It is an agreement between a Saudi worker and an employer. The worker is registered in the labor market and social insurance records. A salary is paid to the worker. However, there is no evidence of actual work performed at the establishment. The establishment's motive is typically to benefit from the Ministry's services and increase the localization rate.
There are several negative impacts on establishments adopting fake localization. Most Importantly, they don’t benefit from the actual skilled and competent Saudi employee. This negatively impact the establishment sustainability and competency in the labor market as well as its capacity to upgrade the production quality and the absence of the real Saudi employee impacts the experience diversity and knowledge exchange in the establishment which in turn hinder development and creativity.
Fake localization also impacts individuals as fake Saudi employees do not achieve career progress nor increase expert knowledge which in turn deprive them from real employment and career progress. Employees registered through fake localization find themselves enlisted within low paid and unstable jobs. This contradicts improving their own living standards and deprives them from their essential rights.
Fake localization contributes to high disguised unemployment rates as it discourages the real Saudi employees seeking job opportunities. It also decreases the productivity and the potential entrepreneurs’ rates resulting in absence of economic development and progress.
On the social level, fake localization contributes to distrust between employees and establishments resulting in general state of dissatisfaction and frustration which negatively impacts sustainable development.
The ministry has defined fake localization suspicion criteria to unveil practices of such field. These standards include inspecting worksites, equipment and appointments and ensuring there is an actual activity being carried out. Indicators and signs of potential fake localization in establishments such as the repetition of Saudis employment patterns and the absence of evidence of providing actual job opportunities can also be analyzed.
<p class="text-align-justify">In the event of detecting fake localization practices in one of the establishments and mediators, the penalties stipulated in the Labor Law, its executive regulations, and the resolutions issued in this regard shall be applied, and the matter shall be referred to the competent authorities to apply the penalties mentioned in the Penal Code for Forgery Offenses.</p><p><br> </p>
This e-service allows the users to report any violations of labor regulation in the private sector. Their reports will be sent to the responsible team in the Ministry of Human Resources and Social Development. As a result, this will create cooperation frameworks and connection to activate the monitoring and reporting process between the citizen and the Ministry towards workplace without violations.
Service Channels: Application of the Ministry of Human Resources and Social Development