11,000 Saudi firms closed due to Nitaqat: MIT study
Meanwhile, the Labor Ministry said employers cannot reduce a worker’s salary during his or her training period
Some 11,000 Saudi firms have closed down due to the implementation of the Nitaqat program to support Saudization, according to a study conducted by Massachusetts Institute of Technology (MIT) which is participating in training Saudi workers online in coordination with the Labor Ministry.
The closures, according to the study, took place in the 16 months since the beginning of the Nitaqat program in 2011. It said 96,000 Saudis were employed in the private sector during that period.
Meanwhile, Tayseer Al-Mufarrij, the director of the Labor Ministry’s Information Center, said employers cannot reduce a worker’s salary during his or her training period.
Nitaqat has specified SR3,000 ($800) as the minimum salary for a male or female Saudi employee, according to the Saudization percentage. A Saudi employee whose salary is less than SR3,000 is not counted as one Saudi as regard the Saudization percentage in the firm.
Several Saudi women in a number of firms in Jubail have lodged complaints against their employers for salary cuts during training.
This article was first published in the Saudi Gazette on Monday, Sept. 22, 2014.
Saudi Arabia launches new labor awareness website, but in Arabic onlyThe website,is presently only in Arabic, but the ministry says that an English version is being developed Features
Saudi suspends labor visas for nations worst-hit by EbolaThe virus has claimed 1,552 lives out of 3,069 reported cases Middle East
Saudi labor ministry looking into expanding job positions for womenReports
Big drop in number of labor disputes in Saudi ArabiaThe ministry said resolving labor issues was part of efforts by the Saudi authorities to protect the rights of expatriates in the country Economy
Saudi working women seek recognitionAs more and more Saudi women join the labor force, the calls for recognizing women’s contributions to society have grown Features