New labor fines in Saudi Arabia

Published August 20th, 2023 - 10:17 GMT
New labor fines in Saudi Arabia
Saudi Arabia flag with different construction tools on wood background - Shutterstock

ALBAWABA – The Saudi government is introducing major changes to the current labor law and various new labor fines in Saudi Arabia, according to a report published last week by the Saudi Gazette.

According to unnamed Ministry of Human Resources and Social Development sources, new labor fines in Saudi Arabia will be introduced for labour violations across multiple employment segments.

Employers could be fined for employing foreigners without permits, as well as for on-site accidents, hiring minors, insufficient childcare support, withholding passports and not paying wages.

New labor fines in Saudi Arabia
Newcomers and businesses will have to abide by the new labor fines in Saudi Arabia - Shutterstock

Under the new amendments, the ministry has adjusted the labor violations and penalties issued in ministerial resolution No. 92768.

Amounts payable under the new labor fines in Saudi Arabia

The ministry amended the schedule so that the new labor fines in Saudi Arabia shall be as follows:

  • SAR 5,000 ($1,333) for employing a non-Saudi without the correct work permit/notifying the Ajeer program

  • SAR 1,500 ($400) to SAR 5,000 ($1,333) fine for failing to comply with official health and safety rules and not taking the correct steps to protect workers

  • SAR 5,000 ($1,333) fine for employers in companies with more than 50 workers not offering designated childcare place or nursery

  • SAR 1,000 ($267) to SAR 2,000 ($533) for hiring children under the age of 15

  • SAR 1,000 ($267) employing women in the first six weeks after childbirth

  • SAR 1,000 ($267) for withholding an employee passport or residency permit

  • SAR 300 ($80) for failing to pay salary in the agreed account on the dates arranged

Additionally, as per the report, a fine of SAR 3,000 ($800) will be enforced on companies that illegally discriminate between male and female workers, both in the workplace or in recruitment adverts.

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