Saudi Arabia has introduced strict penalties for employers hiring non-Saudi workers without a valid work permit. Under the updated Labour Law regulations, violators will face fines of SR10,000 per worker. The new measures aim to strengthen labour market compliance and protect workers’ rights.
Key Labour Law Amendments and Penalties
Minister of Human Resources and Social Development, Eng. Ahmed Al-Rajhi, formalized these amendments through a ministerial decree. The changes reflect Saudi Arabia’s ongoing commitment to a stable and sustainable work environment.
Employing children under 15 years is now considered a serious offence under Article 167 of the Labour Law. Companies with 50 or more employees may face fines of up to SR2,000 for such violations. Similarly, employers who retain passports or residency permits (iqamas) of employees will incur SR3,000 per worker, calculated based on the number affected.
The revised schedule also addresses violations concerning labour contracts. Employers failing to document contracts electronically will face fines of SR1,000 per employee. Non-compliance with maternity leave regulations will result in penalties of SR1,000 per female employee, while companies employing over 50 female workers must provide childcare facilities if 10 or more children under six are present. Failure to comply will lead to a SR3,000 fine.
Moreover, unauthorized recruitment or subcontracting of Saudi or foreign workers carries severe penalties. Offenders face SR200,000 for the first violation, SR220,000 for the second, and SR250,000 for the third. These measures are designed to ensure accountability and improve operational transparency.
Clarifying Categories of Violations
The amendments also reclassified nine categories of labour violations to offer clarity to both employers and employees. These categories include general operational violations, mining and quarrying operations, maritime employment contracts, maintenance activities, recruitment regulations, domestic worker regulations, advertisements for support labour, employment of Saudis or foreign workers without authorization, and violations involving agricultural and private shepherd workers.
These reforms are expected to reinforce workforce rights, increase compliance awareness, and enhance overall workplace efficiency. By implementing clear guidelines and strict penalties, Saudi Arabia aims to create a fair, accountable, and sustainable labour market for both employers and employees.
