The General Organization for Social Insurance (GOSI) confirmed that employers should not register workers without a real work relationship, and if any false work relationship is detected with the company, the penalties stipulated in the insurance system will be imposed.
GOSI explained that in case of a worker registered without an actual work relationship, the violations investigation committee in the organization shall directly examine the case and ensure that there is an actual work relationship or not, and if it is proven that there is no work relationship between the employer and the worker, penalties shall be applied to the company, as stipulated in the Social Insurance Law, which is a fine of twice the amount of contributions due for that registered period or 20,000 riyals, whichever is higher for each case.
– The Organization explained that a compensation payment violation is unlawfully applied to the beneficiary, and its fine does not exceed the amount of those compensations with the return of what was disbursed to him, and the contribution periods recorded as being invalid.
Coordination is also made with the Ministry of Human Resources and Social Development with regard to establishments that register without an actual work relationship. Where it is prohibited from recruiting other than the penalties stipulated in the labor system.
The Foundation indicated that it is using an artificial intelligence system that tracks the movement of subscribers’ registration and analyzes it, based on certain criteria to discover suspicious cases and refer them to field inspection to verify and record violations and penalties.
The Corporation called the participants to verify their registration in the system and their registered salaries as per the correct remuneration to ensure full use of the benefits of the system, such as retirement pensions, occupational risk compensation and unemployment compensation “SANED”.
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