Saudi Ministry of Labor Presentation and FAQ on Nitaqat


PHILIPPINE EMBASSY-RIYADH ADVISORY 110/2011

Philippine Embassy Advisory 110/2011 (Updated 6 Nov. 2011)

The Philippine Embassy in Riyadh attaches a presentation by the Ministry of Labor and a booklet of frequently asked questions on Nitaqat, a program by the Saudi Ministry of Labor to provide incentives to private sector entities to nationalize jobs.

The Embassy asks the Filipino community to disseminate the attached presentation and FAQ, and to read it very carefully to avoid any confusion or misunderstanding.

Following are excerpts from the FAQ:

  • The Ministry of Labor recognizes and appreciates the role of expatriates in fostering economic growth in the Kingdom. The Ministry understands that the new program will have direct and indirect effects not only inside the Kingdom but also on labor markets of expatriate’s countries of origin.
  • NITAQAT is not designed to threaten the presence of expatriates; however, the ministry understands the cautionary perception which many expats might have of the program. We believe the program is fair to all stakeholders, including expatriates. Furthermore, expatriates can play an important role in making their current companies more stable if they start encouraging their employers to recruit more Saudis.
  • There will be certain change of employment preferences following the implementation of Nitaqat and some sectors will be affected by the program more than others, but even if we provide jobs for all unemployed Saudis, the private sector will still be in need of millions of expatriates.
  • The second phase started in 10th September 2011 when Nitaqat was implemented and some services are provided only to companies in Green and Excellent range and suspended for entities in the Yellow and Red ranges.
  • The third phase starts on the 26th of November, 2011 when employees of companies in Red range are allowed to move to companies in Green and Excellent range without their employer consent, and if they continue in working for companies in Red then their work permits will not be renewed once it’s expired.
  • Starting 23rd February 2012 employees of entities in Yellow range are allowed to move to entities in Green and Excellent range without their employer consent, and if they decided to continue working for the same employer then the work permit renewal is conditional to them having spent 6 years or less in KSA. If they want to stay longer, they would have to move to entities in the Green or Excellent range/band.
  • The Ministry of Labor guarantees by all means the rights of expatriates according to their contracts. In case the expatriate, belonging to Red or Yellow entities, finds a new job in a Green or Excellent entity, then he/she would follow standard procedures related to transfer of services except acquiring employer’s consent.   In case of any disputes, especially concerning employee rights, the expatriate must present his/her case to the labour office committee of labour complaints.
  • With the inception of Nitaqat, the Ministry of Labor, in coordination with the Ministry of Interior, unified the validity of both work and residency permits. Both are now issued and expiring simultaneously. The renewal window for any of these permits now starts 3 months before expiry. (Note: Renewing aforementioned permits is only allowed for expatriates working in Green and Excellent entities).
  • Nitaqat does not apply to domestic labor.

According to the Ministry of Labor, there are 2 million domestic or household labor. There are another 2 million foreign expatriates working in entities with 9 or less employees, and Nitaqat will not have an impact on them. The number of expatriates working in entities with 10 or more employees is 5 million and 50 percent of the business entities employing them are in the Green and Excellent range. They will able to renew work permits. The rest will be given the freedom to move to the Green or Excellent employer if they want to renew their work permit. Nitaqat will provide expatriates mobility from Red or Yellow to Green and Excellent entities without their employers consent.

At present, anyone could visit the Ministry of Labor website and inquire if their company falls in the Red, Yellow, Green or Excellent range. The Ministry of Labor will soon launch a service for expatriate to inquire by SMS or text message.####

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20 thoughts on “Saudi Ministry of Labor Presentation and FAQ on Nitaqat

  1. Sir tanong ko po kung anong color category company namin METSCCO HEAVY STEEL INDUSTRIES LTD. salamat po sir.

  2. good am po isa po akong skilled worker 7 years in the service sa company paano po ba namin makukuha yung service benefits namin dahil malabo na daw po na makakuha po kami. anu po ba ang dapat namin gawin.

    maraming salamat po…

    Jorge

    • Bakit naman po malabo, ano ang rason ng employer. It is very clear in SLL that “upon the end of the work relationship, the employer shall pay the worker an end-ofservice award of a half-month wage for each of the first five years and one-month wage for each of the following years. (Art. 84).”

