Punishment for fictitious Saudization
The punishment of fictitious Saudization: Saudization is one of the most important basic pillars adopted by the Kingdom of Saudi Arabia to regulate the labor market and reduce unemployment rates among citizens as a main goal. However, some establishments in the private sector resort to circumventing this national trend through what is known as ”fake Saudization”, which is considered a serious violation of the labor system and the regulations in force, and strict penalties have been imposed on it to protect the rights of citizens and regulate the Saudi market.
First: What is meant by imaginary Saudization?
Fake Saudization is defined as an establishment registering the names of Saudi citizens in the social insurance system as its employees who work officially, without there being real work or an existing job relationship between them and the establishment, with the sole aim of raising the localization rate and avoiding the penalties imposed on the establishment.
Second: What is the organization of the regulatory and organizational framework?
Article (39) of the Labor Law stipulates that: “A non-Saudi may not practice work except after obtaining a work permit from the Ministry, and the worker may not work for anyone other than the employer listed in the permit”. The Ministry of Human Resources and Social Development also issued regulations for the Nitaqat program, which links localization rates with the privileges obtained by establishments.
Third: What are the penalties related to fictitious Saudization?
The Ministry of Human Resources and Social Development has imposed several penalties on establishments that practice fake Saudization, including the following:
Financial fines: may reach 20,000 Saudi riyals for each case of fake employee registration, based on the list of violations and penalties approved by the Ministry.
Depriving the establishment of the Ministry’s services: such as renewing work permits, issuing new visas, or changing workers’ professions.
Lowering the facility’s classification in the Nitaqat program: which leads to restricting its employment and contractual capabilities.
Referring the violation to the competent authorities in the event of suspicion of forgery or collusion, which may lead to criminal penalties against the facility and its owner.
Obligating the facility to return government support disbursed to citizens registered in a fictitious manner (such as support from the Human Resources Fund – Goal).
Fourth: Shared responsibility between the establishment and the citizen:
First: The facility:
You bear the primary responsibility for registering citizens without real work.
Second: The citizen who is registered in the establishment by mistake:
He is considered an accomplice to the violation and may be punished by being deprived of government support and brought under investigation if proven intentional.
Fifth: What are the legal and social effects of fictitious Saudization?
Distorting the labor market by giving an inaccurate picture of localization rates.
Missing opportunities for real job seekers.
Disrupting national development policies.
Violating the principle of equal opportunities and justice in the labor market.
Sixth: What are the efforts made by the state to reduce this phenomenon?
The Ministry launched a number of electronic initiatives and systems, such as the “Ajir” and ”Qawa” systems, to enhance transparency and monitor the actual relationship between the worker and the facility. It also intensified monitoring and field campaigns on facilities to monitor fake Saudization and take measures against violators.
In addition, the Ministry of Human Resources supports local recruitment platforms such as Sabbar, which help provide Saudi citizens and Saudi companies alike with good opportunities to employ national cadres, as it provides citizens with jobs for Saudis in various sectors, and provides Saudi companies with Saudi employees looking for work, which reduces the resort to fictitious localization and effectively achieves the goals of the Nitaqat program.
How can Abdul Majeed Al Rashid Law Firm Legal Consultations help you with fake Saudization?
If your facility faces accusations of fictitious Saudization or wants to avoid them, the office of lawyer Abdul Majeed Al-Rasheed provides legal advice through lawyers specialized in the Saudi labor system. We help you appeal imposed penalties, present legal defenses, and prepare a strong defense strategy before the competent authorities. We also provide preventive consulting services to ensure your company complies with localization regulations and protects it from future legal risks.
Punishment for fictitious Saudization
In conclusion
Fake localization represents a clear violation of the system that may affect a sustainable economy and a vibrant society. Therefore, combating this phenomenon is a national necessity, requiring concerted efforts between government agencies, the private sector, and citizens themselves, to achieve an organized and fair labor market for all.
Some frequently asked questions about fake Saudization:
Is fake Saudization punishable by imprisonment?
Yes, the penalty for fictitious Saudization can include imprisonment in certain cases, as the violation is referred to the competent authorities in the event of suspicion of forgery or collusion, which may lead to criminal penalties against the facility and its owner
What is the fine for fictitious localization in social insurance?
The penalty for fictitious localization begins with imposing a fine in the amount of subscriptions + 300 riyals for each subscriber if the number of subscribers subject to the violation is 1:3 in the facility. It may reach 20,000 Saudi riyals for each case of fake employee registration
Is hiring without insurance against you?
Yes, as social insurance stipulates that registering a worker without a work relationship results in imposing a fine of up to twenty thousand riyals, and in the event that any unreal work relationship is detected with the establishment, the penalties stipulated in the insurance system will be imposed.
How do I report fake Saudization in a facility?
To report fake Saudization, please send an email to the following address with all details: ([email protected])
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