MADINAH — The Ministry of Human Resources and Social Development (MHRSD) has issued orders to withdraw the licenses of seven recruitment companies and offices for the violation of the recruitment rules and regulations. The ministry also suspended licenses of another eight recruitment firms until taking a final decision over the complaints filed against them. Punitive measures have been taken against these firms for the violation of the Labor Law regulations committed during the months of August and September 2022. The ministry's action comes within the framework of its follow-up and monitoring procedures of the recruitment sector and resolving complaints and disputes that may occur between the parties involved in the contractual relationship. Saad Al-Hammad, spokesman of the ministry, said that the ministry had revoked more than 400 licenses of recruitment firms over the period of the last two years within the framework of structuring the recruitment sector, after monitoring many violations of the regulations and instructions related to labor affairs. "While canceling licenses or suspending activities of the recruitment offices, the ministry's focus is not merely on taking punitive measures against violations but also enhancing compliance, and improving services, in a way that safeguard the rights of all the concerned parties," he said. Al-Hammad said that among the major violations that were dealt with in the recruitment sector are twofold. "The first part is related to the serious violations and the second part is related to the administrative violations. The ministry won't tolerate the serious violations and would resort to the revocation of licenses and halt the firm's activities in a permanent manner," he said. The spokesman said the serious violations include infringement of labor rights, trafficking in persons, and piling up of complaints by citizens and residents without any initiatives to address them. In such cases, the bank guarantee of the office at the ministry will be liquidated and the rights of citizens and residents will be restored, he pointed out. With regard to administrative violations, Al-Hammad said that the activities of the recruitment firm would be suspended during the corrective period of 60 days, after which it will be allowed to practice the activity with a vigorous follow-up from the ministry.
