Crackdown on Yellow and Red zone companies

Published 12 Sep 2011
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Crackdown on Yellow and Red zone companies

Riyadh – SPA
Minister of Labor unveiled stringent policy to impose job localization program dubbed “Nitagat”. The measures are designed to prevent evasion of Ministry of Labor rules by companies falling within the yellow and red zones.
There is still 3 month period for yellow and red zone companies to clear respective deviations in order to avail MOL services including renewal of work permits and change of profession for their non-Saudi workers.
Minister of Labor urged yellow and red zone companies to avail this opportunity and comply with regulations in order to avoid penalties if they continue ignoring the national program designed to streamline labor market and create jobs for Saudi job seekers.
Penalties against violators include being barred of certain services including recruitment, worker re-assignment and denial of access to o Ministry of Labor database for the purpose of opening of a company branch or establishing of a new business.
On the other hand incentives to green zone compliant companies include new visa with non-restricted  professions attainable through the ministry’s e-services, change of profession including professions restricted to Saudi nationals, workers re-assignment without the two year service condition. All these incentives will be given only if the ranking of the company will not change following  avail of the incentives.

The green zone compliant companies will continue to avail MOL services  one year following expiration of work license or requisites of other government agencies as well as renewal of expatriate  work permits provided the worker’s residence permit is more than 3 month valid. In case of final exit, the green zone company will be given one new recruitment visa in compensation for every two exit visas in addition to expatriate workers profession change.
A green zone company  will continue to avail the services of Ministry of Labor six months after expiration of Taxation Payment Certificate. It can renew work permits for its workers provided the worker’s residence permit is valid for more than 3 months.
Companies can use Ministry of Labor e-Services to correct details of business activity in order to reflect the actual activity.


Last Modified Date: 10/02/2013 - 2:55 PM Saudi Arabia Time


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