Investigate The Labor Reforms Initiative

Investigate The Labor Reforms Initiative (Lri) As A Tool For Saudi Arabia To Improve Its Ability To Achieve The Vision 2030 Development Plan

1.0 Introduction - Investigate The Labor Reforms Initiative

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A “labor reform initiative (LRI)” in Saudi Arabia has been launched to improve the contractual relationship between the workers and employers. The implementation of this law has been done to enhance the vision of the ministry to develop job marketing, strengthen the competition of labor marketing, and improve the working environment in the country. LRI grants the movement of jobs and controls the Exit and distribution of Re-Entry Visa. It has been applied to all the migrant laborers in the private industry and controls the movements established on the basis of contracts between employers and workers[1]. Through this new implementation of the reform, the employers will be required to record the employees online so that the differences between the migrant workers and workers in Saudi can be decreased. This initiative will be helpful for the control of baffled manpower in the nation. The improvement will give permission to the migrant jobholder to convey between bosses after their agreement lapsed, without any permission of the boss.

The initiative will also mention circumstances such as the duration of the contract, give a notice period to the workers and some particular estimation will be there. The reforms related to the exit and re-entry visa will allow migrant jobholders to move outside Saudi Arabia without the permission of their boss after the handover of their petition for the same. The LRI will shape all the outcomes faced by the employees if they break the agreement of the job. According to a famous businessman, the old financial system was not capable of fulfilling the need for the relationship between boss and workers. The new innovation has a strong capacity to push the country forward through the objective of “Vision 2030”.

The LRI services will be available online to the public through an app. Saudi Arabia has implemented a plan for development called “Vision 2030” to help the realm transform from an economy based on the oil industries to an economy based on an educational sector. The plan will focus on the diversification of the business, moving away from the operations and performance of gas and oil, and motivating all public and private industries to gain more investments through foreigners. Saudi Vision 2030 is the structural and organized initiative for t5he futuristic growth of the realm[2]. At the same time, it will also make the development of the projects related to the “National Transformation Program” organize various schemes related to employment and set goals for employee motivation. Saudi Vision 2030” will aim to increase the participation of working women, decrease unemployment, and improve the contribution of private industries. In January 2021, the MHRS also implemented some reforms in Laws related to the statutory termination periods, pay for maternity leave, payments for the dismissal based on unfair means and more. The proposed research will define the new rules and regulation policies of the labor market in relation to contractual relationships between employees and employers, specifically migrant workers. The future steps will be needed for the country to achieve the objective of the “Vision 2030”

1.1 Research Aim 

The purpose of this aim is to discuss the initiatives taken by the Saudi government regarding “Labor Reforms” to achieve the development plan of “Vision 2030”. It is noted that the country will improve the conditions of the labor market through the new venture. The country will also provide the needed jobs to its citizens and also improve the situation of the workforce of migrants. For the above purpose, the primary research data based on qualitative analysis will be discussed here. The main aim of this study is “to investigate the labor reforms initiative (LRI) as a tool for Saudi Arabia to improve its ability to achieve the vision 2030 development plan”. The study will show the expectations of the employees in the current changing situation and also show the actions taken by the government and organizations for the benefit of the citizens.

1.2 Research Objectives

Some major objectives will be designed for meeting the aim of this research. Based on the research topic, the objective will be formed by meeting research requirements. Those objectives are:

• To assess the relationship between workers and employers, skill power and working abilities of the workers
• To develop an understanding of the operations of an organization and its manufacturing capacity
• To gain knowledge of the challenging factors in the implementation of the LRI in Saudi Arabia in the development plan of “Vision 2030”
• To investigate the new “Labor Reforms Initiative” in the realm of Saudi Arabia in the context of the “Vision 2030” plan
• To develop a framework related to the establishment of the new workforce after labor reforms in Saudi Arabia

1.3 Research Questions

Some research questions will be discussed here to examine the existing knowledge about the LRI in Saudi Arabia for the development of the “VISION 2030” plan. The questions are mentioned below:

• What is the relationship between workers and employers, skill power and working abilities of the workers?
• What will be the understanding of the operations of an organization and its manufacturing capacity?
• What will the knowledge of the challenging factors in the implementation of the LRI in Saudi Arabia in the development plan of “Vision 2030”?
• What will the new “Labor Reforms Initiative” in the realm of Saudi Arabia in the context of the “Vision 2030” plan?
• How to develop a framework related to the establishment of the new workforce after labor reforms in Saudi Arabia?

