02/09/2015
The Ministry of Labor announces new inspection procedures that will take place in next Muharram and includes new penalties
The ministry will apply 40 amendment on the labor law
Abdullah Abu Thunain, deputy minister for inspection and improving work environment, said that the ministry is in the process of applying 40 amendment to the Labor Law. Those laws will be effective from the fifth of next Muharram (23- November- 2015). The amendments will be in the inspection procedures as well as penalties and fines. He assured that penalties include fines ranging between 1000 and 100.000 riyals, and the temporary or permanent closure of the violating facilities.
Abu Thunain said during a workshop organized by Asharqia chamber on Monday (8/31/2015) and was moderated by Saleh Al-Humaidan, Chairman of the Human Resources Committee in that an agency for inspections was found to establish a work environment that is free of violations, as well as to raise awareness of the importance of labor law and applying in. He said that since the agency was established several years ago 124 892 visit to a number of facilities were conducted. During those visits, the agency has detected more than 34,000 violation, of which more than 3337 were violations of Article 39 and 4,479 violations with regard to feminization and 1,362 violations regarding working under sun. Many decisions has been made regarding those violations and the collected payment of outstanding bills was more than 31 million riyals (31.1492 million). He noted during the workshop, which was attended by a large number of representatives of companies in the eastern region that the agency is facing a series of challenges. Those challenges manifest in the escalating number of establishments and their spread geographically, where we suffer from poor communication, as well as some cases of fraud and lack of cooperation of some establishments that are built on violating the labor law, as well as the lack of a uniformed inspection elements.
Therefore, the Agency has held a number of workshops, and held meetings with the concerned parties in the Chambers of Commerce, as well as met with business owner and listen to their complaints, conducted a number of field surveys. The agency has also used an independent consulting firm to carry a specialized study. He pointed that the Agency has contacted 752 establishment during the months of August and November 2014, all across Saudi. Those helped visits had helped in achieving a general understanding of the experiences of those companies with the ministry's inspection procedures. It helped as well in identifying the readiness of those companies and inspectors before the inspection process. We were able to detect the behavior of the inspectors during the operation, as well as the extent of companies to amend any violations or irregularities after the inspection.
He added that surveys revealed a number of positive aspects, as well as negative aspects. we have learned that a large number of companies have met the required documents, and that inspectors has been representing themselves properly, and had a vast knowledge of the sectors of those companies. It has revealed as well that some companies are inspected by more than one agency. Moreover, that some companies lack knowledge of the inspection procedures and labor laws. The survey also revealed that some inspectors were not professional, which in turn can disrupt the inspection process. Some inspectors did not provide the needed documents, and that some companies do not know the steps to the inspection process specifically, necessitated a reviewing all previous procedures. He said that 78% of companies have expressed their satisfaction with the inspections, and 81% of them saw it as not to obstruct their work, while 91% of these companies said they had are government agencies. Thus, the Ministry of labor is looking forward to achieve the highest satisfaction rate, and to cooperate with other government agencies to reduce the burden of inspection on the companies.
He assured that the ministry is keen on developing inspection work. He pointed out that there are several projects for this purpose, including a wage protection program, Automated System for inspection, and system-oriented inspection. Moreover, there is a training program for inspectors as well as developing inspection visits mechanism. Also, developing the self-evaluation system and the introductory guide for the labor law for establishments. He stressed that all inspection visits utilized a system that sends a text message on the outcome of the visit of the owner of the establishment immediately after the visit, and this is what helps us to directly monitor the data and analysis for each inspector.
Another workshop was held in Asharqia chamber yesterday afternoon, Monday (8/31/2015). It discussed the wages protection program Abdullah Abu Thunain, deputy minister for inspection and improving work environment represented an introduction to this program. He introduced it its advantages, and it mechanism, and said that it will monitor the payment of wages for all employees and workers in the private sector enterprises, in order to reduce the wage differences between enterprises and employment in the private sector, and measure their commitment to these enterprises to pay wages on time and the value agreed upon.
He added that there are numerous benefits for this program, for instance is ensuring wage disbursement without delay, documenting workers rights, safety in financial transactions, and building a database that can be utilized organizing of the labor market. He assured that the ministry is keen on maintaining confidentiality when applying this system. The ministry has begun implanting the first phase in the 25/10 1434 on facilities that has 3000 worker and more. And the second phase in 28/01/1435 on facilities that has 2,000 workers or more, the third phase on 04/29/1435 for facilities that has 1,000 workers and more, and The fourth stage in 01/08/1436 (for 500 workers and more). The fifth stage was on 04.12.1436 (for 320 worker and more), and sixth stage on 12.6.1436 (240 workers and more), seventh stage in the 14/8 / 1436 (170 workers and more), eighth in 16.10.1436 and the stage (130 workers and more). The ninth stage is expected to take place on (01/19/1437) on facilities with 100 workers or more.
He revealed that a number of facilities did not submit the wages information to the ministry, which subjects them to a penalty. In the case of one-month delay, the Ministry will conduct a full inspection visit, and ceasing the ministry services (except issuance and renewal of work permits service). If the delay lasted for two months, the punishment would be doubled, workers will be allowed to transfer their services to another employer without the consent of their current owner of the facility, even if the work permit was valid, which is the case of three months delay.
