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Five years jail for employers who ‘fake’ Saudization

Citizens will be encouraged to report any fake Saudization cases to the ministry by phone or through its website

Published: Updated:

Employers involved in fake Saudization will face 5 years imprisonment and a fine of up to 10 million riyals, according to a draft regulation prepared by the Ministry of Labor.

Violating businesses will be deprived of recruitment, government loans as well as blocked from participating in government bids and transferring sponsorships, according to the draft regulation, a section of the Arabic press reported on Saturday.

People will be encouraged to report any fake Saudization cases to the ministry by phone or through its website.

The ministry’s inspectors will then visit the violating businesses to verify the report.

The ministry explained that fake employment is where a business enlists a Saudi with the social security body without actually employing him in order to achieve its Saudization quota.

Unemployed Saudis can find out whether their names are listed with social security by logging on to the social security website and feeding their national identification card number. If they find that their names are listed with social security, they should immediately report it to the ministry.

The ministry listed various types of fake Saudization, which include enlisting a special needs national without entrusting him with work and enlisting a special needs national who is actually incapable of performing any duties.

Fake employment also includes employing women in jobs that are not suitable for them, and failing to update the data of any Saudi worker who has left his job.

Fake employment also includes enlisting a Saudi with social security even though he is a government or military employee, and transferring a Saudi from one sector to another for the purpose of increasing the Saudization quota in the other sector.

In 2011, the Kingdom imposed stricter penalties for failing to meet quotas for hiring Saudi citizens.

In 2012 it also introduced a levy of SR2,400 ($640) a year on every foreigner a company employed over the number of its Saudi workers.

Last week Riyadh announced it was introducing unemployment insurance for Saudis who lost their jobs for “reasons beyond their control” and who had been in work for more than a year.

The policy was designed to encourage more young Saudis to look for jobs in the private sector.

(This article was first published in Saudi Gazette on Jan. 26, 2014)