News 24 | After abolishing the railway company … Find out how to deal with its employees

A cabinet decision was recently made to quash the General Corporation for Railways, to be replaced by the Railways Company, “SAR”. The decision included details on the treatment of the company’s employees after its implementation next April.

In its third clause, the ruling states that Saudi employees of the General Railway Organization who are subject to the civil service system and the civil pension system, who wish to move to work in the Railway Company Saudi Arabians (SAR) and be subject to the labor system and the social insurance system, will be treated with the transfer criteria set by the technical committee The problem is based on the (second) clause of Supreme Decree No. (36283) of 06/30/1440 AH according to the following:

1- If the duration of his services is less than (twenty years), his services will be terminated, and he will treat one of the following two alternatives as he wishes:

A- Liquidation of pension rights at his request – in accordance with the provisions of paragraph (2) of article 18 and article 23 of the civil pension scheme, and the company concludes with him an employment contract according to the system of work and in accordance with the wages and benefits approved by the company, provided that what he receives is not less than the total of what he earned in the last job he held.

B- The company concludes an employment contract with him according to the work system and according to the salaries and benefits approved in the company, provided that what he obtains is not less than the total he received in the last grade which he occupied, and the period of his services, at his request in the civil pension system, is included in the period of his new services in the social security system in accordance with the provisions of the system for the exchange of benefits between civil and military pension systems and social security. insurance system.

2- A person whose calculated retirement period of services has reached (twenty years) or more, his services will end and he will treat according to his desire one of the two following alternatives:

A- Send him back to early retirement – at his request – in accordance with the provisions of paragraph (1) of article 18 of the civil pension scheme, and the company concludes with him an employment contract according to the labor system and in accordance with the salaries and benefits approved by the company, provided that what he receives is not less than the total he receives in the last positions he has held.

B – The company concludes an employment contract with him according to the work system and according to the salaries and benefits approved in the company, provided that what he receives is not less than the total he received in the last rank he occupied, and the period of his service – at his request – in the civilian pension system is included in the period of his new service In the social insurance system in accordance with the provisions of the system for the exchange of benefits between civil and military pension systems and insurance system.

The decision also stipulated that Saudi workers of the General Railway Organization who are subject to the labor system and the social insurance system, who wish to relocate to work in (RAS) and who meet the transport criteria specified by the technical committee referred to in paragraph (third) of this decision, will be treated as follows:

1- The Saudi Railways Company (SAR) is required to conclude an employment contract with each worker according to the work system and in accordance with the wages and benefits approved in the company, provided that what he receives is not less than the total he received in the last job he held.

2- Their participation in social insurance is continuous.

3- The period of their services is considered to be continuous with regard to end-of-service indemnities and vacation, and the State bears the costs of end-of-service services and regular leave indemnities for their previous periods. work in the institution until the date of their transfer to the company.

The decision also stipulated that if the Saudi employee or worker does not wish to move to the company (SAR), after privatization, or if he does not meet the transfer criteria set by the technical committee referred to in the third clause of this decision, then it is possible to transfer his services with his work to any party.He has the right to be absent (one day) in the week or (8 hours) in the week to look for another party, for a maximum period of (one year) from the date on which he expressed his desire not to move or informed him that the standards do not apply to him.

The Minister of Transport can extend the aforementioned period (6 months) within the narrowest limits, provided that his file is then transferred to one of the government agencies through a committee formed from the two ministries: (Resources Human Resources, Social Development and Finance) whose task is to determine the government agency that transfers the employee or worker to him with his job.

The decision states that the company (SAR) commits to the following:

1- Not to terminate the employment contracts of any of the workers whose services have been transferred to him after the privatization in the (first) year from the date of transfer of their services.

2- Absence of termination of employment contracts for more than (15%) of the total number of workers whose services were transferred to it after privatization in the (second) year from the date of transfer of their services.

3- Do not terminate employment contracts for more than (15%) of the total number of workers whose services have been transferred to it after privatization in the (third) year from the date of transfer of their services.

(SAR) shall establish a mechanism for the conclusion of contracts with Saudi employees and workers therein, in accordance with the standards set by the technical committee referred to in clause (third) of this decision, and in accordance with the procedures set out therein.

Regarding retirement procedures, the decision provided for the formation of a committee within the State Pensions Agency: the Ministry of Finance, the General Social Insurance Organization and the Saudi Railways Company (SAR), which undertakes preparation of an integrated study. to determine the additional financial costs that one of the civil pension and social insurance systems may incur as a result of the implementation of the procedures mentioned in this decision, and by submitting the findings to the highest function within a deadline not exceeding six months from the date of its training.