The Ministry of Labor will penalize companies if they delay paying salaries to their workers, said Dr. Mufarrej Al-Haqbani, Deputy Minister of Labor for Planning and Development. Al-Haqbani said that the ministry will soon introduce a new law that will ensure workers' salaries are paid regularly and on time. He said that companies failing to comply will not be awarded any new contracts. Al-Haqbani said it is mandatory for companies to deposit employees' monthly salaries and benefits in their bank accounts. The ministry is working with the Saudi Arabian Monetary Agency (SAMA) to instruct local banks to open accounts in the names of workers. Meanwhile, a group of businessmen held a workshop here Tuesday on challenges hampering the growth and development of small and medium-sized businesses. They criticized the Nitaqat Program launched by the Ministry of Labor last year to accelerate the Saudization process in the private sector. Abdul Badie Saleh, an investor in a small business, said the program will force many investors to pull out of the market. Muhammad Al-Sabbagh, another investor, said most small businesses are already in Nitaqat's red zone and will have no choice but to close their companies. He argued that this will deprive the national economy of 30 to 40 percent of its business activity in the sector. __
