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Change in labour laws of Saudi Arabia: Indians worried

A new Saudi Arabia labor law which came into effect from November 2012 is causing concern for both foreign professionals as well as Saudi Arabia employers. OpulentusStarting from November 15, Saudi employers with workforce of less than 50 per cent of Saudi nationals have to pay a monthly amount of SR200 or US$54 for each extra foreign employee. "I am hearing all sorts of rumors that I will have to now pay extra money for the renewal of my Iqama (a small booklet that says you are allowed to live or work in Saudi Arabia) and also for the exit and re-entry visa for my family members," Foreign professionals prefer to work in Saudi Arabia for the: Tax-free income, proximity to beautiful and holy places, struggle-free lifestyle. The new law is also getting resistance from employers who depend mostly on foreign professionals. "This decision is harmful to the private sector and citizens. It will increase tasattur (cover-up) trade practices," "At a time when educational attainment levels and the quality of education are improving, there needs to be a cultural paradigm shift in the corporate sphere. Regional private companies must be encouraged and incentivized to change their default modus operandi from 'import the employee you need' to 'develop the talent you require,'" Contact Opulentus for further details on the new Saudi Arabia labour regulations. Call now on 1800 103 1555 or mail to [email protected]

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