Many Saudi Arabian companies with more than 3,000 employees have started implementing the wage protection programme, which becomes mandatory on September 1, a report said.

Saudi and foreign private schools need to abide by the new law irrespective of the number of staff, Deputy Labour Minister Abdullah Abuthnain was quoted as saying in the report in Arab News.

“This programme will help reduce labour issues and increase workers’ productivity. It will also help us uncover fake firms, fight cover-up businesses and get rid of excess labour,” he added.

Companies and schools are required to provide details of wages paid through banks to the ministry via its website, according to the report.

“The programme aims at ensuring that all Saudi and expat workers at private firms received their salaries as per their contracts,” Abuthnain said.