Saudi tightens labour recruitment regulations

Laws governing labour recruitment in KSA have changed.

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Saudi’s Deputy Labour Minister Mufreh Al-Haqbani has said the number of work visas granted to foreign labour recruitment companies will depend on demand for workers, company accounts and their ability to provide accommodation and other services to the recruits.

Speaking to the Al-Eqtisadiah daily newspaper, Al-Haqbani said the Ministry of Labour had agreed in principle to establish recruitment companies to replace the existing recruitment offices, but final approval had not yet been granted.

“The granting of work visas to these companies depends largely on their effectiveness in providing services to the foreign manpower, whether they are housemaids or workers in the public and private sectors,” he said.

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Al-Haqbani said the companies will be granted work visas to import foreign manpower to hire them out to interested public and private companies and establishments and will be able to act on behalf of individuals needing workers.

“Once they are finally established, the recruitment companies will be the ministry’s tools to control the recruitment sector and to organise the labour market. The companies will only import foreign manpower that are educationally and vocationally qualified,” he said.

The deputy minister said the regulations stipulated that the founders of each recruitment company should include at least five existing recruitment offices and that their paid up capital should not be less than SAR50 million.

“Companies wishing to import foreign workers for hiring them out and to act as an agent on behalf of individuals wishing to recruit housemaids should each have a paid up capital of SAR100 million,” he added.

Al-Haqbani said the company would be able to obtain 1,000 work visas for each recruitment office participating in its establishment.