The Finance Committee at the Shoura Council has supported the inclusion of penalties and defamation against companies who exploit the names of citizens for bogus employment to evade Saudization quotas.
The committee confirmed that many employers have been illegally using the names of citizens and registering them under GOSI without their knowledge in order to achieve required Saudization quotas and avoid a maximum fine of SR5,000.
The committee called for increasing the fine to SR10,000 and doubling the fine if violations are repeated.
In its report, the committee detailed the grave consequences of such fraudulent acts by employers who exploit citizens and use their names for bogus employment purposes, which in turn damages the financial position of the Social Insurance Fund and harms beneficiaries.
In response, the committee is proposing an amendment of Article 62 of the Social Insurance Regulations to include the defamation of employers that violate the regulations by registering ghost workers, as well as denying the right for these employers to be paid back any paid contributions, or enforcing them to pay outstanding balances. The penalty for violations that result in unjust compensation is to amount to the value of the compensation amount, while violating companies would be required to refund the paid amount.
The proposed amendments are scheduled for discussion by the council on Monday, including a decision to publish details about the offenses and penalties of employers in a local newspaper at the expense of the offender.
Higher penalties sought for bogus employment
