In a move to tighten labour market oversight, Saudi Arabia has revised its labour penalty framework, introducing stricter fines for employment violations. The changes were announced by the Ministry of Human Resources and Social Development to strengthen regulation and improve labour market stability.
Under the updated rules, employers will face a fine of SR10,000 for hiring a foreign worker without a valid work permit. The revised schedule also penalises companies that fail to electronically document employment contracts and addresses other employment-related violations.
Labour Minister Ahmed Al Rajhi issued the decision as part of broader efforts to enhance labour market growth and compliance.
Authorities will now classify employing a child under 15, in violation of Article 167 of the Labour Law, as a serious offence. Establishments with 50 workers or more may face fines of up to SR2,000 in such cases.
Employers who retain a worker’s passport or residency permit will be fined SR3,000 per worker. Companies that violate rules governing the employment of juveniles under Chapter 10 of the Labour Law may face a penalty of SR1,500 per violation.
The ministry has also introduced a SR1,000 fine per worker for failing to grant statutory maternity leave. Establishments employing 50 or more women and having at least 10 children under the age of 6 are required to provide childcare facilities or a nursery. Non-compliance will attract a SR3,000 fine.
Additionally, employers who do not electronically document employment contracts will face a penalty of SR1,000 per worker.
Heavy penalties for unauthorised recruitment
The revised framework includes stringent action against unauthorised recruitment. Individuals found employing or recruiting Saudi nationals or foreign workers without proper authorisation will face a fine of SR200,000 for a first offence.
The updated penalty structure reflects the kingdom’s ongoing efforts to enforce compliance and strengthen labour market governance.
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