2.0 Literature Review

2.1 Introduction

The review of this study is based on the implementation of new labor market policies and the effect of this process on the migrant workers in Saudi Arabia. It also discusses the factors such as the influence of LRI on private industries, its role in labor reformation, contractual relationship between the boss and workers in context of “Vision 2030” development plan.

2.2 LRI helps in boosting the number of private sector in Saudi Arabia

The ministry of “Human Resources and Social Development'' has launched the new “Labor Reform Initiative '' to reduce the career risk of the workers and strengthen the rights of both bosses and employees. The new system has enhanced the performance of the government and private industries by enabling some apps and digital platforms. The workers are more assured of their job now because of the digital implications such as giving permissions for the exit and re-entry visas and the final entry from the country[3]. The LRI allows the labors of the Saudi market to change their job without any restrictions. It can be applied by following certain rules and regulations policies as per the new initiative. It makes sure the rights of both employees and employers are protected in the country. In order to get the advantage of the job, the migrant workers should be capable of handling the particular circumstances[4]. According to this, the employees should work in their recent job for one year since they have entered the country.

In order to get into a new job, an employee should have a “notarized employment contract” if he does not follow particular rules. The workers can change their jobs if they have not been able to pay the monthly wages for three months or are not available for it because of their movement or imprisonment in other countries. This initiative will allow the workers to get the advantages of the two services which are final exit and exit and return. The failure of the work of an employee or the permit of his residence, the rules will not be applicable to the worker.

2.3 LRI has a significant role in labor reformation based on local and foreign workers

The LRI was announced to replace the existing labor laws in the Saudi Arabia. The labor reforms represent the changes to the existing labor laws and immigration system for the workers. Those reforms are mentioned here in a structural way. The labor law reform has been innovated by the ministry to cover all relationships related to t5he employment market, including the “Kafala System”. The initiative mainly focuses on the job career of the workers of Saudi Arabia and immigrant employees[5]. The workers can leave their jobs without any permission of their boss according to their contract of employment. They can quit their job without giving any prior notice before the ending date of their contract. It is possible in t5he case if they have worked in the country for one year. The3 ministry has launched an e-portal for both workers and employers so that they can improve their performance and working activities. The things related to the apps are submission of th3e notifications, offers related to the job, requests regarding transfers and so on.

The LRI also focuses on the entry and exit of migrant workers. Earlier an employee could not exit the country without applying for an exit and re-entry visa through the boss[6]. Now under the new rule of LRI, the permission of the boss for quitting the job or leaving the country is not necessary. The employees can do so by requesting the government through online platforms[7]. The administration of the country can deny the exit of the worker if any fines or any dues are outstanding. Once the government approves the request, the boss will get a notification of the leaving date and re-entering date of the employee in the realm. So, in order to come back to the country, the employees do not need any specific permission from their boss.

2.4 LRI in Saudi Arabia assists in protecting workers along with preserving dignity

The companies in Saudi Arabia should be aware of new rules implemented in the labor market and their possible limitations to doing business. First, The foreign workers in the country are related to the “Nitaqat System”. This system needs workers in the private industries to hire a lesser population of native citizens. This is dependent on the business industry and the number of workers[8]. According to the recent rules, if a foreign worker is wishing to quit his current job and join a new one the “Ministry of Interior” wants a no-objection certificate from his recent boss.

The workers are more assured of their job now because of the digital implications such as giving permissions for the exit and re-entry visas and the final entry from the country. The LRI allows the labors of the Saudi market to change their job without any restrictions. It can be applied by following certain rules and regulations policies as per the new initiative[9]. It makes sure the rights of both employees and employers are protected in the country. But the new Labor Law has redefined the system and it is not necessary for the employees to get permission from their boss to quit the job or join a new one. Secondly, the “Saudi Labor Law” is not applied to all types of workers[10]. The workers related to the domestic and agricultural fields, trainers and players at sports unions and clubs are controlled and administered by other laws. There has been no indication of the implications of new LRI on these categories of workers to date. Third, employers can protect their business by making or finding some clauses in the contract between employees and employers.

