Many sponsors exploit grace period to make extra money

April 16, 2013

Jeddah, Apr 16: A number of Saudi sponsors have taken advantage of the need of the foreign workers to rectify their status before the grace period of three months is over to ask for huge sums of money so as not to issue them a final exit visa. nitaqat

This scenario has caused over-crowdedness by workers and domestics in front of their respective consulates to find a solution for their problem or at least facilitate their travel procedures particularly since many are unable to pay the ransom which at some cases exceeded SR15,000.

The vacant lot near the Philippines Consulate in Jeddah was overflowing with male and female Filipinos forcing the traffic police to rush to the scene to organize traffic.

Some of the Filipino workers said their sponsors told them bluntly that they can no longer retain them lest they may be subjected to punishment after the grace period is over. “This is why we have rushed to our consulate to facilitate our travel back home,” said a Filipino who did not want his name to be published.

Another Filipino said the majority of them could not correct their status because they have been staying illegally in the Kingdom for several years. “Some of them have escaped from their original sponsors and were working for other Saudis,” he added.

He said the violators of the system of labor and residence will face harsher punishment if they are unable to correct their status before the termination of the grace period. “This is why they came to their consulate to find a solution to their predicament or otherwise deport them home,” he said.

Rakan Al-Ayoubi, a Saudi citizen, said he came looking for a housemaid because he and his wife are both working and their need for a domestic is pressing. He said he cannot recruit a housemaid from the Philippines or Indonesia as recruitment from these two Southeast Asian countries has been halted. “I am also afraid that the housemaid may escape and in this case the recruitment office will not refund the money I have spent on her recruitment,” he said.

He recalled that his housemaid became terrified when she came to know about the crackdown on violators by the Labor Ministry and the Passports Department.

“We woke up one day to discover that she was missing. We tried to contact her but her mobile phone was switched off. I think she must have been persuaded by one of the brokers to escape,” he said.

Al-Ayoubi said he was tired of paying large sums of money to obtain a housemaid from the black market. “We are waiting for the crucial moment when the country is cleaned of the violating foreign manpower. When the decision is fully implemented, it will rid the country of the black market and put an end to the high prices. We want to go back to the past system when a housemaid was recruited at a fixed amount of money and was paid a modest salary,” he said.

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KT
June 15,2020

Dubai, Jul 15: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, announced the launch of a 'New Media Academy in Dubai on Monday - a new institution that will train people on the science of digital media.

Taking to Twitter, Sheikh Mohammed said that new media is a new science that has its own set of special tools and secrets, and that the future cadres of UAE must be at the forefront of it.

"The academy will prepare new experts and managers in the field of communication in government and private institutions, as well as training professional social media influencers", Sheikh Mohammed tweeted, adding that the new media is providing new job opportunities and careers today, and will always be a main supporter in the journey of development.

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News Network
May 5,2020

Abu Dhabi, May 5: The overall real GDP (gross domestic product) of the United Arab Emirates is estimated to have grown by 1.7 percent in 2019, the country’s central bank said in a statement on Monday carried by WAM.

"The UAE hydrocarbon sector is estimated to have exhibited a growth of 3.4 percent in 2019. However, non-oil activities advanced at a softer pace growing by 1.0 percent. As a result, overall real GDP is estimated by FCSA (Federal Competitiveness and Statistics Authority) to have grown by 1.7 percent in 2019," said the financial regulator in its Annual Report 2019.

"The spread of COVID-19 is expected to impact trade and supply chain movements, coupled with travel restrictions which paves way for high volatility in capital markets and commodity prices. While the outbreak is expected to negatively affect the global and domestic economies, it is still early to gauge the scale of the economic fallout," the report added.

The report noted that the higher hydrocarbon output, as well as growth in non-hydrocarbon economic activity, supported the pace of the country's overall economic growth in 2019.

"Meanwhile, the fading effect of VAT, the appreciating Dirham, lower energy prices and decline in rents pushed inflation in negative territory. However, the employment rate registered a steady rebound. Looking ahead, the economic outlook for 2020 remains uncertain owing to the COVID-19 outbreak," the report elaborated.

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Gulf News
May 29,2020

Dubai: There aren’t that many job vacancies right now – but be prepared for a 15-20 per cent cut in salary expectations even for those positions that are still open. Businesses in the UAE are definitely not in a generous mood when it comes to hiring, with salary cuts now part of the new normal.

And they are definitely not willing to take on new hires without extracting some cost benefit from them. “We have seen major [salary] cuts across the board in hospitality, real estate, professional services and in retail,” said Vijay Gandhi, regional head at Korn Ferry Digital, the recruitment consultancy.

“And once the headcount correction is complete in [the local] financial services and energy sector, we may see more cuts in rewards and benefits in these categories as well.”

The salary cuts are slowly extending their way into the healthcare sector as well – just about every non-COVID-19 facing medical category is coming across cuts in the number of working hours and, by extension, their take home packages.

By end of June, more businesses and sectors in the UAE will have a better understanding of their short-term revenue prospects. By then, they will also have a better reading on what their staff strength should be – and whether there should be more trimming of the workforce. Or whether they should consider a few hires as well.

A long summer
So, realistically, it could be September before such decisions need to be taken. The coming weeks will then prove to be laden with anxiety for those who are expecting to land a job option after being laid off at their current employers.

There are multiple instances of recruitment decisions having been made in February/March, and then the companies rescinding those offers to the chosen candidates citing the business uncertainty.

“The decision to hire is taking longer – so job creation is now 4-6 weeks from interview and selection compared to 4-6 days in the past,” said Gandhi.

The lucky ones
Recently, free zones and other entities had made it easier for personnel on the visa of one entity being able to smoothly transfer to another if they are likely to be made redundant. “We are seeing more flexibility being offered by the authorities given the circumstances, and the visa transfer process is happening,” said Gandhi.

“But in the vast majority of cases, businesses are going to wait and watch before normal hiring activity starts. Organizations will look to hire from September.”

A few hires are still happening
Even in the business turmoil set off by COVID-19, a few categories are still offering jobs. At the entry level, logistics services personnel and drivers with experience remain in demand.

Not just “routine jobs, there have been confirmations in more technical roles such as procurement and operations in healthcare and e-commerce,” said Gandhi. “Employers should keep an eye for good talent and have the talent acquisition team actively looking for good profiles.

“As such, organizations are not only looking at “right sizing” in numbers but also “future proofing” on what kind of skilled talent will help them in the post-COVID-19 world.”

But for the candidates, the present will be about waiting around for the call to come.

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