Saudi Arabia has introduced sweeping amendments to its labour violations and penalties schedule, including a SR10,000 fine for employing a foreign worker without a valid work permit.
The decision was issued by Ahmed Al Rajhi, Minister of Human Resources and Social Development, as part of broader efforts to strengthen labour market regulation, protect workers’ rights, and promote a stable business environment.
SR10,000 Fine for Hiring Without Valid Permit
Under the revised framework, employers found hiring a non-Saudi worker without a valid work permit will face a fine of SR10,000 per violation. The move aims to tighten compliance and ensure that all foreign workers are legally authorised to work in the Kingdom.
Officials said the updated penalties are designed to curb irregular employment practices while supporting sustainable economic growth.
Stricter Penalties for Child Labour Violations
The amended schedule classifies the employment of children under the age of 15, in violation of Article 167 of the Labour Law, as a serious offence.
Establishments employing 50 workers or more may face fines of up to SR2,000 for such violations. Authorities reiterated that protecting minors from unlawful employment remains a key priority within the Kingdom’s labour reforms.
Companies that fail to comply with regulations governing the employment of juveniles under Chapter 10 of the Labour Law may be fined SR1,500 per violation.
Fines for Retaining Workers’ Documents
Employers found retaining a worker’s passport or residency permit will face a fine of SR3,000 per worker. The measure reinforces long-standing rules that prohibit confiscation of personal identification documents.
The ministry emphasised that safeguarding workers’ legal rights is central to maintaining transparency and fairness in employment relationships.
Maternity Leave and Childcare Requirements
Failure to grant statutory maternity leave to female employees carries a penalty of SR1,000 per worker.
In addition, establishments employing 50 or more women, with at least 10 children under the age of six, are required to provide childcare facilities or a nursery. Non-compliance may result in a SR3,000 fine.
These provisions are aimed at improving workplace conditions for women and supporting family-friendly policies in line with ongoing social and economic reforms.
Mandatory Electronic Contract Documentation
Employers who fail to electronically document employment contracts will face fines of SR1,000 per worker.
The electronic documentation requirement is part of the Kingdom’s digital transformation strategy, ensuring greater transparency and legal clarity in employment agreements.
Heavy Penalties for Unauthorised Recruitment
The revised schedule also introduces substantial fines for unauthorised recruitment activities.
Individuals engaging in the employment or recruitment of Saudi nationals or foreign workers without proper authorisation face:
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SR200,000 for a first offence
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SR220,000 for a second offence
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SR250,000 for a third offence
Authorities described these penalties as a strong deterrent against illegal recruitment practices that undermine the integrity of the labour market.
Strengthening Labour Market Governance
The Ministry of Human Resources and Social Development said the updated penalties are part of ongoing reforms aimed at enhancing labour market governance, protecting worker rights, and supporting compliant businesses.
