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Employment - Commercial and Business Disputes in Saudi Arabia Residents working in Saudi Arabia generally must surrender their passports while in the Kingdom. The sponsor (normally the employer) obtains work and residence permits for the employee and for any family members. Family members of those working are not required by law to surrender their passports, though they often do. Residents carry a Saudi residence permit (Iqama) for identification in place of their passports. The written, Arabic text of a contract governs employment and business arrangements under Saudi law. Before signing a contract, American companies should obtain an independent translation to ensure a full understanding of the contract’s terms, limits, and agreements. Verbal assurances or side letters are not binding under Saudi law. In the event of any contract dispute, the Saudi authorities refer to the contract. Since the Saudi sponsor holds the employee’s passport and controls the issuance of exit permits, Americans cannot simply leave Saudi Arabia in the event of a labor or business dispute. An American who wishes to break an employment or business contract may have to pay substantial penalties before being allowed to leave Saudi Arabia. To change employers in Saudi Arabia requires the permission of the previous employer, which is discretionary. Saudi courts take seriously their responsibility to adjudicate disputes. This process, which is performed in accordance with Saudi law and customs, may require the hiring of legal counsel, should not be entered into without an Arabic translator, and can take several months. The U.S. Embassy and U.S. Consulates General cannot adjudicate labor or business disputes. Searching for easy online shopping? Shopping Favorites - Unique Online Shopping Mall See you tomorrow. suzie Suzie's Travel WebLog Posted: Tuesday 3rd May 2005, 12:28 AM

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