Exchange companies cautioned
KUWAIT CITY, June 26: The Central Bank of Kuwait has informed the exchange companies that non-compliance with the 15 per cent employment ratio of national labor will not be recorded as a violation but will be recorded as a ‘note’, stating that it is not the decision maker of the decision, reports Al-Rai daily.
The Central Bank had earlier sent a circular to the exchange companies on the need to raise the proportion of national manpower from 13 to 15 percent, and to implement this decision by July 20, 2019, calling on the companies to comply with this decision.
The Central Bank said during a meeting with the Chairman of the Kuwaiti Federation of Exchange Companies, Abdullah Al Mulla, and his deputy Talal Bahman that the decision was issued by the Public Authority for Manpower (PAM) which is responsible for estimating the required national manpower ratios in companies.
He pointed out that the previous circular to the exchange companies in this regard came at the request of the PAM, which is the only entity that has the right to take specific punitive measures regarding companies that are not committed to the prescribed national employment rates. Sources pointed out that the exchange companies understood from the circular of the Central Bank that they would be subject to two penalties at the end of the period, the first of which is registered by the Central Bank and the second from the PAM, which is believed to be 300 dinars for each employee.
The CBK confirmed that it is not interested in the application of any penalty on the company contrary to the proportion of employment, and that any penalty will be applied in this regard by PAM. The sources pointed out that the role of the CBK is limited to reporting the follow-up required by the Civil Services Commission to indicate whether the exchange company is committed to the percentage of national labor.
On the possibility of allowing exchange companies to extend the deadline for the completion of the national employment rate by an additional 6 months so that they can modify their situation or provide proof of seriousness in an attempt to recruit national manpower, the regulatory body explained that it was also not interested in considering the application of the Federation, as it is within the authority of PAM. It is learned that the Federation of Exchange Companies after clarifications received from the CBK plans to address PAM with an official letter explaining the challenges facing its units in meeting the percentage of national manpower required.
The sources said the Federation will explain the weakness of the salary provided in this sector, and the nature of the work of exchange companies, which work in two shifts extended to 8 hours six days a week at the top of other challenges. Sources pointed out that it is difficult for exchange companies to appoint Kuwaitis at a maximum salary of 300 dinars per month, and to force them to double the salary which will put an additional burden on their work to the limits that will create new challenges that threaten the continuity of the sector in full and affect the business environment in Kuwait.