Accommodation & Transport Issue

Hello

I've been living in a 4 bedroom apartment in a compound for a few months. The cost of the apartment is 7000SR per month to the company, my allowance is 3000SR per month.

Suddenly, the company told me that I had several choices:

1. move out of the compound to find alternative arrangement - some of my colleagues already did that

2. remain on my own, take the allowance and pay the difference

3. take a room mate from the same company, who with the same allowance we can pay the difference i.e. 500 SAR.

The same approach has been adopted concerning the transport to / from our place of work. The company hired a bus from a well known rental company. We have a transport allowance of 1350 SR per month. Assuming 13 of us travel on the bus, the allowance covers the rental cost; if the number falls below 13, we have to make up the difference.

I'd be grateful if somebody can confirm two points, please:

1. is an employee obliged to pay any differences for both transport and housing, given they are both covered in Saudi Labor Law? I'm almost certain that employees might have to.

2. is the company's approach inside or outside Saudi Labor Law?

Common sense dictates that the employer should find housing and transport within its own corporate budgeting, rather than allow its alleged financial mismanagement to fall on the employees.

Thank you.

I would think that your responsibilites and the company's responsibilities would have been written on the employment contract that you signed, no?

In my contract, the total compensation package included salary, housing allowance, and transportation allowance.  My contract never stipulated that the company will provide housing for me.  They gave me a housing allowance and it is up to me to find housing.  I actually like it this way because I have control over how I spend my salary.

You might want to go back to your employment contract to check these things out then decide on the proper course of action.

Good luck.

paxbritannia :

Hello

I've been living in a 4 bedroom apartment in a compound for a few months. The cost of the apartment is 7000SR per month to the company, my allowance is 3000SR per month.

Suddenly, the company told me that I had several choices:

1. move out of the compound to find alternative arrangement - some of my colleagues already did that

2. remain on my own, take the allowance and pay the difference

3. take a room mate from the same company, who with the same allowance we can pay the difference i.e. 500 SAR.

The same approach has been adopted concerning the transport to / from our place of work. The company hired a bus from a well known rental company. We have a transport allowance of 1350 SR per month. Assuming 13 of us travel on the bus, the allowance covers the rental cost; if the number falls below 13, we have to make up the difference.

I'd be grateful if somebody can confirm two points, please:

1. is an employee obliged to pay any differences for both transport and housing, given they are both covered in Saudi Labor Law? I'm almost certain that employees might have to.

2. is the company's approach inside or outside Saudi Labor Law?

Common sense dictates that the employer should find housing and transport within its own corporate budgeting, rather than allow its alleged financial mismanagement to fall on the employees.

Thank you.

Correction:

Transport and Housing is not covered in Labor law, only generalized as wages. Now wage segmentation can be done by the company according to their work regulations (labeiha) or HR policy. Most commonly you find companies paying - Basic , Hosuing , Transportation.

If a company pays the two allowances (housing + transportation) in cash, then you cannot argue since they are within the boundaries of Law. If they give accommodation & transportation, then the company have the right to stop these allowances to the employee.

Hope the ruling on these are clear.

Hello as a professional,  does your employer have any right here in Saudi to restrict your movements within the country? Like going to visit a friend or relative?

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