Employers involved in fake Saudization will face 5 years imprisonment and a fine of up to 10 million riyals, according to a draft regulation prepared by the Ministry of Labor.
Violating businesses will be deprived of recruitment, government loans as well as blocked from participating in government bids and transferring sponsorships, according to the draft regulation, a section of the Arabic press reported on Saturday.
People will be encouraged to report any fake Saudization cases to the ministry by phone or through its website.
The ministry’s inspectors will then visit the violating businesses to verify the report.
The ministry explained that fake employment is where a business enlists a Saudi with the social security body without actually employing him in order to achieve its Saudization quota.
The ministry listed various types of fake Saudization, which include enlisting a special needs national without entrusting him with work and enlisting a special needs national who is actually incapable of performing any duties.
Fake employment also includes employing women in jobs that are not suitable for them, and failing to update the data of any Saudi worker who has left his job.
Fake employment also includes enlisting a Saudi with social security even though he is a government or military employee, and transferring a Saudi from one sector to another for the purpose of increasing the Saudization quota in the other sector.
In 2011, the Kingdom imposed stricter penalties for failing to meet quotas for hiring Saudi citizens.
In 2012 it also introduced a levy of SR2,400 ($640) a year on every foreigner a company employed over the number of its Saudi workers.
A company would resort to faking Saudi employees so they could hire more foreigners. Not considered desirable in Saudi Arabia it seems, but a fetish in the Western world, oddly enough.
Related: Saudi Arabia’s mobile subscriber base has fallen by a tenth in two years following a crackdown on illegal workers, reduced quotas for religious pilgrims and stricter phone registration requirements, data from the industry regulator shows.
The drop to 51 million subscriptions as of Sept. 30, 2013, the most recently available data, from 56.1 million two years earlier marks the end of a remarkable growth phase that led the country to claim one of highest proliferations of mobile phones globally.
Nearly 1 million foreign workers, out of roughly 9 million, are estimated to have left Saudi Arabia from March to November 2013 as authorities enforced work permit rules and corporate quotas for employment of local citizens.
“The clampdown on illegal workers will have had some effect on operators’ earnings as people leave the country, but it’s likely these were among the lower spending customers,” said Martin Mabbutt, a telecom analyst at HSBC in London.
Don’t like it, telecom companies? Tough. We are not idiots in Saudi Arabia!