for the fulfillment of the obligation prescribed hereunder.

Article 77

The labor contract must be in writing, drawn up in Arabic and in duplicate, one copy to be retained by each of the two parties. However, even though it is not written, a contract shall be considered existent, so that the workman alone may by all means of proof establish his rights, and either party may at any time demand that the contract be put in writing.

As for workmen employed by the State or by general organizations, the appointment decision or order issued by the appropriate authority shall replace the contract.

Article 78

The employer may not transfer the workman from his original place of work to another place necessitating a change in his place of residence, if such transfer is apt to cause a serious prejudice to the workman an is not justified by a valid reason dictated by the nature of the work.

Article 79

A monthly-rated workman may not be reclassified as a daily-rated workman or as a weekly, hourly or a piecework rated workman, unless he so agrees in writing and without prejudice to the rights he has acquired during the period he spent as a monthly-rated workman. The grade classification shall be considered an acquired right of the workman and he may not be reclassified in a lower grade.

Moreover, except in cases of necessity and as dictated by the nature of the work, a workman may not be called upon to perform a work which is essentially different from the work agreed upon, unless he so agrees in writing and provided that this is done on a temporary basis.

Article 80

Except within the limits dictated by the need to attract foreign workmen, an employer who employs foreign workmen may not pay them wages and remunerations in excess of what he pays Saudi workmen of equal competence, technical proficiency and academic qualifications.

Article 81

If a workman causes the loss, damage or destruction of materials, machinery or products which belong to or are in the custody of the employer, where such loss, damage or destruction was the result of the workman's fault or contravention of the employer's instructions and not the result of a third party's fault or force majeure the employer may withhold from the workman's wages the amount required for repairs or for restoring things to their original condition, provided that the amount so withheld shall not ‘exceed five days' wages in each month. However, the employer may, if necessary, lodge a complaint to claim a higher amount if the workman has other property from which recovery can be made. The workman may also appeal the employer's assessment to the appropriate Commission, and if the latter rules that the employer had no claim against the workman for the amount he withheld from the workman's pay or if the employer is awarded a smaller amount, the employer shall refund to the workman, within seven days from the date of issuance of the ruling, the amount unduly withheld.

Article 82

The labor contract shall not come to an end upon the employer's death unless his person was taken into consideration in concluding the contract. It shall, however, come to an end upon the death of the workman, his total disability to perform his work as established by a medical certificate, or his illness resulting in his absence from work for a period of not less than ninety consecutive days or for periods which in the aggregate do not exceed one hundred and twenty days within one year.

Such disability or illness shall be established by a medical certificate to be issued by a competent physician accredited by the employer or, if the latter does not have an accredited physician, then by a physician to be appointed by the appropriate Government agency.

The employer must refrain from terminating the contract during the period of illness and, without prejudice to the provisions pertaining to compensation for industrial injuries, the employer shall, in case the contract comes to an end for any of the said reasons, pay the workman the full termination award in accordance with the provisions of this law.

Article 83

The employer may not cancel the contract without termination award, advance notice or indemnity except in the following cases, and provided that he gives the workman a chance to state his reasons for objecting to the cancellation:

1. If, during or by reason of the work, the workman has committed an assault against the employer or against any of his supervisors.
2. If the workman fails to fulfill the essential obligations arising from the labor contract, or to obey legitimate orders, or if, in spite of being warned in writing, he deliberately fails to observe the instructions posted by the employer in a conspicuous place for the safety of the work and workmen.
3. If the workman is proved to have adopted a bad conduct or to have committed an act affecting honesty or honor.
4. If the workman has deliberately committed any act or negligence with intent to cause material loss to the employer, provided that the latter shall report the incident to the appropriate authorities within twenty-four hours from the time of its coming to his knowledge.
5. If it is proved that the workman had resorted to forgery in order to obtain the job.
6. If the workman is hired on probation.
7. If the workman absents himself without valid reason for more than twenty days in one year or for more than ten consecutive days, provided that discharge shall be preceded by a warning in writing by the employer to the workman after ten days' absence in the second.
8. If it is proved that, without permission from the person supervising his treatment, the workman has left the hospital or any place provided for his treatment. This shall not prejudice his right to such compensation as he is entitled to under the provisions on injuries and compensation set forth in the Social Insurance Law.
9. If it is proved that the workman has divulged the industrial and commercial secrets of the work in which he is engaged.

