Saudi Gazette report DAMMAM – Several experts have criticized the Ministry of Labor's recent decision to allow expatriate workers to transfer their sponsorship without obtaining approval from their sponsors. Expected to be implemented in the coming months, the decision allows workers employed in companies that are in the green zone of Nitaqat to transfer sponsorship to companies in the green and premium zones but not to those which are in the red and yellow zones. The deputy head of the National Real Estate Committee, Mohammad Al-Khaleel, criticized the ministry's decision. It will allow workers to exploit employers, he said, suggesting a transitional period of three months be set before a worker is allowed to transfer his sponsorship. “Allowing workers to transfer their sponsorship without obtaining permission from their employers will create many problems for companies that have many commitments and will result in breaching of contracts,” he said, asking the ministry to explain what it hopes to achieve with the move. The head of the Real Estate Appraisal Committee at the Jeddah Chamber of Commerce and Industry (JCCI), Abdullah Al-Ahmari, said the decision was a surprise for companies in the green zone that have met their Saudization quotas. “This decision should only be applied on companies that are in the red zone because their workers are not allowed to renew their Iqama (residency permits). But allowing workers to freely choose their sponsors will affect many companies, which will fail in meeting contractual agreements, forcing them to recruit additional workers to fulfill pending commitments,” he said. “We are all in support of regulating the labor market and punishing violating companies, but not at the expense of companies that have met the ministry's requirements,” he added. Economist Faisal Al-Doukhi said that this decision will result in large salary increases of expatriate workers, something he said will result in increased production costs. “The negative effects of this decision will include the collapse of some establishments, especially small ones, and the loss of time and training that companies have provided to workers,” he said.
