SALARY DELAY FINES COMPANY WITH SAUDI RIYAL 3000/-
Ministry Of Labor in Saudi Arabia announced a penalty fine of SR 3000/- For those employers or companies who delays the salary payment of their Saudi and expatriate employees. This penalty will be imposed, if the ministry found salary delays as per wage protection system Saudi Arabia or if someone lodged a complaint on salary delay in Labor ministry office.
Saudi Arabia Labor Ministry implemented WPS to protect the rights of their citizen and expatriates employees and to track there will be no salary payment delays. In the year 2015, Ministry already stopped services like profession change, transfers for private companies as they delayed salary for more than 274 workers.
If a company fails to submit its salary data in wage protection system for two or more months, then the services related to that company will be stopped, And the employees of that company are able to transfer to another company. Employees can transfer to another company in certain conditions read in this article "Tanazul without kafeel approval".
Recently GOSI (General Organization for Social Insurance) announced it will penalize a company with SR 10000/- If they did not enroll the employee or workers in the system, As it is noticed employers are excluding their employees from enrolling into the system.
Ministry of Labor implemented phases of wage protection system in Saudi Arabia starting from the year 2013 for the companies with employees 3000 or more, Till 2015 Ministry implemented 8 phases, 9th phase is about to implement on Feb 1, 2016 for the companies whose employees are in between 11 to 100. Detailed phases of wage protection system Saudi is explained in this article "Wage Protection System Saudi Arabia 2015".