Article 84

Without prejudice to his right to an award for his period of service and indemnity for any prejudice that he may have sustained, as if the cancellation has been initiated by the employer, the workman may, without advance notice, leave the work before the expiration of the contract in the following cases:

1. If the employer has not fulfilled his obligations towards the workman.
2. If the employer calls upon the workman to perform a work which is essentially different from the nature of the work for which he has committed himself under the contract, or if the employer transfers the workman from his original place of work to another place, necessitating a change in his place of residence, which is apt to cause serious prejudice to the workman and has no valid reason dictated by the nature of the work.
3. If the employer or whoever is acting on his behalf has committed an assault or an immoral act against the workman or against a member of his family.
4. If there is a serious hazard which threatens the safety or health of the workman, provided that the employer has been aware of the existence of such hazard and has taken no steps to remove it.
5. If at the time of concluding the contract, the employer or his representative has misled the workman with respect to the terms of employment.
6. If the employer through his actions and particularly by his unfair treatment or by his breach of the terms of the contract, has caused the workman to appear as the party terminating the contract.

Article 85

The employer shall bear the costs of returning the workman to the place where the contract was concluded or to the place from which the workman was brought, within the period to be specified by the appropriate Labor Office, after the date of the end of the work or the date of termination of the contract for one of the reasons set forth in Articles 82, 83 and 84, provided that the workman shall not have engaged in another work at the place of the last job, or shall not have prematurely ceased to work for no valid reason, or shall have expressed in writing before the appropriate Labor Office his desire not to return to the place where the contract was concluded or to the place from which he had been brought. If the employer fails to fulfill this obligation, the appropriate administrative agencies shall, at the request of the director of the labor office, repatriate the workman immediately and recover the costs from the employer. The appropriate labor office may, in case the workman is discharged under Article 83, exempt the employer from this obligation if the employer so request, with due regard to the circumstances surrounding the discharge of the workman.

Article 86

In case the workman's service is terminated or comes to an end, the employer shall return to him all that he has deposited with the employer. Moreover, the workman shall be entitled to obtain from the employer, free of charge, a service certificate specifying the period of the workman's service and the salary and benefits he was receiving. If such certificate contains anything that may prejudice the reputation of the workman or diminish his chances to find a job, it must state the grounds therefor.

Article 87

Where the term of a labor contract concluded for a specified period comes to an end or where the employer cancels a contract of unspecified period, the employer shall pay to the workman an award for the period of his service to be computed on the basis of half a month's pay for each of the first five years and one month's pay for each of the subsequent years. The last rate of pay shall be taken as basis for the computation of the award. For fractions of a year, the workman shall be entitled to an award which is proportionate to his service period during that year. Furthermore, the workman shall be entitled to the service award provided for at the beginning of this article in the following cases:

1. If he is called to military service.
2. If a workwoman resigns because of marriage or childbirth.
3. If the workman is leaving the work as a result of a force majeure beyond his control.

Article 88

In contract of unspecified term, if the workman resigns he shall be entitled to one third of the award provided for in the preceding Article if his service period is not less than two consecutive years and not more than five years, he shall be entitled to two thirds of the award if his service period is more than five consecutive years an less than ten years, and to the full award if he resigns after ten years of service; provided that in all the said cases, he give notice to the employer in writing of his intention to resign thirty days before he leaves the work.

Article 89

All obligations shall be discharged, not withstanding the dissolution, liquidation, shutdown, bankruptcy, merger or subdivision of the establishment or its conveyance by inheritance, legacy, donation, sale, assignment or any other disposition. With the exception of liquidation, bankruptcy and authorized final shutdown, the labor contract shall be considered in force in all the above cases.

Article 90

The original and the new employer shall be held jointly and severally responsible for the discharge of the obligations arising from the contract which fell due prior to the transfer of ownership. As for obligations arising after such transfer, these shall be assumed by the new employer alone.

Obligations of Employers:

Article 91

In addition to the obligations provided for in this law and in the rules and decisions issued for its implementation, the employer shall:

1. Treat his workmen with due respect and refrain from any word or deed that may affect their dignity or religion.
2. Facilitate any task of the officials of the appropriate authorities relating to the to the inspection, control or supervision of the proper implementation of the provisions of this law and of the rules and decisions issued pursuant to it. He shall also furnish the competent authorities with all the necessary information that may be required from him for the achievement of this purpose.
3. Grant the workmen the necessary time to enable them to exercise their rights provided for herein without any deduction from their wages for such time. He may, however, regulate the exercise of this right in such a manner as would not disrupt the progress of the work.

Article 92

With due to the relevant regulations, the employer shall pay the workman his wages at the time and place specified in the contract or determined by accepted general practice.

Article 93

If the workman or employee reports to work in the hours of the day stipulated in the labor contract or expresses his readiness to perform his work during these hours and is prevented from doing so only by a cause which is ascribed to the employer, the workman or employee shall be entitled to the pay of that day.

