Mohamed Akbar | Jul 4, 2011, 02.57pm IST
JEDDAH: New employment nationalization program, 'Nitwaqath', will be in effect in its third phase as on November 26, when the punitive measures against the companies lagging behind in employing citizens would begin, it was announced by the Saudi ministry of labour. The third stage of the program is to assign punishments to the private sector employers who are in the red category, said Ahmad Al-Humaidan, undersecretary for workers' affairs at the ministry.
Under the Nitwaqath system, private sector companies are to be labelled "green," "yellow" or "red" depending on the level of Saudis working for them. Companies in the "yellow" category will not be able to extend their foreign employees' work visas beyond six years while "red" companies will not be able to renew their foreign workers' visas at all.
"Green" companies will be entitled to a number of benefits, such as expedited services for foreign workers' visas and the ability to change the job categories of foreign workers into job categories reserved for Saudis, except for human resources managers, liaison officers, cashiers, receptionists or security guards.
"The first phase of the system that we had started implementing on June 11 involves classification of the companies and giving them a three-month period for improving their Saudization status. The second phase of implementation will begin on September 10, when companies meeting their required Saudization quotas will start enjoying a number of special benefits," Al Humaidan said, while stressing that the Nitwaqath system was only one of the initiatives taken by the ministry to intensify the Saudization drive.
"Punitive measures against companies classified in the 'yellow' category will be effective as on February, 23 at the final stage of the Nitwaqath. Companies are being given grace time to improve their status by hiring more Saudis in place of the foreign workers, failing which will lead to punitive measures," he said.
Al-Humaidan was speaking at a meeting of businessmen at the Chamber of Commerce and Industry in the capital city, Riyadh.
JEDDAH: New employment nationalization program, 'Nitwaqath', will be in effect in its third phase as on November 26, when the punitive measures against the companies lagging behind in employing citizens would begin, it was announced by the Saudi ministry of labour. The third stage of the program is to assign punishments to the private sector employers who are in the red category, said Ahmad Al-Humaidan, undersecretary for workers' affairs at the ministry.
Under the Nitwaqath system, private sector companies are to be labelled "green," "yellow" or "red" depending on the level of Saudis working for them. Companies in the "yellow" category will not be able to extend their foreign employees' work visas beyond six years while "red" companies will not be able to renew their foreign workers' visas at all.
"Green" companies will be entitled to a number of benefits, such as expedited services for foreign workers' visas and the ability to change the job categories of foreign workers into job categories reserved for Saudis, except for human resources managers, liaison officers, cashiers, receptionists or security guards.
"The first phase of the system that we had started implementing on June 11 involves classification of the companies and giving them a three-month period for improving their Saudization status. The second phase of implementation will begin on September 10, when companies meeting their required Saudization quotas will start enjoying a number of special benefits," Al Humaidan said, while stressing that the Nitwaqath system was only one of the initiatives taken by the ministry to intensify the Saudization drive.
"Punitive measures against companies classified in the 'yellow' category will be effective as on February, 23 at the final stage of the Nitwaqath. Companies are being given grace time to improve their status by hiring more Saudis in place of the foreign workers, failing which will lead to punitive measures," he said.
Al-Humaidan was speaking at a meeting of businessmen at the Chamber of Commerce and Industry in the capital city, Riyadh.
