AlQa'dah 12, 1432, Oct 10, 2011, SPA -- The Governor of the General Organization for Social Insurance (GOSI) Soliman bin Saad Al-Humayyd said that the Violation Investigation Committee of GOSI issued 121 decisions imposing financial penalties on a number of establishments covered under the Social Insurance Scheme for registering 366 Saudi citizens with the Scheme without having an actual work relation. "These financial penalties were imposed in accordance with the provisions of Paragraph (1) of Article (62) of the Social Insurance Law and Article (55) of the Registration and Contribution Regulations as well as the recommendation of the Violation Investigation Committee", the Governor said, pointing out that this action aims to reduce employers' violation of the Social Insurance Law and Regulations in a way that ensures the rights of contributors and their family members, and guarantees the good application of the Law. Previously, GOSI launched several advertising campaigns to remind all private sector employers that the existence of actual work relation is required in order to register Saudi nationals with the Social Insurance Scheme. However, registering Saudi citizens without having an actual work relation is considered as a violation of the provisions of the Social Insurance Law. This violation is punishable by fines as well as recruitment suspension by the Ministry of Labor. Moreover, fraud-suspected violations will be reported to the concerned authorities.
