The Ministry of Labor says private companies failing to pay their workers on time will face tough penalties including loss of government contracts, a local newspaper reported on Tuesday.
The ministry would also suspend all its engagements with violating companies, the newspaper reported.
The measures come in the wake of increasing complaints from workers, particularly in the cleaning and construction sectors, that their employers are not paying their salaries and other dues on time.
There are 800,000 small and large private sector companies in the country, employing 4.6 million expatriates and 973,200 Saudis. A total of 86 percent of the expatriate workers earn low salaries that Saudi workers will not accept.
The report stated that salary payment delays harm workers, the private sector and the country’s national interests.
The ministry has prepared a list of companies that do not make punctual wage payments.
The list will be consulted when contractors are classified and new contracts awarded.
The ministry is currently working on a wage protection system mandating every company to deposit their workers’ wages in their personal bank accounts.
“The system of salary payments through banks will enable the Labor Ministry and other related departments to monitor payments.”
If delays are identified, the ministry would take legal action against the companies involved, the report stated. It was a religious duty to pay wages on time, the report said.
The system would also help identify bogus workers as part of the implementation of the Nitaqat system.
The payment of wages through banks would also stop the remittance of illegally earned money through cover-up businesses.
No govt contracts for tardy paying employers