Article 94

Employers or their agents, or any person having authority over the workmen, shall tighten control to prevent the entry of any legally prohibited substance to the places of work, and anyone who is found in possession of such substance or who has consumed it shall, in addition to the legal penalties, be liable to deterrent administrative penalties.

Article 95

In the case of establishments employing ten or more workmen, employers shall provide each workman with a service card bearing the signature of the employer or his agent and the stamp of the establishment, and giving the workman's name, surname, occupation, date of birth, nationality and date of his employment, as well as his wages with their supplements. At the end of the workman's service, the date of his severance shall be added in his card. The Minister may issue service card forms which employers shall have to adopt.

Obligations of Workmen:

Article 96

In addition to the obligations provided for in this Law and in the rules and decisions issued for its implementation, a workman shall:

1. Perform the work required of him pursuant to his labor contract under the employer's control and direction and in accordance with his instructions, if such instructions involve no inconsistency with the contract, with the Law or with public morals and if obeying such instructions does not expose the workman to danger.
2. Return to the employer the unconsumed materials and take adequate care of the Machines and tools placed at his disposal.
3. Observe good conduct and behavior during work.
4. Extend every help and assistance without demanding additional pay in return, in cases of disasters and dangers that threaten the safety of the place of work or of the place of work or of the persons working therein.
5. Submit at the request of the employer to the medical examinations he wishes him to undergo before or in the course of his employment for the purpose of making sure that the workman is free from occupational, communicable or incurable diseases.
6. Keep the technical, commercial and industrial secrets of the products which the workman produces or in the production of which he directly or indirectly participates and, in general, keep all the trade secrets relating to the work which, if divulged, are apt to prejudice the interests of the employer.

Article 97

1. If, while in the service of the employer, a workman succeeds in making a new invention, the employer shall have no right to such invention, even though the workman may have developed the invention in connection with the work he performed in the service of the employer.
2. However, any inventions developed by the workman in the course of his work shall Belong to the employer if the nature of the work undertaken by the workman requires him to devote all his efforts to the development of inventions, or if the employer has specifically stipulated in the contract that he shall be entitled to whatever inventions the workman may develop.
3. If the invention has a significant economic value, the workman may in the cases described in the preceding paragraphs, claim a special consideration which shall be assessed in accordance with the principles of equity. Such assessment shall take into account the amount of assistance extended by the employer and the extent to which his facilities were used for this purpose.

Article 98

The workman shall use the safety equipment designated for each operation and shall preserve such equipment. He shall abide by the instructions laid down for the preservation of his health and for his protection from injuries and diseases. He shall refrain from any act or negligence which would result in failure to abide by the instructions or in misusing or impairing the equipment provided for the protection of the health and safety of his fellow workmen. The employer may include in the disciplinary rules a provision for the punishment of any workman who violates the provisions of this Article.

  Chapter V

Marine Labor Contract

Article 99

Any contract of employment made between the owner or financier of a Saudi Arabian ship of not less than 500 tons, or between the representative of either, and a seaman or master to perform work on board ship, or for a sea voyage, is a marine labor contract to which the provisions of this law shall apply when they are not inconsistent with the provisions of this Chapter and the decisions issued pursuant thereto.

Article 100

In the application of the provisions of this Chapter, the term "financier of ship" shall mean any natural person, any company, or any public or private organization for whose account the ship is fitted out.

Article 101

In the application of (the provisions of) this Chapter, the term "seamen" shall mean any person, male or female, who undertakes to the financier of the ship or his representative to work on board ship.

Article 102

All persons working on board ship shall be subject to the authority and orders of the master of the ship.

Article 103

The labor contracts of all seamen working on a ship shall be entered in the ship's records or appended thereto, under pain of nullity and liability. These contracts shall be written in a clear language, leaving no room for doubt or controversy as to the rights and duties stipulated therein.

These contracts shall indicate whether they are made for an unspecified term or for one voyage. If the contract is made for a specified term, this term must be clearly indicated. If it is made for one voyage, it must specify the town or seaport at which the voyage shall end, and at what stage of unloading the ship at the said port the contract shall terminate.

Article 104

A marine labor contract must specify the kind of work assigned to the seaman, the method of performing it, the amount of wages and wage supplements to be paid to him, and other details of the contract.

