RIYADH: The National Committee for Contractors (NCC) at the Council of Saudi Chambers (CSC) and representatives from the Ministry of Labor denied on Sunday delays in releasing SR2,400 in compensation to contractors once the criteria have been finalized.

As part of its Saudization drive, the Ministry of Labor (MoL) decided years ago to raise the ratio of Saudi workers at all companies. For each worker, SR2,400 will be paid yearly by those who fail to meet the ratio, but the ministry changed its mind due to the nature of government projects under contracting firms that require a large number of skilled foreign workers.

According to NCC Assistant Secretary General Mushabab Al-Saad, media statements issued by members of the commission are not considered official unless they are from the NCC president, as based on the committee bylaws.

The committee made its observation during its meeting at CSC attended by the MoL’s undersecretary for customer services and labor relations, Ziad Al-Sayegh, and Ibrahim Al-Mouaikel, the head of the Human Resources Development Fund (HRDF) in presence of a number of ministry officials, representatives and members of the NCC.

The meeting discussed eligibility criteria and the mechanism of application to compensate contractors for the decision to raise foreign worker card fees to SR2,400. They also tackled Saudization ratios cross-platform at government projects and the mechanism for issuing visas to contractor to keep it within safe ranges.

The committee has urged developers and contractors to speed up the new procedures for issuance of support through the ministry’s website for government projects.

They were also requested to provide all necessary information to educate investors on the construction ministry’s systems and its facilities designed for investors in this sector, notably the eligibility criteria and application of the compensation mechanism.

The meeting decided to provide the NCC disbursement provision of compensation to be circulated to the chambers of commerce. They will also organize awareness workshops about compensation procedures, and discuss observations and suggestions with the participation of officials and human resources.

The foreign worker card fee was previously announced two months ago by the HRDF, and lasts for six months.

In the initial stage, constructors have to submit applications by accessing the system, and fill out a compensation form, while in the second phase applications are reviewed and verified.

In the third phase HRDF will deposit financial compensations into contractors accounts for those who have completed the terms and conditions.