Saudi Arabia / 3M Expatriates Facing Redundancy

Saudi Arabian private companies who have not legalized the work status of their expatriate employees are planning to lay them off due to fears of expected raids by labor authorities.

Some 3 million expatriate workers are threatened with redundancy.

Many of these companies do not have the financial capability of transferring workers onto their sponsorships.

Medium and small-sized companies currently face the challenge of legalizing their expat staff since employers of such firms are already under pressure to increase salaries and improve employment terms.

Companies in the Red Zone of the nationalization system, “Nitaqat,” will be the most affected, since most of their manpower is foreign.

Fadal Abu Ainain, a financial adviser for private companies, said medium and small-sized companies that have limited financial budgets will resort to letting their expat workers go.

“Employers who are found hiring illegal workers will be fined for allowing them to work without transferring their sponsorships since this is a clear violation of the labor laws of the Kingdom,” Abu Ainain told Arab News.

“There are many companies that have caused disarray in the labor market and it is time to rectify this and to adhere to nationalization laws,” Ihsan Buhulaiga, a former member of the Shoura Council and an economic expert, told Arab News.

Chosen excerpts by Job Market Monitor

via Saudi Arabia: 3 Million Expatriates Face Redundancy Eurasia Review.