Article 105

The work rules and conditions on board ship shall be posted in the ship and in the section reserved for the crew. These conditions and rules must specify:

1. The seaman's obligations and duties towards the ship's financier and the work organization rules on board ship.
2. The obligations of the ship's financier towards the seaman as regards their fixed wages, rewards, and other forms of pay.
3. The method of suspending the payment of wages, or of making deduction therefrom, as well as of payment of advances on wages.
4. The place and time of settlement of accounts and final payment of wages.
5. The rules and principles governing the supply of food and sleeping accommodations on board ship.
6. The illness and injuries of seamen.
7. The conduct of seamen and the conditions governing their repatriation.
8. The seamen's paid annual vacations.
9. The end-of-service award and other indemnities payable in connection with the termination or expiration of the labor contract.

Article 106

The marine labor contract must be in writing and in quadruplicate, one copy to be delivered to the master, the second to the seaman, the third copy shall be filed with the Coast Guards and the fourth with the Office of the Deputy Minister for Labor. The contract shall indicate the date and place of its execution, the seaman's name, surname, age, nationality, domicile, the work he is bound to perform, his wages, the certificate permitting him to work in sea navigation, and his marine identification card. If the contract is for a single voyage, the date and point of departure shall be indicated.

Article 107

A person who works as a seaman must satisfy the following requirements:

1. He must have completed eighteen years of age.
2. He must be in possession of a certificate permitting him to work in marine service.

Article 108

All the seaman's entitlements shall be paid in the official currency, and they may be paid in foreign currency if they fall due while the ship is outside the territorial waters and the seaman so agrees in writing.

The seaman may request his employer to pay the cash wages due to him to whomever he shall designate.

Article 109

The employer shall deposit the amounts due to the decedent or lost seaman, or to the seaman who is unable to receive them, with the Chairman of the appropriate Primary Commission.

Article 110

The seamen shall be provided with food and sleeping accommodations at the expense of the employer, and this matter shall be regulated by decisions to be issued by the Minister of Labor.

Article 111

Any seaman who participates in helping or rescuing another ship shall have a share of the reward to which the ship on which he is working is entitled, regardless of the kind of his wages.

Article 112

The employer may terminate the contract without prior notice, and without award or indemnity, if the ship sinks, or if it is confiscated or lost.

Where the wage is on a single voyage basis, the employer may also terminate the contract without prior notice and without award or indemnity if the voyage is canceled at the outset for a reason beyond the employer's control, unless otherwise stipulated in the contract.

Article 113

In case of expiration or cancellation of the contract, the employer shall be under obligation to:

1. Return the seaman to the port from which he departed at the beginning of the performance of the contract.
2. Provide him with food and sleeping accommodations until he reaches that port.

Article 114

Working hours on board ship while it is on the high seas must not exceed twenty-four hours in two consecutive days, or 112 hours in a period of 14 consecutive days. Working hours while the ship is in port shall not exceed eight hours a day. If the ship is in port the seaman may be put to work on routine and cleaning jobs during his weekly rest days for a period not exceeding two hours.

Chapter VI

Protection of Wages

Article 115

The Council of Ministers shall, when necessary, have the right to determine the minimum wages either in general or with respect to a given area or occupation.

Such decision of the Council of Ministers shall be issued on the recommendation of the Minister of Labor, and the decision of the Council of Ministers shall be considered effective from the date of its publication in the Official Gazette.

In recommending the minimum wages, the Minister of Labor shall seek the assistance of a committee composed of the Deputy Ministers of Labor, Finance and National Economy, Petroleum and Mineral Resources, and Commerce and Industry.

The Minister of Labor shall, by decision, add to them two other members of experience and knowledge he shall select. The committee shall be called to a meeting whenever the Minister of Labor deems it necessary.

Article 116

The workman's wages and any amount due to him must be paid in the official currency of the country. Wages must be paid during working hours and at the place of work in accordance with the following provisions:

1. Wages of daily-rated workmen shall be paid at least once a week.
2. Wages of monthly-rated workmen shall be paid once a month.
3. If the work is performed by piece and it needs a period exceeding two weeks, a payment proportionate to the work completed by the workman must be made to him every week, and the full balance of his wages shall be paid within the week immediately following the delivery of the work.
4. In cases other than those mentioned above, wages shall be paid to workmen at least once a week.

Article 117

If the workman's service terminates, his wages shall be paid immediately; however, if he leaves the work of his own accord his wages may in this case be paid within seven days at the most from the date of his leaving the work.

Article 118

The employer shall have the right not to pay the workman's wages or any amount due to him, unless the workman acknowledges receipt by signing a special register provided for the purpose at the place of work in accordance with the form that will be determined by decision of the Minister of Labor.

