Saudi Arabia seizes 37 recruitment offices over labour law violations

The move is a key part of the ministry’s ongoing drive to tighten oversight of the recruitment sector, raise compliance standards, and safeguard the rights of all stakeholders. 

According to the ministry’s statement, violations uncovered during the inspection included breaches of recruitment and labour service regulations, delays in refunding payments owed to clients, and failure to address beneficiary complaints. As a result, the ministry suspended the operations of 10 recruitment offices and revoked the licenses of 27 others that failed to rectify violations within the specified timeframe. 

The ministry said the crackdown forms part of a broader strategy to enhance transparency, ensure fair practices, and improve the efficiency of services offered to clients and workers alike. “Our aim is to regulate practices and ensure the protection of all contractual parties, contributing to a structured and transparent work environment,” the statement read. 

Reaffirming its zero-tolerance approach to non-compliance, MHRSD emphasized that inspections will continue on a regular basis, with statutory penalties imposed on any entities found violating regulations. 

During its second-quarter inspections, the Ministry cracked down 18 recruitment firms across Saudi Arabia after uncovering repeated violations, of which 17 offices were immediately suspended, while one had its license revoked after failing to correct violations within the specified deadline. The breaches included repeated non-compliance with recruitment and labor service regulations, despite prior warnings from authorities. 

During the first quarter of 2025, the ministry had penalized 15 firms for similar violations, revoking the licenses of five for continued non-compliance. 

At the end of 2024, the ministry reported that 86 new recruitment offices had been established since 2022, but expressed concern that around 80% of all recruitment offices were not fully adhering to regulatory requirements. 

The Ministry urged individuals and businesses seeking recruitment services to use “Musaned,” the national platform authorized for managing recruitment processes. The platform enables users to contract electronically with approved service providers and includes tools for tracking, evaluation, and reporting complaints.

It asked beneficiaries to report any such violations through the unified helpline (920002866) or via the “Musaned” mobile application. 

This latest enforcement action underscores Saudi Arabia’s push to strengthen governance in the labor market and ensure the ethical, transparent operation of recruitment firms — a crucial step as the Kingdom continues to reform and modernize its employment ecosystem.