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mal, the owner of Zag Company, enjoyed a good relationship with the owner of Salam Wholesalers. This was even though they were direct competitors.
mal, the owner of Zag Company, enjoyed a good relationship with the owner of Salam Wholesalers. This was even though they were direct competitors. After the Zag Company found out that Mr. Hadad acted against former employees, Mr. Kamal called Mr. Hashim. He asked him to give them written permission to work for their company. They were excellent salesmen and Mr. Kamal did not want to lose them. Salam Wholesalers has invested a great deal of time and money to train the salesmen. In addition, they had incurred relocation expenses as well as other ex- penses. Salam Wholesalers had trained them well by providing them with on-the- job training and experience. Within 6 months from their point of hire, Badr and Jalil found a better opportunity and left. It is important to understand that Saudi Arabian companies traditionally do not pay expatriate employees as well as natural born citizens. Oftentimes, once expatriate employees acquire on-the-job experi- ence, they want to change jobs because they can earn more money at another firm. When the Zag Company found out the Mr. Hadad, the general manager, had taken legal action and informed the government, Mr. Kamal tried to con- vince Mr. Hashim to reverse the actions of his general manager. The owner of Salam Wholesalers felt he needed to support his general manager. He did not want these two expatriate employees to break the law and have other employees see that they could get away with it. Mr. Hashim had a major dilemma to solve. There are two types of work contracts in Saudi Arabia. The first type is a term contract, which consists of fixed-term contracts and indefinite term con- tracts. The second type is project-based contracts. Article 55 of the Labor Law states that a fixed term contract terminates upon the expiration of its term (STA Law Firm, 2019). Foreign workers can only get a fixed term contract. If there is no specifica- tion of the term mentioned in the employment contract, it automatically ends when the expatriates' work permit expires (STA Law Firm, 2019) The law also states that when an expatriate leaves a firm for any reason, the person cannot work for another firm unless they have written permission from their former em- ployer. The person is prohibited from working for another Saudi Arabian firm for 3 years. It is permissible to resign and return to their home country. Note: Fictional names have been used in this case. Abstract This case describes an expatriate employee in Saudi Arabia. It requires students to consider relevant issues in determining an appropriate managerial response. These issues include government policy regarding compli- ance with the law, expatriates, employee commitment and job satisfaction, employer and employee rights and responsibilities, and personal relationships between companies. The Hit and Run Expatriate Employees Salam Wholesalers is a trading company that handles consumer personal goods, such as sunglasses, cosmetics, colognes, and various sundries. Two salesmen, Badr and Jalil, got a better job offer and they decided to leave Salam Wholesalers. These two employees were from Egypt. They did not tell the government they were changing employment, nor did they request written permission. Subsequently, their former general manager, Mr. Hadad, found out that they were working for a competitor. They had defrauded Salam Wholesalers, and broke Saudi Arabian law. Therefore, they would be sent back to Egypt. Mr. Ka- Discussion Questions 1. How would Mr. Hadad's commitment and job satisfaction level be affected if the owner reverses Mr. Hadad's actions? 2. How would job satisfaction be affected if the owner of Salam Wholesalers com- plies with the wishes of the owner of the Zag Company? 3. What factors might affect the commitment level of these two employees?
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