New Rules, New Fines: Saudi Arabia Targets Labor Law Violations with Overhaul

Saudi Arabia’s Ministry of Human Resources and Social Development has rolled out a draft overhaul of penalties for violations of the Labor Law, aiming to replace ambiguity with clarity and tighten the reins on regulatory breaches. The proposed changes, now up for public feedback on the Istithlaa platform, offer a meticulous breakdown of offenses and associated fines tailored to the size of the violating company.

At the heart of the update is a recalibration of the punishment system—serious violations carry weighty consequences, and the degree of financial sting depends on whether the company employs fewer than 20, between 21 and 49, or 50 or more workers. The ministry’s goal? Minimize guesswork for inspectors, keep employers in check, and ensure that Saudi labor rights keep pace with evolving workplace models like remote and flexible work.

What’s on the chopping block?
Here’s a snapshot of some of the most significant proposed fines:

  • SR200,000–SR250,000: Operating as a labor services provider without a license.
  • SR200,000: Employing Saudis without proper authorization.
  • SR10,000 per worker: Hiring a non-Saudi without a work permit.
  • SR2,000–SR8,000: Placing non-Saudis in Saudi-only roles or fraudulently registering Saudis.
  • SR10,000–SR20,000: Letting employees moonlight for third parties or for themselves.
  • SR5,000: Employees caught working for someone else.
  • SR1,500–SR5,000: Flouting occupational safety standards.
  • SR1,000: Making workers labor under the blazing sun without safeguards.
  • SR300: Delaying or denying wages—multiplied by the number of affected employees.
  • SR1,000–SR3,000: Engaging in workplace discrimination or ignoring misconduct investigations.
  • SR1,000: Employing under-15s or holding on to workers’ passports.
  • SR3,000–SR5,000: Obstructing government labor inspectors.
  • SR1,000–SR3,000: Skipping job posting rules or dodging interview protocols.
  • SR1,000: Failing to provide maternity leave.
  • SR500: Not supporting workers with disabilities.

Lighter infractions, but still costly:
Non-serious breaches don’t go unnoticed either:

  • SR1,000–SR3,000: Skimping on rest periods or unpaid extra hours.
  • SR1,000–SR3,000: Withholding employment documents after termination.
  • SR300–SR1,000: Failing to provide health insurance for workers and families.
  • SR300–SR1,000: Concealing details on contracts with state-affiliated firms.
  • SR1,000: Placing Saudi men in jobs earmarked for Saudi women.

This sweeping review is meant to codify expectations, enforce fairness, and ensure that employers—large and small—know exactly where the lines are drawn. With the public now invited to weigh in, the message is clear: Saudi Arabia is reshaping its labor landscape, and there’s no room for cutting corners.

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