2.5 Saudi Arabia use the tool of LRI for social and Human resources development in 2030

Saudi Arabia is transforming through various phases. There is a high demand for the healthcare system and the development of human resources[11]. The facilities of healthcare have really become an important factor for the development of the country. The government is taking interest in the improvement of the health of native citizens and providing them so many services on various levels. There are so many challenges for the government in handling healthcare sector yet. The aim of the “Human Capability Development Program” is to make sure that the citizens have possible abilities to compete across the globe. It is possible by developing their skills and moral values as well as develops their mental knowledge[12]. The program is basically focused on the progress o9f educational activities in their childhood and developing their way for future goals. It also focuses on the citizens by giving them opportunities, supporting their innovations and developing policies for competitiveness.

2.6 Theoretical framework

The theoretical frameworks have been processed and developed such types of theoretical presentation of works and management of data[13]. The common parts of this study has been performed such types of theories as presence of Labor association and presences of economic overview of Saudi Arabia. Hence, researchers need to follow the “Labor theory of value” or “labor market theory” effectively. According to this theory, the government can able in providing proper protection to the labor.

Figure 2.6.1: Labor market theory

(Source: Self-created)

Labor il get proper time for working, as well as their income will be increased. The presence of effective and measure types of model has been developed in terms of semi structured nan do proper evidences that has been develop in terms of ease of the country labors restricted law and presences of workers and participants[14]. The deductive approaches has a ben performs in terms of managements of data and proper way of planning has been also introduces.

2.7 Literature gap

This case study has diverse implications on the labor marketing areas and the performance of an organization. This topic has some missing points such as political issues and the actions taken by the government of the country to provide major things to the foreign workers. This study has some gaps regarding the actions and thinking of the workers in their own favor. The study also missed the topic of the relationship between the foreign workers and the government of Saudi Arabia.

2.7 Conceptual schema

Figure 2.7.1: Conceptual schema

(Source: Self-created)

2.8 Summary

In this part, it has been described about the LRI. Based on the LRI, Saudi Arabia can able in developing HRM and more others. However, it helps the country to boost various private sectors in an effective way. It helps in arranging various programs for developing this LRI in a significant way.

3.0 Proposed Methodology

In the such types of research paper has been performed in terms of literature reviews that has been developed such types of academic prese4nce4s and overviews of the documents has been analyzed in terms of public and private types of organizations[15]. The labor reforms has been presents in terms of active and proper way of planning, and has been develops in terms of understanding presences of social phenomenon. The current type of lab outs activities has been develops and performs such types of activities in the kingdoms of Saudi Arabia[16].

3.1 Secondary data

According to this research, researcher’s secondary sources have been followed for collecting information related to research topic[17]. Based on this method, literature review will be done for collecting information related to private and public organization of Saudi Arabia based on labor activities.

3.2 Primary Data

The performances of active and proper types of planning have been involved in terms of qualitative methods of addition in terms of traditional doctrinal presences of their research. The structure has ben perform in terms of active and proper way of planning has ben forecasted in term of native and proper presentation of managements of understanding that such types of social phenomenon and presences in terms of tools will be interviewing. The proper types of presentation has been develops the workplaces of resources and social development factors[18]. The presence of effective and measure types of model has been developed in terms of semi structured nan do proper evidences that has been develop in terms of ease of the country labors restricted law and presences of workers and participants. The deductive approaches has been performs in terms of managements of data and proper way of planning has been also introduces.

The three groups of participants has been develops and perform in term of effective way of planning and performances of multi perspective outlooks[19]. In terms of the deductive approaches has been developed in terms of the management of data and away of planning. Two group of participants need to be interviewed for collecting primary information related to research topic. The performances has been presents the analysis and proper types of presentation in terms of active and proper way of planning has been develops min terms of data and pr5oces of labors laws and active presences of law of lab our in Saudi Arabia.

4.0 Project plan

The launch of the project development plan of Saudi Arabia plays a decisive role in meeting the target of business operational activity and it helps to achieve its project target within a given time frame. Project planning is necessary as it helps to achieve a project target over a stipulated time frame within an organisation. In order to ensure more success in successful project completion project planning is made and it helps to achieve the target of the project over a given time slot.

