CHAPTER VI: CONTROL OF APPLICATION OF THE LAW
SECTION 1
GENERAL OBJECTIVES
ARTICLE (46)
1. The Organization shall take such measures as may be necessary for ensuring the proper application of the provisions of the Law and its implementing regulations, in particular:
a. To follow up the employers and assist them to properly apply the provisions of the Law and its regulations to ensure, in particular, that they contribute for all their workers on the basis of their actual wages and that they discharge their obligations towards the Organization in accordance with the provisions of the Law and the decisions of implementation thereof, and this includes the continuous survey of establishments and verification of the registration of such establishments with the offices of the Organization.
b. To follow up the employers who fail to pay the contributions or to submit the forms after the necessary actions are taken by the competent agencies of the Organization.
c. To explain the provisions of the Law and its implementing regulations to the registered employers to avoid application errors and to ensure speedy discovery of committed violations.
d. To ensure that each establishment is maintaining regular records and files to serve the objectives of insurance in accordance with the decisions implementing the Law.
e. To verify the employer's violations of the provisions of the Law and the decisions issued in implementation thereof and to investigate such violations and the workers' complaints concerning the employer's failure to register the workers or his payment of contributions on the basis of wages lower than the actual ones.
f. To coordinate between the appropriate organs of the Organization and those of the state bodies for the purpose of proper application of the Law, to exchange information pertaining to the new establishments to follow up those with late or discontinued payment, and to check whether the employer is abiding by the occupational health and safety instructions issued by the appropriate authorities.
2. The Governor shall, by decision to be issued by him, specify the departments and sections assigned to achieve the objectives and tasks set under the preceding paragraphs for each the head office and offices of the Organization as well as their individual functions and work procedures.
SECTION 2
THE INSPECTORS AND THEIR AUTHORITIES
ARTICLE (47)
1. The social insurance inspectors shall be charged with the achievement of the objectives provided for in Article (46) of these Regulations in accordance with such organization, plans and instructions as may be approved by the Organization.
2. The social insurance inspectors shall be elected from among the Organization employees who have been employed for not less than two years in the departments of the Head Office or the inspection work-related sections of the offices to the extent that renders them thoroughly acknowledgeable of the Law and its Regulations. Due regard shall be given to the following in the selection of inspectors:
a. They should be exclusively impartial.
b. They should not have any direct interest in the establishments being inspected by them.
c. They should have showed efficiency in the performance of their duties at the Organization.
3. The inspection works shall be entrusted to a selected inspector by temporary assignment for two months after which a comprehensive report shall be prepared on him. This report shall be used for evaluation of his personal characteristics, behavior, capabilities and aptitude for the proper performance of the inspector's assigned tasks, prior to his permanent placement in the position of inspector.
4. Prior to starting performance of their tasks, the social insurance inspectors and their superiors shall take before the Governor the following oath: "I swear by God the Almighty that I will carry out my post duties with honesty and dedication and will not disclose the secrets which come to my knowledge in the course of performance of my duties to any one other than the competent agencies of the Organization."
5. The Organization shall furnish each inspector with an identification card to evidence his capacity and authorities, which card shall show his photograph, the Governor's signature, the official seal, and the period of its validity as determined by the Governor. The inspector shall return such card on quitting his job or being transferred to do a job other than inspection. The inspector shall not be permitted to use such card on assignments other than the official inspection ones. In case an inspector loses his card, he shall be provided with a new one after it is ascertained that he is free from the responsibility for the loss thereof.
6. The inspector may not be transferred to do another job after taking the oath except for justifying reasons and by the Governor's approval.
ARTICLE (48)
The social insurance inspectors shall exercise the following powers:
1. To enter the premises of the establishment during the working hours for the purpose of carrying out their assignments.
2. To examine the records, papers and files or any other documents kept by the employer in respect of the application of the Law and its Regulations to the workers and to obtain copies of such documents if required.
3. To question the employer, his representative or his workers on any subject relating to his mission and may write a report thereon, if necessary.
4. With due regard to the provisions of paragraph (2) of Article (60) of the Law, the inspector may not request the assistance of any of the appropriate authorities of the Government without the Governor's approval.
ARTICLE (49)
In doing their jobs, the inspectors shall observe the following:
1. To be cautious and honest in choosing the information and statements they include in their reports concerning the establishments they have inspected. In particular, they shall base their observations on what they themselves hear or witness. They shall refrain completely from making any comments on matters which they are not adequately acquainted with in order to maintain the confidence which has been placed in them.
2. To carry, upon performing their duties, the identification card which evidences their capacities and to present it when needed.
3. To meet the employer or his representative before entry into the business premises to perform inspection, unless they feel that the public interest necessitates that they proceed performing their inspection assignment immediately upon their arrival. In no way, a prior notification of an inspector's visit be made unless such prior notification is deemed to meet the work interest.
4. To give full care to the guidance and advisory aspect in their relationship with the employers and provide every possible aid with a view to assist them in applying the Law and implemental measures thereof in the manner contemplated by the Organization and to overcome any difficulties in this respect.
5. To choose, for the inspection visits, the convenient time, subject to the nature of activity of the establishment.
SECTION 3
INSPECTION RULES AND PROCEDURES – REPORTS
ARTICLE (50)
The inspection agencies shall observe the following:
1. Inspection visit plans shall include a field inspection of establishments according to rules and procedures determined by the Governor.
2. The field inspection shall cover all aspects concerning the application of the Law and these Regulations and, in particular, the verification of registration of all workers with their actual wages.
