RIYADH: Saudi Arabia’s Ministry of Human Resources and Social Development has recommended new penalties for offences against Labour Law and its rules. Minister Ahmed Al-Rajhi announced this update, which aims to clarify and define offences more clearly for both businesses and inspectors. This goal is to lessen personal bias in enforcement, increase transparency and adapt to new work trends such as flexible and remote work. The proposed penalties are currently available on the Istithlaa platform for public feedback before being implemented.
Violations are categorised as serious and non-serious with fines based on the size of the firm: 20 or less workers, 21 to 49 workers and 50 or more workers. Serious violations have the highest penalty.
It includes:
| Violations | Penalties |
| Running labour recruitment or outsourcing services without a license | SR200,000 – SR250,000 |
| Employing Saudi nationals without required license | SR200,000 |
| Non-Saudi worker hired without a work permit (Fines will multiplied by the number of workers) | SR10,000 |
| Hiring non-Saudis for jobs reserved for Saudis or falsely registering Saudis | SR2,000 – SR8,000 |
| Allowing employees to work for third parties or independently | SR10,000 – SR20,000 |
| Failing to adhere to occupational safety and health standards | SR1,500 – SR5,000 |
| Delayed or withheld wages | SR300 per worker |
| Discriminatory practices or procedural failures in misconduct investigations | SR1,000 – SR3,000 |
Non-serious violations include fines to not grant weekly rest, failure to provide service certifications, lack of medical insurance, or failure to disclose contract information. These violations could give a penalty of SR300 to SR3,000.
According to the Ministry, these reforms will improve legal clarity, promote fair labour practices, and secure the rights of workers and employers. Stakeholders and the public are asked to give their feedback before the new penalties are finalised.
