RIYADH — An employer will face a fine of SR10,000 for hiring a non-Saudi worker without a valid work permit. This measure forms part of the updated schedule of violations and penalties under the Labor Law and its executive regulations.

Minister of Human Resources and Social Development Eng. Ahmed Al-Rajhi has issued a ministerial decree formalizing these amendments. The revisions reflect the ministry’s ongoing commitment to enhancing the work environment, while strengthening its stability and fostering sustainable growth.

Under the amended schedule, employing children under the age of 15 in violation of Article 167 of the Labor Law is deemed a serious offense. Companies employing 50 or more workers will be fined up to SR2,000 for such violations.
An employer who retains a worker’s passport or residency permit (iqama) will be subject to a fine of SR3,000 per worker, with the total penalty calculated based on the number of affected employees.

Failure to comply with the provisions governing the employment of minors, as stipulated in Chapter 10 of the Labor Law, will result in a fine of SR1,500 per minor. Employers who fail to document labor contracts will incur a penalty of SR1,000 per employee.

Employers who do not grant maternity leave as required will be fined SR1,000 per affected female employee. Additionally, establishments employing 50 or more female workers must provide a childcare facility or nursery if there are 10 or more children under the age of six belonging to female employees. Non-compliance will result in a fine of SR3,000.

The penalty for failing to electronically document employee contracts is SR1,000 per employee.

According to the revised schedule, individuals who engage—directly or indirectly—in the employment of Saudis, the recruitment of foreign workers, or subcontracting such activities without proper authorization will face fines of SR200,000 for the first offense, SR220,000 for the second offense, and SR250,000 for the third offense.

The ministerial decision is intended to reinforce labor market stability and safeguard workers’ rights, while enhancing the attractiveness and flexibility of the work environment. These efforts are expected to contribute to improved efficiency and long-term sustainability of establishments.

The amendments also include the reclassification of nine categories of violations based on the nature of activities, thereby offering greater clarity to establishments and employees in understanding and complying with the regulations.

These categories include general violations across all activities; violations related to mining and quarrying operations; violations of the Maritime Employment Contract Regulations; violations concerning operation and maintenance activities; violations of regulations governing recruitment and labor services (human resources and recruitment companies); violations related to recruitment offices; violations under the Domestic Workers Regulations; violations concerning advertisements for support labor services; violations involving the employment of Saudis, recruitment of workers, or outsourcing without a license; and violations related to agricultural workers, private shepherds, and similar professions.

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