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Apr 25 2012

Penalty set for firms with excess foreign workers

All companies in the private sector would have to make a non-refundable monthly payment of SR200 to the Human Resources Development Fund ( Hadaf ) for every foreign worker who is in excess over the number of Saudi employees, local daily Al-Madinah reported Monday quoting an official source. It said the directives to the effect were issued by high authorities but gave no further details.

The source said the move was aimed at increasing the costs of employing foreigners and also at boosting the resources of the fund.

He said the payment of the monthly fees was necessary for the issuance or renewal of work permits for foreigners.

The Nitaqat program of the Labor Ministry compels the private sector to employ more Saudi men and women. Hadaf contributes to the Hafiz program, which extends monthly payments to unemployed Saudis.

© Arab News 2012

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