The Ministry of Labor has raised the bank guarantee for Saudi recruitment offices from SR300,000 every two years to SR450,000 every year for the renewal of the license, local media quoted a ministry source as saying.

The source said the ministry has informed labor office branches across the Kingdom of the new regulation.

Recruitment agencies are now obliged to renew their licenses at a time specified by the Ministry of Labor. Delays in the renewing of the licenses will entail penalties which will be set out by the ministry later, according to the source. But it was made clear that recruitment offices which fail to renew their licenses will be unable to operate normally.

He also pointed out that the Labor Ministry has withdrawn a number of powers given to recruitment offices such as the hiring of labor which will now be done by recruitment firms.

Regulations of the labor system stipulate that applicants for the license should provide a bank guarantee of SR300,000 payable at any time in case of inability or reluctance to fulfill the rights of workers; cover their deportation expenses; or in the event of failure to repay sums obtained from customers acting as brokers for recruitment.

According to the new regulations, the offices are also allowed to mediate in the recruitment of non-Saudi workers from abroad, including domestic help.

The offices may recruit workers on behalf of the owners of temporary businesses who cannot hire labor on their own account.

The applicants for the license must also manage their own offices except when they need to travel in which case they need to make arrangements for a Saudi delegate to do the work on their behalf.