The question:

How to deal with an employer whose activity is discontinued?

The answer:

The establishments whose activities are discontinued should be dealt with according to the following rules:

a.     The fines for delay should be ceased to be applied from the date determined for discontinuation of activity. GOSI Governor may exempt the employers from payment of all or part of the fines for delay due from the establishment whose activity is discontinued for the period preceding the said date.

b.    If the discontinuation of activity is limited to one branch of the employer's business and it is discovered that he has other branches or activities registered with the GOSI, the debit and credit balances should be transferred to the office where the employer's account and activity are still operating within the jurisdiction of such office.

c.    If the amount payable to GOSI or to the employer is one thousand Saudi Riyals or less, no claim may be made after the lapse of one year from the date of issue of the decision providing for the discontinuity of activity.

d.    If the amount payable to GOSI or to the employer is more than one thousand Saudi Riyals, no claim may be made after the lapse of seven years the date of issue of the decision providing for the discontinuity of activity.

e.    The employer's account should be closed after the lapse of the periods prescribed in the preceding two paragraphs (c) and (d), in which case the amounts due to GOSI should be considered as dead debts.

f.    Contributions in respect of the contributors should be payable as of the date determined for discontinuation of activity, and such date should be the date determined for discontinuation of contribution period of workers in this establishment.