Economy Policy
Saudi Arabia revises penalties for maternity leave, childcare and other labour violations

Workplace governance rules have also been tightened, and employers who fail investigate misconduct within five working days will be fined between SR1,000 and SR3,000.
Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has rolled out an updated schedule of labour violations and penalties, introducing sharper fines for employers who fall short of legal and regulatory obligations.
The revisions follow a recent public opinion survey conducted by the ministry, and one of the most key updates is a SR200,000 fine for employing Saudi nationals without the required licence. Moreover, allowing any worker to leave their employer and work for another entity without authorisation will now attract penalties ranging from SR10,000 to SR20,000.
The ministry has also strengthened protections for working women. Failure to comply with maternity leave provisions is classified as a “serious” violation, carrying a SR1,000 fine for each affected employee.
In addition, establishments with 50 or more female employees and at least 10 children under six will face a SR3,000 penalty if they do not provide childcare or nursery facilities.
Workplace governance rules have also been tightened. Employers who fail to form a committee to investigate misconduct, or who neglect to complete investigations and issue recommendations within five working days will be fined between SR1,000 and SR3,000.
And environmental compliance is included as well, with a SR500 fine for failing to meet internal or external environmental requirements.
The steepest penalties, ranging from SR200,000 to SR250,000, target companies that engage in recruitment, outsourcing or labour services without obtaining the proper licence from the ministry.
Announcing the updated schedule of violations and penalties for the labour law and its executive regulations on the “Isttlaa” platform, the Ministry said, "The project aims to update the schedule of violations and penalties based on the new amendments to the Labour Law and its executive regulations, in order to clearly and precisely define violations for both establishments and inspectors, ensuring consistent application of the rules across different types of establishments and reducing personal judgment or discretion."
"The updates also help address changes in the work environment, such as flexible work and remote work, while clarifying penalties to enhance transparency, encourage employer compliance, and safeguard the rights of both workers and employers," it added.
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