Saudi Arabia to implement final phase of wage protection from Dec 2

The Ministry of Human Resources and Social Development (HRSD) to start the implementation of the final phase of the wage protection system (WPS) from Wednesday.

The Ministry said it had completed the final steps and preparations for implementing the law. In the last phase, enterprises will be obligated to deposit the workers' wages in their bank accounts on time. The law covers institutions ranging from one to four employees. Approximately 400,000 firms employing small numbers subsists in the Kingdom.

Saudi Arabia launched the first phase of WPS in August 2013, covering large-scale private enterprises with 3,000 or more employees. The successive phases of the WPS were implemented gradually, covering small-scale businesses.

An employee can file a complaint to the concerned authority in case of delayed salaries with bank statements as evidence and can apply to transfer sponsorship. The ministry aims to establish an updated wage payment record and to determine the commitment of various institutions towards due payment of wages.

The authorities expect to oversee the process of disbursing wages for all national and resident workers in private-sector facilities. The wage protection law was initiated to facilitate flexibility in the labour laws and regulations of the country.