Other employee benefits

KSA HR Ministry proposes stricter penalties for labour violations, Including freelance work, employee safety and maternity leave

By Anjum Khan

The Ministry of Human Resources and Social Development (MHRSD), Saudi Arabia has proposed revised penalties for key violations of Labour Law regulations, primarily targeting unethical employment practices such as disciplinary or behavioral misconduct and failure to provide government-mandated labour benefits.

Minister of KSA HRSD Ahmed Al-Rajhi announced updates to the list of violations and corresponding penalties in line with the recent labour law amendments and executive regulations approved by the Cabinet. Key changes include amendments to 38 articles of the Labour Law regulations, the removal of 7 articles, and the addition of 2 new ones.

In proposing the updated penalties for these Labour Law violations, the Ministry shared the details on the Istithlaa public survey platform and also sought input from key stakeholders, the general public, and the region’s workforce. 

The listed serious violations and revised penalties are as follows:

  • Recruiting, outsourcing, or providing labour services without a license - SR200,000—SR250,000
  • Employing Saudis without a license - SR200,000
  • Hiring a non-Saudi worker without a work permit - SR10,000 (Total fine = SR10,000*the number of workers)
  • Hiring non-Saudi/ Expat workers in professions or activities reserved for Saudi talent, or registering a Saudi worker without a valid employment relationship - SR2,000—SR8,000 
  • Employer allowing his employee to work for a third party or for their own account - SR10,000—SR20,000 
  • Employee found working for another employer - SR5000
  • Employer failing to comply with occupational safety and health regulations - SR1,500—SR5,000 
  • Employing a worker under the sun or in adverse/ harsh weather conditions without taking precautions - SR1,000
  • Employer’s failure to bear the fees and costs required or to pass them on to the worker (asking them to cover costs that employers are legally required to pay—either by paying directly or by deducting the amount from the employee’s salary) - SR1,000—3,000
  • Failing to pay workers' wages and entitlements on time or withholding wages - 10- SR300 (Total fine = SR300*number of workers against whom the violation was done)
  • Employers doing discriminatory action against any employee - SR1000—SR3000 
  • Failing to form a committee to address and investigate behavioural violations and failing to investigate and recommend solutions for disciplinary action within 5 days of report, or failing to implement corrective measures/ disciplinary action within 30 days of report - SR1000—SR3000
  • Hiring minor children i.e. under the age of 15 to work for them - SR1,000 to 2,000
  • Withholding/ Confiscating worker’s passport or residence permit - SR1,000
  • Failing to facilitate tasks of supervisors and employees assigned to supervision - SR3000—SR5000
  • Failure to comply with the regulations for advertising job vacancies and conducting interviews - SR1,000—3,000
  • Failing to comply with maternity leave benefits policy for working women - SR1000 
  • Failure to provide services and facilitate arrangements to enable people with disabilities to perform their work - SR500

The listed non-serious violations and revised penalties are as follows:

  • Failing to grant the worker the approved weekly rest period, or increasing work hours without additional payment, or failing to adhere to daily rest periods - SR1000—SR3000
  • Employers failing to provide a worker with a service certificate and return their documents after the termination of the employment relationship - SR1000—SR3000
  • Failing to provide medical insurance for the workers and their family members - SR300—SR1000
  • Failing to disclose information about operation and maintenance contracts with government agencies or establishments in which the state holds a minimum 51 percent stake or disclosure of incorrect or incomplete information - SR300—SR1000
  • Employing Saudi male workers in activities restricted to Saudi female workers - SR1000

The penalties also vary based on the size of the company, grouped into three categories:

  • Companies with 20 or fewer workers
  • Companies with 21 to 49 workers
  • Companies with 50 or more workers

The Ministry also underlined that the update is meant to "clearly define violations for both employers and workplace inspectors." This helps reduce confusion and limits the need for personal judgment when applying the rules across different types of companies. The changes also reflect the evolving work environment, including flexible and remote work.

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By making the penalties clearer, the update promotes transparency, encourages businesses to follow the rules, and protects the rights of both workers and employers.

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