COMMERCIAL

Saudi private establishments face fine in case of delayed salary, end of service benefits payment

image used for illustrative purpose.\\r\\nSaudi officials count ballots at a polling station at Prince Salman center in Riyadh .\\r\\n , Reuters Images/Fahad Shadeed
image used for illustrative purpose.\\r\\nSaudi officials count ballots at a polling station at Prince Salman center in Riyadh .\\r\\n , Reuters Images/Fahad Shadeed
image used for illustrative purpose. Saudi officials count ballots at a polling station at Prince Salman center in Riyadh .
Reuters Images/Fahad Shadeed
Establishment will be fined SR15,000 if the establishment does not have emergency exits and rescue equipment including fire extinguishers
PHOTO
image used for illustrative purpose. Saudi officials count ballots at a polling station at Prince Salman center in Riyadh .
 

JEDDAH — The Ministry of Labor and Social Development will levy a fine of SR 3,000 per staff member on any private establishment for not paying its employees monthly salaries on time.

Sources in the ministry said the establishment will be fined SR10,000 for each employee in case end of service benefits (ESB) is delayed by a maximum period of two weeks.

Sources said private establishments will also be fined if they pay their workers in currencies other than Saudi riyals or withhold the worker's salary or part of it without any legal justification.

The ministry will also fine any private establishment a sum of SR25,000 if it fails to allocate special work places for women and SR20,000 if they did not provide enough security guards.

A establishment will be fined SR15,000 if it employs less than two women in each shift and the same amount if the establishment does not have emergency exits and rescue equipment including fire extinguishers.

The ministry warned that heavy fines will be applied on establishments which employ workers without written and documented work contract, if they make their staff work for more than eight hours a day or refuse to give them their weekly off days or annual vacations.

According to Article 90 of the Labor Law, the payment of the worker´s wages shall be in Saudi Arabia's official currency. When it is necessary, and upon a proposal by the Ministry of Labor, the Council of the Ministers may set a minimum wage according to Article 89 of the Labor Law. According to Article 90 of the Labor Law, the wages shall be paid during working hours and at the workplace or, with the consent of the worker, through accredited banks in the Kingdom.

© Copyright 2019 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

ZAWYA NEWSLETTERS

Get insights and exclusive content from the world of business and finance that you can trust, delivered to your inbox.

Subscribe to our newsletters:

Find companies