Riyadh, Aug 8 (Arab News): The Ministry of Commerce and Investment announced it had detected 290 cases of illegal employment, but 1,436 companies are employing illegal labor, which compelled the ministry to enact a law that punishes such practice by imposing a penalty amounting to two years in jail and the payment of fines of up to one million riyals, a newspaper reported.

Makkah has the biggest share of illegal employees, with 83 cases referred to the Bureau of Investigation and Public Prosecution, according to ministry statistics.

The Eastern Province came second, with 58 cases, followed by Riyadh with 47.

The ministry's report shows that these companies practice all kinds of commercial, professional, industrial, agricultural, mediation, brokerage, banking, education, medical, media, transport and other activities.

Such companies, said the report, use the name or the commercial registry of the company, be it Saudi or owned by a foreign investor, to enable non-Saudi to work, even though illegal.

A source familiar with the Ministry of Commerce and Investment told the newspaper that the ministry's penalties might reach a 2-year jail term and a fine of SR1 million per violator.

The source said if the violator is not Saudi, he will be deported from the Kingdom, and that the names of the violators will be announced, their commercial activities will be closed down and their names cancelled from the commercial registry. They will be banned from practicing the trade for a period of up to five years.