<The Minister of Labor, Engineer Adel bin Mohammed Fakih, expressed his thanks to the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud, following the Cabinet's approval - at its session on Monday - to exempt small enterprises (9 workers or less) from paying the financial compensation (2,400 riyals per year) for four expatriate workers, if the owner is dedicated to working in them. The decision to exempt small enterprises (9 workers or less) from paying the financial compensation (2,400 riyals per year) for four expatriate workers, if the owner is dedicated to working there, and the decision to form a ministerial committee to study within (3) months the compensation of enterprises that entered into contracts with the state before (1/1/1/1434); the date of application of the decision to approve the financial compensation on the expatriate worker.
The Cabinet decision stipulated that a small establishment with a total of nine or fewer workers, including its owner, shall be exempted from paying the financial compensation (2,400 riyals per year) for four expatriates working in it, if the owner is full-time, provided that he is not registered as a worker in any other establishment, as well as exempting a small establishment -with a total of nine or fewer workers, including the owner, from paying the fee for non-Saudis married to Saudis and their children, workers from nationalities exempted from deportation or others, according to the criteria approved by the Ministry of Interior.
The Minister of Labor stressed that exempting small enterprises from the financial compensation (2,400 riyals per year) for four expatriate workers, provided that the owner is dedicated to working in them, will contribute positively to improving the situation of this type of enterprises and give them a greater opportunity to develop their business, after the financial exemption is reduced, which gives this sector a stronger push for its stability and growth, which indicates the interest of the government of the Custodian of the Two Holy Mosques in the business sector and its great support that stems from the belief in the effectiveness of Saudi business owners, if they are dedicated to managing their enterprises.
The Cabinet decision issued today, which was based on the recommendation of the Minister of Labor, also included the formation of a committee that includes representatives from the Ministry of Finance A committee comprising representatives from the Ministry of Finance, the Ministry of Commerce and Industry, and the Ministry of Labor will be formed within a period not exceeding three months from the date of today's decision (8/25/1435) to set the foundations, rules, requirements and mechanisms for the Human Resources Development Fund to compensate enterprises that entered into contracts with the state before (1/1/1/1434H), the date of the implementation of the Council of Ministers No. (353), regarding the establishment of the financial compensation for expatriate labor that exceeds the number of Saudis in the establishment, as well as the enterprises that submitted bids before this date, were awarded, and entered into contracts with them -subsequently contracts without adjusting the cost resulting from the implementation of this decision, in an amount equal to the amount paid by an establishment for its expatriate workers, which exceeds the number of Saudis, for the original duration of the concluded contract only, provided that the compensation for the two cases referred to shall be after the end of the contract implementation, in accordance with two conditions. The first is that the expatriate labor for which the financial compensation was paid is associated with the contracted government projects, while the second requires the settlement of the labor associated with the project after the end of its implementation period, either by proving their departure or transferring them to another government project, or any other settlement determined by the committee, as required by the public interest.
The Cabinet decision stipulated that a small establishment with a total of nine or fewer workers, including its owner, shall be exempted from paying the financial compensation (2,400 riyals per year) for four expatriates working in it, if the owner is full-time, provided that he is not registered as a worker in any other establishment, as well as exempting a small establishment -with a total of nine or fewer workers, including the owner, from paying the fee for non-Saudis married to Saudis and their children, workers from nationalities exempted from deportation or others, according to the criteria approved by the Ministry of Interior.
The Minister of Labor stressed that exempting small enterprises from the financial compensation (2,400 riyals per year) for four expatriate workers, provided that the owner is dedicated to working in them, will contribute positively to improving the situation of this type of enterprises and give them a greater opportunity to develop their business, after the financial exemption is reduced, which gives this sector a stronger push for its stability and growth, which indicates the interest of the government of the Custodian of the Two Holy Mosques in the business sector and its great support that stems from the belief in the effectiveness of Saudi business owners, if they are dedicated to managing their enterprises.
The Cabinet decision issued today, which was based on the recommendation of the Minister of Labor, also included the formation of a committee that includes representatives from the Ministry of Finance A committee comprising representatives from the Ministry of Finance, the Ministry of Commerce and Industry, and the Ministry of Labor will be formed within a period not exceeding three months from the date of today's decision (8/25/1435) to set the foundations, rules, requirements and mechanisms for the Human Resources Development Fund to compensate enterprises that entered into contracts with the state before (1/1/1/1434H), the date of the implementation of the Council of Ministers No. (353), regarding the establishment of the financial compensation for expatriate labor that exceeds the number of Saudis in the establishment, as well as the enterprises that submitted bids before this date, were awarded, and entered into contracts with them -subsequently contracts without adjusting the cost resulting from the implementation of this decision, in an amount equal to the amount paid by an establishment for its expatriate workers, which exceeds the number of Saudis, for the original duration of the concluded contract only, provided that the compensation for the two cases referred to shall be after the end of the contract implementation, in accordance with two conditions. The first is that the expatriate labor for which the financial compensation was paid is associated with the contracted government projects, while the second requires the settlement of the labor associated with the project after the end of its implementation period, either by proving their departure or transferring them to another government project, or any other settlement determined by the committee, as required by the public interest.
