Saudi Gazette report

RIYADH — The Ministry of Human Resources and Social Development announced its intention to impose penalties on employers in the event of their violations of the Labor Law and its executive regulations as well as ministerial decisions.

It stated that the penalty does not exceed half of the maximum limit for the two penalties contained in subparagraphs A and B of Article 229 of the Labor Law. There are also violations that exceed half of the maximum limit.

Establishments with less than or more than 10 workers will be penalized with a fine of SR50,000 in the event of submitting incorrect information to the ministry, with the motive of gaining undue benefits and services.

Establishments with less than or more than 10 workers will be penalized with a fine of SR20,000 in the event of committing any of the following violations: selling or brokering work visas; employing a non-Saudi worker without obtaining either a work permit or notifying Ajeer portal; employing a worker without obtaining a professional work permit in professions that are restricted to Saudis or without renewing it in accordance with the requirements of the ministry.

A fine of SR25000 will be slapped on establishments with more than 10 workers in the event of not arranging a childcare facility. The same fine will be slapped establishments with 50 female workers or more in the event of failure to set up a nursery. This will be applicable if the number of children of female workers under the age of six years is 10 or more.

An establishment with less than 10 workers will be penalized with a fine of SR5,000 and an establishment with more than 10 workers will be penalized with a fine of SR10,000 in the event that the employer does not comply with the rules of occupational protection, safety and health approved by the ministry, in addition to taking the necessary precautions to protect workers in all their activities.

The same fines will be imposed if they failed to comply with the provisions and instructions approved by the ministry for the employment of workers in mines and quarries, or if there is not a sufficient number of security guards or an appropriate electronic security system for all establishments, including workplaces and warehouses.

The draft ministerial decision also specified other violations and the value of the penalties related to them, which ranged between SR1,000 and SR30,000 and the fines will be imposed on the firms in accordance with the number of their workers.

The draft ministerial decision stipulates the imposition of a fine of SR10,000 on an establishment that engages in employing Saudis without a license, or that engages in recruiting laborers or providing labor services without a license. The penalty also includes closing the firm on a permanent basis.

Fines will be ranging between SR5,000 and SR30,000 for a number of violations, and that included practicing an unlicensed activity or service, or continues engage in any of the licensed activities after slapping the penalty of closure, suspension or cancellation of the license.

The draft ministerial decision also stipulates that offices and companies that engage in employing Saudis without a license from the ministry, or brokering recruitment of workers or providing labor services without a license, shall be imposed with a fine of SR10,000.

The draft decision stressed that the violator has to clear the violation within 10 working days from the date of imposing the penalty on him, and in the event that it is not removed within the said period, the ministry has the right to double the penalty. However, the offender can submit his objection against the administrative decision to the competent authority at the ministry within 60 days from the date of notification of the decision.

The violator has to pay the value of the fine imposed on him within 60 days from the date of the notification of the administrative decision or the final ruling of a court. In the event of non-implementation of this during this period, the ministry’s services will be suspended for him until the value of the fine is paid, noting that the grievance before the competent administrative court does not stop the implementation of any decision unless by a decision of that court to stay its implementation.