Article 119

No amount may be deducted from the workman's wages in satisfaction of private rights, except in respect of the following:

1. To recover the advances or any amounts paid to him in excess of his rights, provided no deduction shall, in this case, be made from the workman's wages in excess of 10% of such wages.
2. Social insurance premiums due from the workman.
3. The workman's contributions to the Savings Fund and the advances due to this Fund.
4. Installments pertaining to any plan for the construction of houses for the purpose of transferring ownership thereof to the workmen, or to any other benefits or services, if any, as decided by the Minister of Labor.
5. Fines that are inflicted on the workman for offenses committed by him under the provision of Article 126, as well as any amount that is withheld from his pay in accordance with Article 81, for any damage he has caused.
6. Any debt to be recovered in execution of a judiciary judgment, provided that the amount deducted in this respect shall not exceed one-fourth of the wages due to the workman and provided that an alimony debt and a debt for food, clothing, and lodging shall be satisfied in this order and before all other debts.

Article 120

In all cases, the percentage of the amounts deducted shall not exceed one-half of the wages due to the workman, unless the Commission finds that it is possible to increase the deduction beyond such percentage, or that the workman needs more than one-half of his salary. In this latter case, the workman shall under no condition be paid more than three-fourths of his salary.

Article 121

If any amount is deducted from the workman's wages for reasons other than those specified herein, without the latter's consent, or if the employer delays, without justification, payment of the workman's wages when they fall due in accordance with the Law, the workman, his representative, or the Head of the appropriate Labor Office may submit an application to the appropriate Commission so that it may order the employer to return to the workman any wrongfully-deducted amounts or to pay him his outstanding wages.

If it is established to the said Commission that the employer has unjustifiably deducted the said amounts or delayed payment of the wages, the Commissions may impose on the employer a fine that shall not exceed double the amount deducted from the workman's wages, or double the outstanding wages. All pavements ordered by the Commission in this case shall be collected through administrative channels.

Article 122

Service is presumed to be rendered for pay if the service consists in work which is not customarily performed gratuitously, or which is in the occupational line of the person who performed it.

Article 123

1. If neither the labor contract nor the Labor Law, nor the basic work rules stipulate the wages that the employer is obligated to pay, the wage determined for another work of the same kind, if it exists, shall be adopted; otherwise, the wage shall be determined in accordance with the generally accepted practice of the trade and of the area in which the work is performed. If no such practice exists, the appropriate Commission shall determine the wage according to the requirements of equity.
2. The foregoing shall also be followed in determining the quality and scope of the service which the workman must render.

Article 124

The following amounts shall be considered an integral part of the wage and shall be taken into account in computing the amount that may be attached.

1. The commission given to peddlers, traveling salesmen, and commercial representatives.
2. Percentages paid to employees of commercial establishments on the price of their sales, as well as the allowances paid to them on account of the high cost of living.
3. Any grant made to the workman in addition to the salary, as well as any amount paid to him as a reward for his honesty, or for his increased family obligations and the like, if such amounts are stipulated in the labor contracts or in the basic works rules, or if such amounts are paid as a matter of generally accepted practice so that workmen have come to regard them as part of the wage, and not as a gratuity.

Article 125

In an establishment that employs twenty or more workmen, the employer must draw up a set of rules covering penalties and rewards and the conditions under which these are to be imposed or granted, and he shall post such rules in a conspicuous place in the establishment. To become effective, such rules and any modifications thereto must be approved by the Minister of Labor within two months from the date of their submittal. If the said period elapses without the Minister's approval or objection, they shall become effective.

The Minister may by decision issue standard rules for penalties and rewards relevant to the nature of the work, in order that employers may be guided by them in preparing the rules of their own establishments.

The employer may not impose a penalty on a workman for an offense not listed in the disciplinary rules.

The employer may not impose on the workman, for a single offense, a fine exceeding the wages of five days, or suspend him as a disciplinary measure and without pay for a period exceeding five days for a single offense. In all cases, the workman shall not be subject to more than one penalty for the same offense, nor shall the amount withheld from his wage in a single month in satisfaction of the fines imposed upon him exceed the pay of five days; nor shall the period of suspension from work without pay exceed five days per month.

Article 126

A workman may not be accused of any offense that was discovered more than fifteen days earlier; nor may a penalty be imposed upon him more than thirty days after the offense is proven with regard to monthly-paid workman, or more than fifteen days after the offense is proven with regard to other workmen.

No penalty may be imposed upon a workman except after hearing his remarks and examining his defense. The workman shall have the right to object before the appropriate Commission which shall issue its final decision in this matter within a period of one week from the date of recording the objection with it.

Article 127

Fines imposed on workmen shall be recorded in a special register which shall indicate the name of the workman, the amount of his wage, and the reason for imposing the fine upon him and the date on which it was imposed.

[continued: Chapters Seven Through Thirteen]