SANED Law

The Unemployment Insurance Law (SANED) is a law designed to support Saudi workers and their families during periods of unemployment due to circumstances beyond their control. The program provides a minimum income to ensure a decent life for the worker and their family, in addition to offering necessary training and assisting in the search for another job, thereby bridging the transitional gap between two jobs.

The Unemployment Insurance (SANED) Law was issued on January 13, 2014, and it began implementation in the Kingdom starting on August 28, 2014, for establishments following the Hijri calendar, and from September 1, 2014, for establishments following the Gregorian calendar.

The Unemployment Insurance (SANED) Law comprises twenty-nine articles, which include definitions of terms and phrases specific to the law, its affiliation with social insurance, the scope of application to Saudi workers, contributions and the rights of subscribers, the amount of compensation, cases of entitlement to compensation, cases of suspension of compensation payment, combining compensation under this law with social insurance benefits, the responsibility for monitoring the implementation of the law, the right to appeal, as well as penalties for violators, and other articles.

SANED applies to all Saudis under the age of fifty-nine who are subject to the pension branch under the Social Insurance Law. The program contributes to job localization in the private sector and serves as one of the mechanisms for managing the labor market. It achieves social benefits with various security and economic dimensions, helping to address both current and future situations.

Additionally, to be eligible for compensation under the SANED Law, the worker must meet the following conditions: have the required qualifying contribution periods, be capable of working, not have been dismissed for a reason attributable to them, not have left the job voluntarily, and not have any income from work or private activity. Additionally, the worker must register with the ministry by submitting a request to the General Organization for Social Insurance within ninety days from the date of leaving the job.

Furthermore, the worker must comply with the training requirements as determined by the fund, adhere to the instructions and guidelines issued by the fund, and actively seek employment.