Saudi Arabia to introduce new fines, penalties for labour law violations

Employers could be subject to fines due to a range of violations, such as unauthorised employment of foreign workers, recruitment of minors, workplace accidents,  passport retention,  inadequate child care assistance, and wage non-payment


Employers in Saudi Arabia can now face fines following the introduction of new penalties and sanctions.. As per a report by the Saudi Gazette, the labour laws of Saudi Arabia have released details about measures taken by ministries concerning penalties for violations.

These penalties will be imposed on employers who hire overseas workers without authorization,  or in case of accidents on duty or at the workplace, hiring of  underage individuals, inadequate childcare support, non-payment of salaries, and the retention of passports.

These fines align with a recent ministerial resolution outlining the penalties for breaches of labour regulations in the country. Sources indicate that penalties have been established by the Ministry of Human Resources and Social Development (MHRSD) for various labour code violations spanning different employment sectors. 

The MHRSD has made a significant move in enforcing labour regulations outlined in ministerial resolution no. 92768. Noteworthy fines include SR5,000 ($1,333) for hiring non-Saudi workers without proper permits and fines ranging from SR1,500 ($400) to SR5,000 ($1,333) for neglecting worker safety.

Employers with over 50 workers face SR5,000 ($1,333) for not offering childcare. Hiring children under 15 results in fines of SR1,000 ($267) to SR2,000 ($533), while employing women within six weeks of childbirth leads to a SR1,000 ($267) fine. Withholding passports carries a SR1,000 ($267) penalty, and failing to pay salaries on time incurs a SR300 ($80) fine. Gender discrimination fines of SR3,000 ($800) reflect a commitment to equality. These fines align with MHRD’s goal to uphold fair labour practices and ensure a balanced work environment in Saudi Arabia.

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