      Kung ayaw po nilang ibigay puwede nyo pong ireklamo ang inyong employer sa SAudi LAbor Office. PEro bago ang lahat sulatan nyo po ang employer asking for your right as per SLL.

  3. sir,

    tanong ko lng po kung pwd na po ba talaga lumipat sa green category na companya kahit na walang consent or NOC sa present employer or sponsor?

    nasa red category po kc iqama ko.

    Jules Erich Dimla Algabre
    Iqama No.

    • Wala pong bagong LAbor Law. Ang Nitaqat ay government labor policy at hindi po ito nakasaad sa Batas PAggawa ng KAharian. Kung ang employer mo ay nasa Red or Yellow category – hindi po ang employer mo ang magsabing puwede ka ng lumipat kundi ikaw mismo po ang gagawa ng paraan para makalipat at wala po silang power na pigilan ka.

      • ako po ulit,sir bakit hanggang ngaun di pa inaaprubahan ng labor office ang aking release samantalang naka pirma na ang dati ko amo?ang sabi po ngaun ng dati ko amo pag di pa naayos agad ang paglipat ko bibigay daw nya ang warga sa jawazat para ako ma huli at ma deport sa pinas pls po paki advice salamat po.

  4. Magandang araw!

    Sir ask ko lang po sampu ng aking mga kasamahan dito sa Jeddah kung maari na po kami lumipat ng walang pahintulot ng aming kompanya (under yellow category). Meron na po kaming request/demand letter mula sa lilipatan naming kompanya (under blue category) ngunit hinihingian kami ng 5K riyals para i-release ang aming mga papeles. Ito poh ba ay makatarungan o maari kaming mag transfer ng walang babayaran? Ang transfer process poh ay sasagutin ng bagong kompanya yun lang 5K ang aming pinopoblema.

    Maraming salamat po.

    Mabuhay!

    Dino Santiago

    • Sa sistema ng Nitaqat at kung fully implemented na po ito doon sa Red or Yellow category, wala po itong katumbas na kabayaran. Puntahan po ang ating POLO JEddah at hanapin si Labor Attache Cabe at humingi ng payo sa nararapat ninyong gawin.

      Sorry for late reply.

  5. Sir Bong totoo ba itong news na to na hanggang Jan. 7, 2012 nalang yung bagong deadline sa Nitaqat system

    The Government is set to effectively SUSPEND all sponsorship transfer for all nationalities effective 07 January 2012. Companies will be required to immediately submit their manpower requirement, visas or sponsorship transfer approval will be given after review by Labor Office, depending on category (GREEN/EXCELLENT).

    – Companies in RED CATEGORY must submit original passports/Iqama to Labor Office for Final Exit latest by 07-01-12 or they will be penalized SR.100, 000 and all system will be closed for company and employees.

    – Iqama for 18 job categories and sub categories will NO longer be renewed, Accountant/Secretary/Salesman/Administrator/Sales Manager/Sales Supervisor/Finance Manager/Chief Accountant/Senior Accountant/Office Manager/Sales Assistant/Administration Manager/Office Boy/Driver/Receptionist/Warehouse Manager/Forklift Operator/Logistics Supervisor.

    – People on Free Visa MUST now regularize their status or they will suffer seriously from 07-01-12.

    links: http://migranteme.blogspot.com/2011/11/ofw-group-urges-ph-labor-office-to.html

    Pls enlighten me. thanks

    Lou

    • Huwag po nating paniwalaan agad ang mga naglabasan na write ups sa ngayon. Kailangan po natin ang isang verified correct na information upang mabigyan linaw ang lahat at makapag-gawa tayo ng mga tamang hakbang upang mapangalagaan natin ang ating mga karapatan bago ma-implement ang anomang kautusan ng Kaharian at ng sa gayon ang ating POLO at Embahada ay nasa ating harapan upang hindi tayo ma-agrabayado at tamang maibigay ang mga benepisyo na para sa atin ayon sa Batas Paggawa ng kaharian.

      Andito ako ngayon sa PHL and be back end of December, alamin ko po ang tunay na situwasyon.

      Bong

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