First-year plan

1. The first year research supervisor and discussion of the project framework are developed and it helps to gain lots of information regarding this research. An adaptation of the updated version is taken into consideration for gaining insight regarding these issues concerning Saudi Arabia and its vision 2030.
2. After creating the research plan it is discussed with the team for gaining insight into research objectives and schedule for gaining lots of information regarding research.
3. Labour reform initiative and its impact on Saudi Arabia are made in the literature review section and it provides lots of understanding regarding this research study. However various theories and models are analysed in this research which provides lots of understanding regarding the research topic.
4. In order to attain more knowledge and skills researchers attend various seminars and workshops for gaining lots of information for this research.

Second-year plan

1. After the end of the first year, a comprehensive planning was made for gaining insight into feedback and its impact on research work. Recommendations along with amendments are made for analysing loopholes of previous research.
2. Development of methodological section is made and its justification is analysed in this research which provides lotus of understanding to researcher regarding various issues of research.
3. Development of interviews along with pilot testing is made for gaining lots of information regarding this research and it helps in successfully conducting this research over a stipulated time frame.
4. Saudi Arabia and its preparation of fieldwork model are prepared for gaining lots of information for this research study in the second year.
5. In order to equip with skills and knowledge seminar and attendance in workshop helps in improving skills over a stipulated time frame.

Third-year plan

1. After analysing feedback and comments of the previous 2 years of study it is necessary to make necessary updates to the literature review and research methodology to gain insight into the research and it helps in successfully conducting this research.
2. A dissertation or thesis is made for gaining lots of information regarding various chapters of research and it includes an analysis of the introduction, literature review section, discussion, and finding along with a conclusion chapter for gaining lots of information regarding this research approach.
3. Publication of research paper is made for analysing relevant reviews and results of the study and it helps in successfully conducting this research in given third year of this research.
4. In order to acquire more knowledge and understanding regarding this topic, attend of seminars and workshops helps in acquiring knowledge regarding this study approach.

Figure 4.0: Gantt chart

(Created by learner)

References

Journals

AlQahtani, S.N.,. Comparative Analysis Between Saudi Arabia and Norway in Moving Beyond Fossil Fuels Towards a Sustainable Economy: A Special Emphasis on the Renewable Energy Sector (2022)

Atique, A. Just Greening the Gulf: Sustaining Justice for Migrant Workers (2021)

Balabel, A. and Alwetaishi, M.,. Towards Sustainable Residential Buildings in Saudi Arabia According to the Conceptual Framework of “Mostadam” Rating System and Vision 2030. Sustainability, 13(2), p.793 (2021).

Cook, W.R.A. Living Language Policy Through Stratified Space: A Linguistic Ethnography in the United Arab Emirates (2020)

DALGAMONI, N.A.A.,. FOOD SOVEREIGNTY IN THE ARAB WORLD: UNDERSTANDING SMALLHOLDER FARMERS EMPOWERMENT THROUGH REGIONAL COLLABORATIVE STRATEGIES. A CASE STUDY OF JORDAN (Doctoral dissertation, University of Colorado) (2020)

Deb, D., Dey, R. and Balas, V.E.,. Engineering research methodology. Reino Unido: Springer (2019)

Durand-Lasserve, O.,. Policies to Nationalize the Private Sector Labor Force in a Matching Model with Public Jobs and Quotas (2021) (No. ks--2021-dp05).

Grimm, M. and Boukerche, S.. Enabling Institutional Investment in Climate Smart Infrastructure (2020)

Habibi, N.,. Implementing saudi arabia’s vision 2030: An interim balance sheet. Middle East Brief, 127, pp.1-9 (2019)

Harrell, P.E., Rosenberg, E., Cohen, W.D.S., Shiffman, G.M., Singh, D. and Szubin, A.. Economic Dominance, Financial Technology, and the Future of US Economic Coercion. Center for a New American Security (2019)

Klinenberg, E., Araos, M. and Koslov, L.. Sociology and the climate crisis. Annual Review of Sociology, 46, pp.649-669 (2020)

Layssi Stouhi, N.,. Energy Attributes Certificates: A Novel Mechanism to Support Energy Transition in Lebanon (Doctoral dissertation (2020).

Moosa, M.. Development of a Model for Determining Factors Affecting Safety Performance in the Saudi Arabian Construction Industry Using Structural Equation Modelling (SEM) (2018).

