The Saudi Arabian government has adopted stringent measures against institutions and individuals who misuse support provided for employing Saudi citizens. The Human Resources Development Fund (HRDF) recently approved new rules specifying penalties for violators of financial support programs aimed at protecting public funds and deterring manipulation.
Penalties for Misuse
The regulations authorize the HRDF to impose one or more penalties on those found guilty of misusing the support. These penalties include:
- Halting the account of the violating institution or individual in the fund's electronic system.
- Denying access to the fund’s services.
- Retrieving the support funds or all fees disbursed to the violator.
- Cancelling the support application.
However, the suspension of services can be reconsidered if the violator returns the support money and commits to corrective measures.
Support Statistics
The HRDF, tasked with encouraging the private sector to employ Saudis, reported in July that SR2.3 billion was provided in support during the first half of the year. Around 220,000 male and female Saudis benefited from this support during the same period.
Objectives and Initiatives
The fund aims to strengthen professional sustainability, boost Saudi engagement in the labor market, and achieve job stability in the private sector. Through its programs, the HRDF also seeks to motivate the private sector to enhance Saudi employees’ skills.
Saudisation Policy
In recent years, Saudi Arabia has launched various initiatives to employ its nationals and replace foreign workers in fields such as education, telecommunications, and real estate. This labor policy, known as Saudisation, incentivizes private sector enterprises to create jobs for Saudi citizens.
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