The Good News was came from SAMA (Saudi Arabian Monetary Agency) and MOL when they announced to track down employer who delay salaries of workers and to protect major right of workers salaries by implementing WPS system. This system aims to make employer to follow the laws and terms stated in Labour Contract hence those who violate may face heavy fines and restriction.
According to this System companies should implement this with 2 months after it made compulsory, and must have to submit information to MOL via internet if they fail to do so,
- MOL will restrict their services except issuance and renewal of Work permits
- Company employee allowed to change or transfer to new company with taking permission from current sponsor.
Private Sector Should Register with WPS and Requires to
- Submit the wage related details to MOL and Salaries Paid to Workers using E service System
- Must have to create pay roll account online with local bank.
- Haveto pay wages through proper local bank channels
Salary DelayFines:
MOL Already announce SAR 3000 fine on employers for each case of delay salary, while according to WPS system if employer not giving salary to worker for 2 months their services will be restricted except of work permit renewals.
Moreover those who delaying salaries for 3 month, it will be terminated to give work permits and expat employee will transfer to new employer without any kind of permission.
Wage Protection System is implemented PHASE by PHASE here is summary:
Started in June 2013
September 2013: Become mandatory requirement for companies which has above 2000 employees.
December 2013: Become mandatory requirement for companies which has above 1000 employees.
November 2014 : Also Become mandatory requirement for companies which has above 500 employees.Year 2015:
December 2013: Become mandatory requirement for companies which has above 1000 employees.
November 2014 : Also Become mandatory requirement for companies which has above 500 employees.Year 2015:
February 2015 : Mandatory requirement for companies which has above 320 employees.
April 2015 : Mandatory requirement for companies which has above 240 employees.
April 2015 : Mandatory requirement for companies which has above 240 employees.
June 2015: Companies with over 170 employees.
August 2015: Companies with over 130 employees
Nov 2015: Become Mandatory requirement for companies which has above 100 employees
Year 2016:
Feb 2016: Wage Protection System made mandatory for the companies having employees more than 11 – less than 100