The Labor Ministry has launched a wage protection program for workers of mega companies having 3,000 or more employees.
“We have started implementing first phase of the program on Saturday,” a ministry official said. Under the program companies have to report payment of salaries to their employees through the ministry’s website.
“It will be made mandatory from Sept. 1,” the official said. The ministry monitors payment of salaries to both Saudi and foreign workers in the private sector.
The program comes as part of the ministry’s ongoing cleanup operation for the labor market. “We want to make sure the companies pay workers salaries on time and in accordance with contracts,” the official said.
“We’ll follow closely the payment of salaries and other benefits to employees,” the official said. “We have introduced the system to enhance confidence about the labor market and contain foul play,” he added.
Akbar Batcha, a business executive, welcomed the move and urged the ministry to focus on those companies that do not pay salaries to workers, especially contracting firms.
However, he said implementation of the program on small firms would take time as many of their employees have not signed contracts and have no bank accounts. Batcha also called upon the government to extend the grace period.