RIYADH: Saudi Arabia has introduced strict penalties for employers who violate labor regulations, aiming to protect workers’ rights.
Employers in Saudi Arabia will face a fine of SR10,000 for hiring non-Saudi workers without valid work permits. The updated schedule of violations was formalized through a ministerial decree by Eng. Ahmed Al-Rajhi, Minister of Human Resources and Social Development.
The new rules target passport or iqama retention by employers. Companies holding employee documents illegally will be fined SR3,000 per affected worker. Penalties are calculated based on the total number of employees impacted.
Child labor violations are also addressed. Employers hiring children under 15 can face fines up to SR2,000 for establishments with 50 or more workers. Failure to provide maternity leave carries a fine of SR1,000 per affected female employee.
Establishments employing 50 or more female workers must provide childcare facilities if they have 10 or more children under six. Non-compliance results in a SR3,000 fine. Failure to electronically document employee contracts will also lead to a SR1,000 fine per worker.
The updated regulations include heavy fines for unauthorized recruitment or subcontracting activities. Those engaging in such violations face penalties of SR200,000 for the first offense, SR220,000 for the second, and SR250,000 for the third.
Officials say these measures will strengthen labor market stability in Saudi Arabia, safeguard worker rights, and improve workplace efficiency. The initiative also encourages sustainable growth and creates a more flexible work environment.
Analysts note that Saudi Arabia’s new labor penalties reflect the Kingdom’s efforts to align with international labor standards while protecting both domestic and foreign workers. Companies are advised to comply strictly to avoid heavy fines.
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These steps signal Saudi Arabia’s commitment to improving working conditions, ensuring proper documentation, and enhancing employer accountability in all sectors.