Palik, J . The Challenges of Dual-Societies: The Interaction of Workforce Nationalisation and National Identity Construction through the Comparative Case Studies of Saudisation and Emiratisation. Migration to the Gulf: Policies in Sending and Receiving Countries, 105, p.l (2018)

Rahman, R. and Qattan, A.,. Vision 2030 and Sustainable Development: State Capacity to Revitalize the Healthcare System in Saudi Arabia. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 58, p.0046958020984682 (2021)

Thiollet, H. and Assaf, L. Cosmopolitanism in exclusionary contexts. Population, Space and Place, 27(1), (2021) p.e2358

Welton, S. The Bounds of Energy Law. BCL Rev., 62, p.2339 (2021)

World Health Organization, 2019. Survive and thrive: transforming care for every small and sick newborn.

wto.org, TRADE POLICY REVIEW https://www.wto.org/english/tratop_e/tpr_e/g407_e.pdf (2022)

[1] Durand-Lasserve, O.,. Policies to Nationalize the Private Sector Labor Force in a Matching Model with Public Jobs and Quotas (2021) (No. ks--2021-dp05).

[2] Thiollet, H. and Assaf, L. Cosmopolitanism in exclusionary contexts. Population, Space and Place, 27(1), (2021) p.e2358

[3] AlQahtani, S.N.,. Comparative Analysis Between Saudi Arabia and Norway in Moving Beyond Fossil Fuels Towards a Sustainable Economy: A Special Emphasis on the Renewable Energy Sector (2022)

[4] Rahman, R. and Qattan, A.,. Vision 2030 and Sustainable Development: State Capacity to Revitalize the Healthcare System in Saudi Arabia. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 58, p.0046958020984682 (2021)

[5] Balabel, A. and Alwetaishi, M.,. Towards Sustainable Residential Buildings in Saudi Arabia According to the Conceptual Framework of “Mostadam” Rating System and Vision 2030. Sustainability, 13(2), p.793 (2021).

[6] DALGAMONI, N.A.A.,. FOOD SOVEREIGNTY IN THE ARAB WORLD: UNDERSTANDING SMALLHOLDER FARMERS EMPOWERMENT THROUGH REGIONAL COLLABORATIVE STRATEGIES. A CASE STUDY OF JORDAN (Doctoral dissertation, University of Colorado) (2020)

[7] Habibi, N.,. Implementing saudi arabia’s vision 2030: An interim balance sheet. Middle East Brief, 127, pp.1-9 (2019)

[8] Moosa, M.. Development of a Model for Determining Factors Affecting Safety Performance in the Saudi Arabian Construction Industry Using Structural Equation Modelling (SEM) (2018).

[9] wto.org, TRADE POLICY REVIEW https://www.wto.org/english/tratop_e/tpr_e/g407_e.pdf (2022)

[10] Palik, J . The Challenges of Dual-Societies: The Interaction of Workforce Nationalisation and National Identity Construction through the Comparative Case Studies of Saudisation and Emiratisation. Migration to the Gulf: Policies in Sending and Receiving Countries, 105, p.l (2018)

[11] Klinenberg, E., Araos, M. and Koslov, L.. Sociology and the climate crisis. Annual Review of Sociology, 46, pp.649-669 (2020)

[12] Layssi Stouhi, N.,. Energy Attributes Certificates: A Novel Mechanism to Support Energy Transition in Lebanon (Doctoral dissertation (2020).

[13] Grimm, M. and Boukerche, S.. Enabling Institutional Investment in Climate Smart Infrastructure (2020)

[14] Welton, S. The Bounds of Energy Law. BCL Rev., 62, p.2339 (2021)

[15] Harrell, P.E., Rosenberg, E., Cohen, W.D.S., Shiffman, G.M., Singh, D. and Szubin, A.. Economic Dominance, Financial Technology, and the Future of US Economic Coercion. Center for a New American Security (2019)

[16] Deb, D., Dey, R. and Balas, V.E.,. Engineering research methodology. Reino Unido: Springer (2019)

[17] Atique, A. Just Greening the Gulf: Sustaining Justice for Migrant Workers (2021)

[18] World Health Organization, 2019. Survive and thrive: transforming care for every small and sick newborn.

[19] Cook, W.R.A. Living Language Policy Through Stratified Space: A Linguistic Ethnography in the United Arab Emirates (2020)