Saudi Arabia is proposing new regulations to tighten the operations of labour recruitment firms in the kingdom. Under the proposed rules, companies are expected to offer a bank guarantee and maintain paid-up capital in line with the size of their business. Furthermore, the period of their operating licenses will depend on compliance with these financial standards. These measures are aimed at ensuring that recruitment firms can meet their financial obligations and reduce the risk of exploitation.
Under the new rules, companies will be required to be more financially sound, and the bank guarantee will act as a safety net for workers and clients. This is part of the Saudi government’s efforts to reform the labor market and improve the protection of migrant workers, who constitute a considerable percentage of the workforce in the kingdom.
The new financial requirements are likely to affect both small and large recruitment firms, as their operations would need to change in accordance with the new requirements. These changes form part of a broader effort by the Saudi authorities to regulate the labor recruitment sector, address issues concerning unethical practices such as human trafficking and worker abuse.
The new regulations will more than likely ensure the increased transparency of the recruitment process for labour and the company’s accountability over the welfare of its workers. These steps would align with Vision 2030, which intends to create a more sustainable and ethical economy in the country.
