Fatima Muhammad
Saudi Gazette
JEDDAH — The Ministry of Labor is tightening screws on companies and establishments falling in the “yellow” category in the Nitaqat system of Saudization of jobs.
Starting the new Hijra year (Oct. 25), these companies will be allowed to renew the iqamas (residence permits) of their employees for only four years as opposed to the six-year period allowed now. Six months later, i.e. after April next year, the ministry will restrict renewal of iqamas of these companies to two years only.
The ministerial decision is aimed at sternly warning companies in this category to seriously take measures to employ more Saudis and and meet the requisite Saudization standard to move from the yellow into the green or platinum zone.
Taysir Al-Mufaraj, head of the media center at the Ministry of Labor, said the new measure will deprive companies in the yellow zone of renewing iqamas of their employees who have been staying in the Kingdom for four years regardless of the time of their employment in the erring company.
The ministry will calculate the period starting from the first day of an employee getting a license to work in the Kingdom, he said.
The ministry has already identified a number of services that cannot be provided to companies both in yellow and red zones. This includes not getting new visas, not allowing them to have any new expatriate employee transferred to their sponsorship and not allowing new job titles in the company.
Expatriates in these companies are, however, allowed to transfer sponsorship to other establishments in higher zones.
For companies wanting to move into safe zones, Al-Mufaraj said, they have to employ the required number of Saudi nationals. This, he said, can be achieved through the Human Resource Development Fund (HRDF) which helps companies find suitable candidates and holds meetings felicitating employments of Saudis.
Besides providing financial assistace to companies employing nationals, the HRDF also provides on-the-job training to Saudi youth, Al-Mufaraj added.
