The General Organization for Social Insurance (GOSI) has announced that it would fine employers SR10,000 for denying workers their entitlements under the system by not correctly stating the reasons for their dismissal.

Abdullah bin Mohammed Al-Abduljabbar, GOSI’s spokesman, said that the organization recently noticed that some employers were not stating the correct reasons for the dismissal of their employees. He said this has led to companies denying their employees access to their insurance and payment for damages once they leave.

Al-Abduljabbar said that employers must state the correct reasons for the dismissal of staff. For example, this may include the company ending operations if the owner dies, liquidation of the business, or the employer closing shop.

“The final dismissal of an employee shall be confirmed upon their termination under the provisions of Article 80 of the Labor System. Death as a reason for dismissal can only be applied when the worker dies for reasons not related to his or her work.

“Resignation from the job should be stated when the worker himself chooses to resign voluntarily, or when the contract with the employer has expired,” he said.

He said expiry of contracts could also be stated as a reason for dismissal. “Bankruptcy can be stated as a reason for dismissal only when the establishment has filed for bankruptcy in accordance with the relevant regulations,” he said.

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