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Tough rules on delaying employee salaries in 2024. Details of the news are below:
Tough rules on delaying employee salaries in 2024
Mudad will cease all employer services for those delaying workers’ salaries for three months, as announced by the Ministry of Human Resources and Social Development in Saudi Arabia. Employers failing to pay salaries on time for three consecutive months will lose all services, allowing workers to transfer to a new employer without the current employer’s consent. The Mudad platform, linked to the ministry, enforces this penalty even for workers with legal permits. The platform has shortened the time for companies to explain salary delays to workers from 30 days to 10 days, in compliance with the law. Additionally, the Mudad platform facilitates payroll processing for businesses of various sizes, with membership fees based on the number of employees. Employers can add workers, including part-time ones, to Mudad, enabling payroll flexibility and social insurance system participation.
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