Important Updates from the Ministry of Labour

By November 24, 2019News

The Ministry of Labor and Social Development will stop its’ e-services for establishments whose registered commercial activities are not aligned with their actual activities. This measure aims to protect the business sector from infringing establishments, achieve fair competition, and regulate and improve the labour market environment. This, in turn, will make the market more responsive to Saudization programs. 

Business owners can update their commercial records with the Ministry of Commerce and Investment if they need to.

Medium and large sized enterprises were also asked to self-assess their services in comparison with their registered services and have been given 3 months to rectify any discrepancies. 

The self-assessment phase is the first stage of the program where companies must complete the online criteria. The evaluation has 17 criteria, including 5 standards related to enterprises, 6 standards related to employees and 6 related to the employment of special categories. Companies that do not comply with the evaluation within the time period will no longer have access to the Ministry of Labour’s e-services.

Large enterprises must perform the self-evaluation before the end of November and medium-sized enterprises before January 23.

ClassificationClassification criteria
Extra small enterpriseLabour force of 1-5 or sales less than SAR 3 million
Small enterpriseLabour force of 6-49 or sales of more than SAR 3 million and less than SAR 49 million
Medium sized enterpriseLabour force of 50-249 or sales of more than SAR 40 million and less than SAR 200 million
Large enterpriseLabour force of 250-500
Extra large enterpriseLabour force of more than 3000

The ministry explains that the program aims to ensure the integrity of these facilities and give companies the chance to become compliant before the inspectors visit the enterprises. Companies can begin the self-evaluation process through the Ministry of Labour website.

For support throughout this process, contact us on +966 11 411 1127 or info@proven-sa.com.

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