Why internal regulations?

What does the internal regulations of an establishment mean? What are its most important elements? Is it a necessity or a luxury? Is it mandatory?

The internal regulations for organizing work are an important source for regulating the relationship between two parties: the employee or worker and the establishment they work for or its owner. They consist of a set of written rules and instructions to organize the operations of the establishment, outlining the rights and duties of its employees and the responsibilities of employers. They are, in general, a vital tool to ensure the smooth operation of both government and private institutions and the achievement of their goals. These regulations are typically issued by the management of the establishment and may cover various aspects, such as recruitment procedures, wages, leaves, absences, discipline, ethics, safety, health, and more.

The types of these regulations can vary depending on the nature of the establishment, whether it's a corporation, a company, or any other form of organization. There are generally two main types of internal regulations:

1. General Regulations: These are regulations prepared by government authorities and are available to the public. Establishments are required to adopt them without making any amendments.

2. Specific Regulations: These are regulations created by the establishment according to its specific needs and circumstances. In this type, establishments can add or remove specific items from the model regulations to better suit their requirements without violating or deviating from the rules set by government authorities.

Internal regulations offer several benefits, including:

1. Administrative Stability: These regulations help maintain administrative stability within an establishment by establishing rules and procedures that govern its operations. This, in turn, helps avoid labor disputes and enhances job satisfaction.

2. Transparency: Internal regulations promote transparency within an organization by setting clear standards for responsibilities, rights, and duties that are accessible to all employees.

3. Protection of Employees' Rights: By defining specific rules and procedures for dealing with employees, internal regulations create a fair and transparent working environment.

4. Improved Efficiency: Internal regulations contribute to the increased efficiency of an establishment by defining rules and procedures that regulate administrative and technical operations both within and outside the organization.

5. Building Trust in the Establishment: Internal regulations serve as a consistent and governing reference for all activities and relationships within an establishment.

6. Protecting the Establishment from Risks: These regulations help protect the establishment from risks by specifying preventive measures and occupational safety and health rules, contributing to the safety and well-being of employees and the protection of assets.

Is it mandatory to have internal regulations?

Yes, having internal regulations for the operation of an establishment is mandatory in the Kingdom of Saudi Arabia. Article 43 of the Saudi Companies Law states that "every company must establish internal regulations that include provisions related to the organization of work within the company, the definition of responsibilities and authorities, as well as administrative, financial, and technical procedures."

Additionally, the Saudi Ministry of Human Resources and Social Development has issued directives to all Saudi establishments to create internal work regulations according to specific standards approved by the Ministry. These regulations should be consistent with the Saudi Companies Law and other relevant regulations and systems.

What elements must be included in the internal regulations of an establishment?

Typically, the internal regulations for an establishment include the following elements:

1. Administrative Organization: These regulations outline the establishment's goals, activities, organizational structure, authorities, responsibilities, work rules, working hours, rules for rewards and penalties, types of leave, and their conditions.

2. Financial Organization: This section may cover accounting procedures, budgeting, and financial controls.

3. Technical Organization: This part could include regulations related to production, quality, and occupational safety and health.

4. Violations and Penalties: The regulations define disciplinary violations that employees might commit and the penalties associated with them.

5. Closing Provisions: The regulations specify how to amend the internal regulations and procedures for resolving labor disputes.

In conclusion, the presence of internal regulations in an establishment contributes to achieving its goals and optimal performance by organizing work. They also ensure compliance with all applicable laws, enhance employee protection and protect assets, creating a safe and comfortable working environment. Moreover, having clear standards and rules for work and interactions within an establishment promotes transparency, fosters ethical practices, and encourages social responsibility, ultimately enhancing productivity.