Firm shut for manipulating laws of Saudization

Firm shut for manipulating laws of Saudization
Updated 05 August 2014

Firm shut for manipulating laws of Saudization

Firm shut for manipulating laws of Saudization

The Labor Ministry has closed down an employment firm for alleged involvement in various malpractices, including swindling money from Saudi trainees and private companies and making up nationalization figures.
The company had signed contracts with a several firms to recruit Saudis after training and instead, used Saudis who are not registered with the General Organization for Social Insurance (GOSI) to enhance nationalization figures.
The company helped firms in the red and yellow categories to up their status to the green zone by employing these Saudis. “All this happened without the knowledge and approval of these Saudi workers,” the ministry pointed out.
The company is also accused of marketing its services to help firms in the red and yellow categories reach safe zones through fake Saudization. It also used the emblems of the ministry, Human Resource Development Fund and Nitaqat without permission, the ministry said.
“The company used the emblems in order to mislead the public,” the ministry pointed out.
The company has been banned from recruiting foreign workers and the resident permits of its employees shall not be renewed. In addition, the company will no longer receive any government loans, the ministry added.