Saudi Arabia has revised its labour law penalties, introducing stricter fines to improve compliance and protect workers. The updated schedule includes a SR10,000 fine for employing foreign workers without valid permits, reinforcing the government’s push to stabilise and grow the labour market.
Employing children under 15 is now classified as a serious offence, with fines of SR2,000 for establishments with 50 or more workers. Employers who retain passports or residency permits face penalties of SR3,000 per worker. Companies that fail to follow rules on juvenile employment may be fined SR1,500 per violation.
Women’s rights in the workplace are also addressed. Employers who deny statutory maternity leave will be fined SR1,000 per worker. Workplaces with 50 or more female employees and at least 10 children under six must provide childcare facilities or nurseries; non-compliance carries a SR3,000 fine.
The new rules also require employers to electronically document employment contracts, with fines of SR1,000 per worker for failure to comply.
Heavy penalties have been introduced for unauthorised recruitment. Individuals engaging in recruitment without proper authorisation face fines of SR200,000 for a first offence, SR220,000 for a second, and SR250,000 for a third.
These changes, announced by the Minister of Human Resources and Social Development, aim to create a more transparent and fair labour environment. By tightening enforcement and introducing higher penalties, Saudi Arabia is working to safeguard workers’ rights, ensure proper documentation, and strengthen the overall stability of its labour market.