Expats working in Saudi Arabia for firms with government contracts are finding their employers want to sack them to take on local workers.
The Saudi government appears to be exerting pressure on employers not to renew expat contracts.
The move is part of the government’s Nitaqat policy to replace the nation’s huge expat workforce with Saudi workers.
The driving force behind the policy is the kingdom fears an Arab Spring backlash against the ruling royal family from disenchanted young Saudis.
This new generation are well-qualified after a university education, but have found employers increasing look past them to cheaper foreign labour.
Contracts cancelled
Hussain al Qahtani, of the Presidency of Meteorology and Environment, explained many firms working on short contracts with the organisation will not transfer expat worker sponsorships to other employers or renew their contracts.
Effectively, this stops an expat working in Saudi Arabia and means they should leave the country to avoid breaking strict immigration laws.
The government is fining companies and expats breaking the rules, although some employers are allegedly ignoring Nitaqat laws.
To counter this, the Ministry of Labour is sending inspectors to companies for site visits to check expat visas and sponsorships.
Some expats have been offered jobs on government contracts, but have waited months for the paperwork to complete.
Meanwhile, a new salary protection law is due to start on September 1 for companies with 3,000 or more workers and private schools, regardless of the number of employees they have.
The aim of the law is to make sure expats are paid the correct salaries according to their contracts.
Salaries protected
The payments must be notified to the Ministry of Labour, who will compare bank payments with contract terms.
From September 1, 2013, all salary payments must be paid through a bank and electronically notified to the Labour Ministry.
“We want to continue to streamline the labour market,” Deputy Labor Minister Abdullah Abuthnain. “Too many firms are creating an insecure and unstable environment for workers.
“This new law will decrease the number of disputes over money and should take stresses over money away from workers and make them happier and more productive at work.
“This also gives us an opportunity to deal with firms that break the law and cause problems.”
The minister also announced a crackdown on midday working during the summer.
Businesses must close between noon and 3pm or face fines, a 30-day closure or even a permanent shut down.
