MOL: Expat workers can seek new sponsors if denied salary

MOL: Expat workers can seek new sponsors if denied salary
Updated 16 February 2014

MOL: Expat workers can seek new sponsors if denied salary

MOL: Expat workers can seek new sponsors if denied salary

The Ministry of Labor has warned of strict action against business organizations that fail to comply with the new wage protection system, the second phase of which will be implemented next month.
Munif Al-Harbi, director of Wage Protection System in the Ministry of Labor in Jeddah, said under the new system, any business organization which has more than 1,000 employees on its rolls, must adopt the new system under which salaries of employees are required to be paid through banks in a prescribed format.
Any employee who is not paid salary for three months will be free to transfer his sponsorship without the consent of defaulting employer, he said.
Al-Harbi, speaking at a workshop on the new wage protection system at the Jeddah Chamber of Commerce and Industry (JCCI) on Thursday, emphasized that the new system was brought in to protect the rights of both employer and employee. He also warned that authorities will constantly monitor the new wage system implementation by employers and advised them to open bank accounts for employees without delay.
The official explained: “Every month, once the wages are deposited with the banks, the Ministry of Labor will receive copies.” By 2015, all business houses irrespective of the number of employees will have to apply the wage protection system, he added.
Faisal Al-Otaibi said the Saudi Arabian Monetary Agency (SAMA) and the Labor Ministry are monitoring the wage system, and efforts are on to link the system with the Ministry of Interior and other ministries to ensure transparency.
He said that all employers including foreign firms employing workers in the Kingdom will have to disburse salaries in Saudi riyal only.
Abdul Aziz Dahmash, representative of SAMA, said: “All Saudi banks have wage protection system and the wage cards of employees are like regular ATM cards for all banking purposes, which have to be renewed on expiry.