Saudi Gazette report

RIYADH — The Ministry of Labor has started implementing since last Sunday the fifth phase of the Wage Protection System (WPS) for private companies and establishments with 320 employees or more.



Abdullah Abu Thunain, deputy minister for inspection and work environment development, said that there are 1,195 firms under this category.



He said the sixth phase of WPS will be implemented from April 1 and this covers firms with 240 employees or more, while firms with 170 employees or more will come under the seventh phase, which will come into force on June 1, the Saudi Press Agency reported.



The ministry started implementing the program from Dec. 24,  2012. The first, second and third phases were applied to companies with workforce of 3,000, 2,000 and 1,000 employees or more. More than two million workers in the private sector have already been benefited from the program.



Abu Thunain said the ministry will halt all services except issuance and renewal of work permit for those firms which fail to register details of their employees and their salaries in WPS within two months after starting the mandatory implementation stage.



“In case of failure of giving data within three months, all the services will be stopped and the employees will be allowed to transfer their sponsorship to any other employers without the consent of their sponsors. This will be applicable even to those employees whose work permits do not expire,” he said.



Abu Thunain said the new program aimed at creating a better work environment as well as to address problems related to non-payment or delay in disbursement of salaries and allowances in the employment market.



He said that the ministry is keen on strictly applying the system on all private firms and it is one of the ministry’s means to follow up on the performance of the labor market and ensure disbursing of salaries to workers on time as well as to ascertain the grades of salaries being paid to those working in different trades.



“The ministry has implemented the system with the objective of creating data base containing advanced information about the mechanism for disbursement of salaries in the private sector and guaranteeing the promptness of these firms on payment of salaries on the basis of contractual obligations, and delivery of online salary statement from local banks matching with the salary of employees registered under WPS.”