What is the NITAQAT?
Arabian for “ranges,”
the Nitaqat is an incentive program designed by the Ministry of Labor
of the Kingdom of Saudi Arabia (KSA) for the nationalization of the private
sector workplace. This is to answer the growing youth unemployment among Saudi
citizens, which is higher than every country in the Middle East and North
Africa (MENA) except Iraq. Ironically, KSA employment is dominated by
foreigners in the ratio of nine in every ten employees. Although the
private sector has been creating jobs, they do not go to Saudis.
The government’s goal is to succeed in
creating 1.12 million new jobs for Saudi nationals by 2014, or 92 per cent of
all new jobs created, as set out in the current development plan.
How does the National Policy work?
Under the new Nitaqat system, companies
will be labelled as “blue or premium”, “green”, “yellow”, or “red” depending on
the level of Saudi workers in them to comply with established workers. It
assigns different nationalization rates according to the size and activity of
companies, so smaller companies have smaller overall quota requirements than
larger ones do.
This scheme will also level severe
penalties on violators and offer incentives and quotas to firms meeting the
quotas.
Nitaqat
System in a Nutshell
NITAQAT (ZONES)
SYSTEM
In a Nutshell
|
· 41 classifications
of employment sectors
· 5 company
classifications based on employee tally
· 4
compliance-related and disciplinary zones
|
|||||
5 Company
Classifications (based on total employee tally)
|
||||||
1-10 employees
|
EXEMPT from classifications
|
Nitaqat system does not apply
|
||||
10-49 employees
|
SMALL classification
|
5-24% Nationalization required
|
||||
50-499 employees
|
MEDIUM
|
6-27% Nationalization required
|
||||
500-2999 employees
|
LARGE
|
7-30% Nationalization required
|
||||
3000-more employees
|
BIG
|
8-30% Nationalization required
|
||||
4
Compliance-Related and Disciplinary Zones
|
||||||
Blue zone
|
GREEN zone
|
YELLOW zone
|
RED zone
|
|||
VIP category
INCENTIVES:
· Can hire anybody
from any part of the world.
· Easier visa
processing
· New visas with open
professions through the electronic system.
· Can change
professions of their workers even to those that are restricted to Saudis,
except jobs such as employment officials, receptionists, government liaison
officials, treasury staff, and security officers.
· Condition-free visa
transfer: Can hire employees from Red zone and Yellow zones, and transfer
their visas without the permission of their employers
· Entitled to a
one-year grace period if their municipal and professional licenses or
commercial registrations were expired.
|
Excellent category
INCENTIVES:
· Can apply for new
visas once every two months.
· Can change their
foreign workers’ profession except to those restricted to Saudis (i.e.
Human resource managers; liaison officers; cashiers; receptionists; security
guards)
· A six-month respite
after the expiry of their zakat & revenue certificates.
· Can renew work
permits of their employees.
· Can recruit
employees in red and yellow zones and transfer their visas without the
approval of their employers.
|
Poor compliance
Punitive Measures:
· No new visas
· Can get only one visa after the departure of two expatriates · Cannot transfer visas and change professions. · No work permit renewal for employees who have completed six years. · No control on workers who can switch over to premium zone companies
Grace Period:
9 months to improve their status.
|
Non-compliance
Punitive Measures:
Banned
from change of profession, transfer of visas, issuance of new visas and
opening files for new branches.
Grace Period:
6 months to improve their status.
|
|||
Under
the new policy, foreign workers employed by companies that are not in
compliance are free to work for companies in compliance without acquiring
permission from their employers at non-complying companies.
|
||||||
If unfortunately, you are in Red or
Yellow Company and want to switch job you can search job, in addition to other
popular recruitment sites, at http://www.redyellow.com.sa/jobshome.aspx
source : Saudi Gazette
No comments:
Post a Comment