Ministry of Social Affairs to Cooperatives: Ban on amendments or agreements violating employees' contracts

Al-Jarida has learned that the Ministry of Social Affairs, represented by Azdari Al-Mutairik, Director General of the General Administration for Cooperation Affairs, has issued a circular to the boards of directors of all associations mandating strict compliance with the employment and labor contracts submitted to the Public Authority for Manpower.

According to the circular, which Al-Jarida obtained a copy of, associations must ensure that “the employment and labor contracts concluded with their staff are identical and consistent in terms of salary, job title, benefits, and all other terms and conditions with the contracts and data officially submitted by the Ministry to the Public Authority for Manpower.” The ministry emphasized the necessity of “not making any amendments, agreements, or arrangements that contradict what is documented in the contracts officially submitted to the relevant government authorities, particularly regarding basic salary, allowances, financial benefits, working hours, nature of work, and all other contractual rights and obligations.”

During the circular, the ministry stressed the need to review existing contracts and verify that all data and conditions contained therein are accurate and consistent with the official documents and data approved by the “Manpower Authority,” taking the necessary steps to rectify any discrepancies or conflicts in accordance with the law.

The ministry underscored that any financial obligations or labor rights arising from employment contracts must be based on valid, approved contracts that comply with the regulations, laws, and decisions governing work. It held the relevant authorities in each association responsible for adhering to the related regulations, decisions, and instructions, and for periodically reviewing employees’ contracts to ensure ongoing compliance with applicable legal and regulatory requirements.

The ministry noted that this measure aims to avoid the financial and legal repercussions resulting from any discrepancies or conflicts between the actual contracts concluded with employees and those officially submitted to the Authority, as well as to prevent potential claims, financial obligations, labor disputes, or regulatory observations, thereby safeguarding the rights of all parties and ensuring the legal integrity of cooperative associations.

While the ministry appealed to the Union of Cooperatives to issue the aforementioned circular to all cooperatives and emphasize the necessity of complying with its provisions and taking the necessary internal measures to ensure implementation and follow-up, it confirmed that this comes in the interest of ensuring the integrity of administrative, financial, and legal procedures in associations, and in compliance with the provisions of laws, regulations, ministerial decisions, and systems in force in the country.