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Saudi Arabia: Wage protection is mandatory for enterprises with more than 30 workers

Media In / Agencies / Riyadh January 31, 2018

The Ministry of Labor and Social Development will begin on Thursday, 1 February 2018, the mandatory implementation of the thirteenth phase of the “Wage Protection” program, which includes establishments with a workforce of between 39 and 30 workers. The establishments included in this phase are estimated at 14,000 establishments The employment of about 477,402 workers.
The ministry’s spokesman Khaled Abaakhel confirmed that the ministry is committed to applying “wage protection” to all private sector establishments to ensure the timely disbursement of wages, setting wage levels in all professions and reducing problems between employer and worker. Apply the program according to the specified time frame, to be applied to all private sector establishments.
Abaalkhil said that according to the list of violations and penalties of the labor system, the company is punished by not paying the wages of the employees at their specified dates of pay, with a fine of up to three thousand riyals. Provide employees with their wages on the system for two months from the date of mandatory application according to the stages of the program, except for the issuance and renewal of work permits. If the establishment is delayed for three months, all the services of the establishment will be suspended by the Ministry. The employees will be allowed to transfer their services to other establishments without Approval current employer, even if it is not finished work for the driver’s license.
The Ministry has launched the “wage management” system as part of its initiatives for the National Transition Program 2020. The initiative aims to provide an appropriate and safe working environment in the private sector. The initiative will increase transparency and protect the rights of contracting parties and provide infrastructure for small and medium enterprises.
Entities may access the Ministry’s website and view the schedule of the next stages of the program and may participate in it on a pilot basis before the date of the special obligation, and this experimental participation will not result in any penalties or observations.
For more information about the pay profile and file upload steps, you can download the WPS User’s Guide, available through the Ministry’s portal on the Internet.
www.mlsd.gov.sa.

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