RIYADH — Employers face a SR10,000 fine for hiring non-Saudi workers without a valid work permit. This measure forms part of the updated schedule of violations and penalties under the Labor Law and its implementing regulations.
The Minister of Human Resources, Social Development and Engineering, Ahmed Al-Razi, issued a ministerial decree formalizing these amendments. The revisions reflect the Department’s continued efforts to improve working conditions while strengthening stability and promoting sustainable growth.
Under the revised schedule, employing children under the age of 15 in violation of Article 167 of the Labor Code will be considered a serious crime. Businesses employing 50 or more workers can be fined up to R$2,000 for such violations.
Employers who hold passports or residence permits (iqama) for workers are subject to a fine of 3,000 Saudi Riyals per worker, with the total fine calculated based on the number of affected employees.
Failure to comply with the provisions governing the employment of minors set out in Chapter 10 of the Labor Code is punishable by a fine of R1,500 per minor. Employers who do not document labor contracts are subject to a fine of SR1,000 per employee.
Employers who fail to provide maternity leave as required will be subject to a fine of R1,000 for each affected female employee. In addition, establishments with 50 or more female employees must set up a childcare facility or daycare center if their female employees have 10 or more children under the age of 6. Violations will result in a fine of R3,000.
The penalty for failing to electronically document an employee contract is SR1,000 per employee.
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According to the revised schedule, individuals who directly or indirectly engage in the employment of Saudi nationals, the recruitment of foreign workers, or the subcontracting of such activities without proper authorization will be subject to a fine of 200,000 riyals for the first offense, 220,000 riyals for the second offense, and 250,000 riyals for the third offense.
This ministerial decision aims to strengthen labor market stability, protect workers’ rights and make the working environment more attractive and flexible. These initiatives are expected to contribute to improved efficiency and long-term sustainability at our offices.
The amendments also include reclassifying nine categories of violations based on the nature of the activity, making it clearer for facilities and employees to understand and comply with the regulations. These categories include general violations across all activities. Violations related to mining and quarrying operations. Violation of maritime employment contract regulations. Violations related to operation and maintenance activities. Violation of regulations governing recruitment and labor services (employment agencies and recruitment agencies). Violations related to recruitment agencies. Violations under the Domestic Workers Regulations. Violations related to advertising supported labor services Violations involving the employment of Saudi nationals, recruitment of workers, or unauthorized outsourcing. Offenses related to agricultural workers, civilian shepherds and similar occupations.
