The Ministry of Labor plans to introduce a new law that would punish visa dealers as human traffickers.

Speaking at a business forum at the Riyadh Chamber of Commerce and Industry (RCCI) on Thursday, Abdullah Abu Thunain, undersecretary for inspections, said the ministry had found 8,000 firms involved in irregularities since the inspection campaign began two months ago.

He said the inspection campaign would continue with about 1,000 trained inspectors.

Since the launch of the ministry’s programs, the number of Saudis registered with the General Organization for Social Insurance (GOSI) jumped from 623,000 to 1.4 million and the number of companies entering the “safe zone” rose by 86 percent.

About 50 percent of these companies were categorized in the Red Zone before the inspection campaign started, the official said.

Abu Thunain admitted that the Saudi labor market faced challenges in three areas — temporary hiring of Saudis to get the ministry’s services, bogus employment and visa-selling transactions.

He said companies not paying the salaries of employees under the Wage Protection Program (WPP) would be penalized, and all services suspended if salaries are delayed for three months.

The WPP is currently being applied to firms employing 3,000 workers, but will be enforced in other firms, and gradually include firms employing 100 workers by the beginning of the new year. All banks are ready to apply the WPP in coordination with the Saudi Arabian Monetary Agency, he said.

The official said 80 percent of inspections are meant to guide firms with the exception of issues related to feminization, false employment and illegal workers.

Fahad Al-Tukhaifi, assistant undersecretary for development, said the ministry would penalize firms involved in irregularities. A first-time offender would be given guidance, then a written warning, followed by the firm being placed in the Red Zone, and finally fines.

He said the ministry had ensured firms employed 454,000 women over a three-year period compared to 50,000 registered with GOSI earlier. However, the ministry needs to do more because there was still a high rate of unemployment among women, he said.