The Ministry of Human Resources and Social Development in Saudi Arabia revealed, in a statement, today, Thursday, the launch of a package of initiatives to support private sector establishments and entrepreneurs and the adoption of a number of amendments.
The Minister of Human Resources and Social Development, Eng. Ahmed bin Sulaiman Al-Rajhi, issued a decision to adopt the new schedule of violations, in order to keep pace with the continuous changes and updates in the labor market, as this decision comes within the initiative to develop compliance tools launched by the ministry at the end of 1442 AH.
The draft decision was put up last year on the “Estiqla” platform to take the opinions of the public and government agencies for a month since the date of 07/11/1442 AH, after studying the reality of the Saudi labor market and aligning with the private sector in coordination with the Chambers of Commerce.
The decision aims to develop existing systems and regulations in a way that contributes to reforming the labor market, developing the private sector, supporting entrepreneurs, creating a stimulating and sustainable work environment for workers, and supporting the Emiratisation process.
The decision takes into account the appropriateness of the financial fines resulting from the violations to the size of the facility and the gravity of the violation, as the decision classified the establishments into three categories according to the number of their employees, to include category (A) establishments employing 51 or more workers, and category (B) establishments whose number of employees ranges between 11- 50 workers, and category (C) establishments employing 10 workers or less.
The decision specified fines based on the level of the severity of the violation and its impact on the labor market, in order to preserve the rights of workers and provide an attractive work environment.
As an extension of the ministry’s endeavor to create an attractive labor market, the ministry launched a package of initiatives to support private sector establishments and entrepreneurs. The package targets all establishments and entrepreneurs and is represented in:
• Reducing the value of the fine for the violations that were seized during the first visit in which violations were detected (whatever the number of violations were) by 80%.
• Extending the grace period for requesting settlement of all violations and raising the reduction rate to 80% in return for hiring a Saudi for each violation.
• Be satisfied with the guidance of emerging establishments and entrepreneurs during the first year from the beginning of practicing the first activity, and continue to provide advice and guidance.
• Launching the “Establishment Site Management” service on the Qiwa platform, through which the establishments’ commitment to localization is measured electronically.
The ministry explained that the launch of these initiatives coincides with the entry into force of the ministerial decision from the date of its publication in the Official Gazette, and that it reviews and updates the schedules of violations and penalties whenever the need arises in accordance with the requirements and requirements of the labor market.
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