Ministry of Human Resources Launched Initiatives Supporting Private Sector’s establishments, entrepreneurs

As an extension of the ministry’s endeavor to create attractive labor market environment

 Ministry of Human Resources Launched Initiatives Supporting Private Sector’s establishments, entrepreneurs

Minister of Human Resources and Social Development, Eng. Ahmed Al-Rajhi issued a decision to adopt the new schedule of violations, to keep pace with the continuous changes and developments, in the labor market, as part of the initiative to develop compliance tools, launched by the ministry at the end of 1442 AH, where the draft decision was presented last year on the ministry’s platform. The point is to take the opinions of the public and government agencies for a period of one month, 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 process of Saudization.

The number of its employees, to include category (A) establishments employing 51 or more workers, category (B) establishments whose number of workers ranges in between 11-50 workers, and category (C) establishments employing 10 workers or less.

The decision specified fines based on the level of severity of the violation and its impact on the labor market, 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, by extending the period of allowing the request to settle all violations and raising the reduction rate to 80% in return for hiring a Saudis for each violation – and only providing guidance to emerging establishments and entrepreneurs during the first year from the beginning of practicing the first activity, and continuing to provide advice and guidance, and launching the “establishment site management” service on the Qiwa platform, through which the establishments’ commitment to localization is measured electronically..

This 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 needs of the labor market