Wage protection program targets coverup businesses

The Labor Ministry said on Sunday that a number of companies have started implementing its wage protection program, which becomes mandatory on Sept. 1 for companies employing 3,000 or more workers, as well as private schools.
Saudi and foreign private schools need to abide by the new rule irrespective of the number of employees on their payroll, said Deputy Labor Minister Abdullah Abuthnain.
“This program will help reduce labor issues and increase workers’ productivity. It will also help us uncover fake firms, fight cover-up businesses and get rid of excess labor,” he said.
Companies and schools must submit complete details of wages paid through banks to the ministry via its website (emol.gov.sa).
“The program aims at ensuring that all Saudi and expat workers at private firms received their salaries as per their contracts.”
The ministry will compare the wage payment list submitted by companies with the data they already have, said the official.
“The move aims to streamline the Kingdom’s labor market, removing discrepancies and creating a secure and stable atmosphere for workers,” he said.