Introduction of the wage protection system in the Kingdom of Saudi Arabia
Type
E-journal
Date
25 Sep 2013
Jurisdiction
Saudi Arabia
Taxonomy
Contract & Conditions of Employment, Pay, Benefits & Tax, Rights & Duties of Employees & Employers
Copyright
LexisNexis
Relevant company
Clyde & Co
Analysis
From Sunday 1st September 2013 (the Mandatory Implementation Date), all companies in the Kingdom of Saudi Arabia (KSA) with 3,000 or more registered employees and all private schools, regardless of the number of employees, are required to implement the KSA Wage Protection System (WPS) programme (the Programme). There is no indication, at present, as to when the Programme will apply to other businesses operating in KSA.
There are a number of aims behind the introduction of the KSA WPS, such as:
• to ensure that all KSA and expatriate workers in the private sector are remunerated as per their contracts;
• to streamline the KSA labour market (by removing excess labour in the market), remove discrepancies and create a secure and stable atmosphere for workers;
• to reduce labour issues, increase worker productivity and expose firms and businesses operating in KSA without the requisite authorisations and permissions.