3. The competent superior at each office shall organize the inspector's visits to the establishments during the official working hours in accordance with programs certified by the office director and prepared on special form approved by the Governor.
ARTICLE (51)
1. Each inspector shall prepare, on the relevant form approved by the Governor, a full report on the results of each inspection he conducts in respect of any establishment he visits. The report shall be submitted to his immediate superior for review and comments. The report shall, in particular, include the following information:
a. Administrative data which includes:
· Inspector's name.
· Date and time of inspector's visit.
· Names of the persons he has met.
b. Identification of the establishment he has visited which includes:
· Name, legal form, type of activity and registration number of the establishment.
· Address of the establishment.
· Name of the proprietor or responsible manager.
· Nature of work.
· Number of Saudi and foreign workers in employment.
c. Summary of the results of the visit.
d. Recommendations.
e. Such other information as the Governor may recommend to be included in the report.
2. The Office Director may accept the inspection visit made by an inspector although it has not been included in the already approved inspection visit programme, provided that the inspector shall have shown evidence of the visit event by means of a report signed by him and the establishment proprietor or responsible manager.
ARTICLE (52)
1. Where an inspector discovers that an employer has committed violations in discharging his obligations under the provisions of the Law and these Regulations, he shall clarify verbally to the employer or his representative the nature of the violation, the legal judgment in respect of the violation, and the procedures and the grace period for eliminating the violation and shall confirm the same by a letter to be sent to the employer by official mail. If the employer fails to respond within the grace period, he shall be given an official warning duly certified by the Office Director, and such warning shall contain a statement of the violations and the procedures which shall be taken to eliminate the violations and shall indicate an adequate period determined by the Office Director for the elimination of each violation according to its nature, provided that it shall not exceed one month. The Office Director may extend the said grace period for further one month maximum, if he discovers that the employer is ready to respond. He may, in lieu of serving the said warning letter, provide the employer with a copy of the inspector's report referred to in Article (51) if it suffices the purpose, with the grace period granted to him for elimination of the violation specified in the report. The granting of the grace period specified in the warning shall not prejudice the Governor's right to apply the penalties imposed by the Law without waiting until the expiry of the grace period for such reasons as may be determined by the Governor if this would maintain the entitlements of the Organization.
2. With due regard to the provisions of Article (53) of these Regulations, if the employer fails to eliminate the violation within the prescribed grace period in accordance with the provisions of the preceding paragraph, the inspector shall draw a report of contraventions in triplicate of which a copy shall be sent by official mail to the employer, provided that the report shall contain the basic information, in particular:
a. The position of the violator, being either the employer or the person-in-charge of the conduct of his activities;
b. Statement of violations clearly;
c. The number of workers involved in contraventions for which penalties may be multiplied by the number of workers in respect of whom such contraventions have been committed; and
d. Statement of previous contraventions by the employer in relation to which the fine may be doubled.
ARTICLE (53)
1. In case of resorting to drawing a report of contraventions, such report shall be drawn up in the workplace unless this cannot be done for exceptional reasons. The inspector shall ask the employer about the reasons for committing each of the contraventions he has witnessed, and he shall record in the report a summary of his answer. The report shall be signed by both the inspector and the employer or manager-in-charge. In the event of refusal to sign, a reference shall be made to this effect in the report.
2. The report of contraventions shall be submitted to the Office Director who shall, in turn, submit the report (or a copy thereof if the original has been sent to the employer) along with his recommendations to the competent department at the Head Office for presentation, if necessary, to the Governor for issuing his instructions.
3. The drawn report of contraventions submitted to the competent department at the Head Office shall enclose the following documents, as necessary:
a. Copy of the report referred to in paragraph (1) of Article (51) of these Regulations duly certified by the Office Director with an indication of his approval of the drawing of the report of contraventions.
b. Copy of the warning served to the employer and bearing the signature of the employer or his representative as acknowledgment of receipt of the same or showing the Office outgoing mail reference number and date.
c. Copy of the survey statement prepared by the inspector and signed by both the inspector and the employer or indicating his refusal to sign. Such statement shall contain complete particulars on workers, their numbers and the discrepancies in wages or dates of entry in employment.
d. Copy of the claim for payment of amounts due to the Organization as a result of the contents of survey statement on the date of dispatch of the claim which shall have been dispatched at least fifteen days before the final inspection is performed on the employer's establishment. The copy of the claim shall show evidence of receipt of the same by the employer or the number and date of dispatch of the same from the Office.
e. List of state bodies, semi-state bodies and joint stock companies which the employer is dealing with particularly in the contracting field.
f. A mention of the penalty alleviating or extenuating circumstances, as appropriate.
g. The employer's establishment size and capabilities for coping with the provisions of the Law and the employer's readiness for response.
4. The Governor shall make such forms as may be required for the implementation of the provisions of this Article.
ARTICLE (54)
The Director of the appropriate Office shall submit to the Head Office of the Organization a report on the following contraventions with a view to take the necessary action if the office fails to have them remedied or if the remedy of such contraventions requires approval from another competent authority:
1. If the employer refuses to abide by the instructions issued by the appropriate authority in relation to occupational safety and health, or if the insurance inspector fails to verify the same.
2. If the employer insists to refrain from registration of his workers, or a dispute arises in respect of the work relationship, period of service, or wage earned by the worker.
ARTICLE (55)
For the purposes of application of the provisions of paragraph (4) of Article (62) of the Law, the Governor shall be empowered to form one committee or more for investigation in the violations provided for in the said Article and to set the committee's work procedures.