Saudi Gazette report

 

RIYADH — The Ministry of Labor has suspended its services from 14 companies for up to two years for registering Saudis not actually working for them to get around Saudization quotas.



The aim of the practice is to increase the rate of Saudization in the company to earn benefits such as housing and transportation from the ministry’s Nitaqat program, which aims to increase the number of nationals in private sector jobs.



The registered Saudi citizens did not know these companies had used their identities, said a ministry spokesman.



The ministry has banned these companies from applying for work visas for expatriates and transferring employees from department to department for up to two years. They are also not eligible for funds from the Human Resources Development Fund.



The companies have also jeopardized their victims' social insurance status, said the spokesman.