04/04/2012
Labor ministry monitors firms delaying salaries
By RIYADH: ABDUL HANNAN TAGO
Published: Mar 30, 2012 00:11 Updated: Apr 1, 2012 00:26
The Ministry of Labor has confirmed it will start monitoring private sector enterprises that delay payment of wages to their employees.
Deputy Minister of Labor Dr. Moufarrej Hagbani emphasized the ministry would take firm and fair action when necessary. He said the ministry has noted some delays in the payment of wages by some establishments to workers.
He added such practices are punishable under labor law, and it was a religious obligation to ensure any worker’s salary is paid on time.
Hagbani said the ministry would prepare a list of organizations that have delayed payment of wages. The list includes the names of the violators and their offenses.
The minister said his ministry is currently working to implement regulations to ensure wages are paid on time. Each establishment will have to pay workers’ salaries through bank accounts.
This will enable the labor minister and other officials to follow up any discrepancies. The ministry reaffirmed that it will deal with any violation and take necessary legal action against violators.
The ministry has urged all firms to ensure their finance departments regularly pay all dues to their employees.
Commenting on the new system, economist Mutashar Al-Murshid said this decision is part of the ongoing organization of the workforce in Saudi Arabia to preserve their rights and also crack down on businesses trying to bypass Saudization regulations by using fake Saudi names. He said paying wages directly into a bank account proves the worker is legitimate.
He said this system will enhance the efforts of the Nitaqat program.
With regard to whether banks are prepared to handle such a system, especially as hundreds of thousands of employees will need to open accounts, Al-Murshid said Saudi banks have the solid infrastructure to cope. He added that questions remain over banks’ internal systems with regard to the procedures of opening accounts.
“There must be cooperation between banks and the Ministry of Labor and Saudi Monetary Agency (SAMA), especially with regard to handling workers on low wages,” he said. “There will be a slight increase in bank deposits. Most employees go through the banking system. I think the increase will be in the number of current accounts. You will need the banks to increase its staff for account management and supervision.”
Delaying the payment of wages is a clear human rights violation that Islam does not tolerate, according to a member of the Saudi Jurisprudence Assembly. Abdulrahman Abdul Aziz Al-Muhrij said safeguarding the rights of people is one of the primary responsibilities of any government.
Expatriates told Arab News they welcomed the Saudi government’s plans and Al-Muhrij’s statements. “We thank the sheikh. But it is important to walk the walk. Go out and stand up for the rights of those whose wages are perpetually delayed. And guess what, most of these will be non-Saudis,” said Abdul Haqq.
Another expatriate in Jeddah, only giving his name as John said: “I am an expat living in Jeddah for the last two years, and they have not paid my salary for the last 10 months. This has put me in a dire financial situation at home and caused hundreds of problems for me and my family and my children’s education.”
Another expatriate, Riaz Murtaz, said: “More than three decades of Saudi history is full of such stories. Still, the system is worth it if properly implemented.”
Hasseb Al-Ansari, told Arab News one of his friends went to London around eight years ago to do his MBA and later got a good job there. One time he did not receive his salary for three weeks and approached his boss, who did nothing. He then approached an accountant in the financial department who had worked in the Kingdom. The accountant said something to the payroll manager, who immediately took the money from his drawer to give to the friend.
Al-Ansari’s friend, who was shocked by these developments, asked the accountant what he had said to the payroll manager. The accountant said he told the manager that this was against their Christian beliefs.
Al-Ansari said construction companies are the worst offenders, with most of them paying after six months. He said he was grateful to Al-Muhrij for speaking out.
Another expatriate, Rolan Rosimo, said he did not receive his salary for almost four months, prompting him to run away. He has been on the run for four years but still hopes the Kingdom will give more equality to non-Saudis.
