The Saudi government will pay fines levied for the late renewal of workers’ residency visas if it is determined the delay was caused by late contract payments by the government, the Saudi Press Agency has reported.
“The cabinet decided that the government shall bear the fine imposed on the employer if it was proved that the delay in renewing the worker’s residence permit was due to the government’s delay in paying the employer’s dues and the worker was working on the same project,” the SPA story noted.
The Ministry of Finance has been authorised to carry out the required procures.
According to media reports, some contractors in Saudi Arabia – across a wide variety of sectors - are still struggling to receive payment on time, despite assurances from the government that the situation is being rectified.
In January, the kingdom’s ministry of finance launched an electronic platform to allow contractors to check on the status of payments.
Severe delays in government payments were first reported in 2015 and 2016, forcing many companies – including Saudi Binladin and Saudi Oger – to lay off workers after being unable to pay their salaries.
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