Saudi Crackdown: Over 100,000 Firms Found in Violation of Labor Laws

In a sweeping crackdown on labor law violations, Saudi Arabia’s Ministry of Human Resources and Social Development has uncovered non-compliance in 107,329 establishments across the Kingdom. These findings emerged from an extensive series of inspections that scrutinized more than 700,200 private sector companies from the start of 2024 to mid-July.

The inspection blitz is part of the ministry’s broader initiative to enforce labor regulations and ensure that businesses adhere to the Kingdom’s legal framework. Among the violations were cases involving delayed salary payments, failure to meet wage increase requirements, and illegal employment of non-Saudi nationals in jobs reserved exclusively for citizens.

Specifically, 59,891 firms were found guilty of not implementing the mandated wage increases, while 16,295 cases revealed employees who had not received their due salaries. Additionally, 7,662 instances of foreigners being employed in roles designated for Saudis were documented.

In response to these infractions, the ministry issued 88,776 warnings to the offending establishments. The intensified monitoring also led to the identification of 9,712 new job opportunities for Saudi citizens and helped achieve targeted Saudization rates across multiple sectors.

The ministry reported a compliance rate of 93.5 percent among businesses required to Saudize professions. This effort included 840 inspections of petrol stations and service centers, with ongoing inspections continuing across the Kingdom’s regions and governorates.

Authorities have urged the public to report any labor law violations by calling the unified number 19911 or using the ministry’s mobile app, as the Kingdom strengthens its oversight of labor practices.

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