Saudi Gazette report

RIYADH — The Ministry of Human Resources and Social Development has proposed revision of the penalties for violations of Labor Law and its executive regulations. Minister of Human Resources and Social Development Ahmed Al-Rajhi has decided to update the list of violations and penalties, based on the new amendments to the Labor Law and its executive regulations. The Ministry published the table of violations and penalties on the Istithlaa public survey platform, seeking the opinion of the stakeholders and the public before implementing the new proposals.

The ministry noted that this update aims to clearly and precisely define violations for both establishments and inspectors, reducing the need for discretion and personal judgment in implementing regulations across different categories of companies and establishments. These updates help address ongoing changes in the work environment, such as flexible work and remote work. The clarification of penalties provides transparency, encouraging establishments to comply with regulations and ensuring the rights of both workers and employers.

The table published by the ministry includes a wide range of violations, ranging from serious to minor. The fines imposed vary based on the establishment's classification into one of three categories: establishment with 20 or less than 20 workers; 21 to 49 workers; and 50 or more workers. The violations are also classified as serious and minor.

The following are the fines for various serious Labor Law violations:

1- SR200,000—SR250,000 for practicing the activity of recruiting, outsourcing, or providing labor services without a license.

2- SR200,000 for employing Saudis without a license

3- SR10,000 for an employer for hiring a non-Saudi worker without a work permit. The fines will be multiplied on the basis of the number of workers.

4- SR2,000—SR8,000 for employer for hiring non-Saudi workers in professions or activities restricted to Saudis, or registering a Saudi worker without a valid employment relationship.

5- SR10,000—SR20,000 for an employer allowing his employee to work for a third party or for their own account.

6- SR5000 for an employee working for another employer.

7- SR1,500—SR5,000 for the employer if he fails to comply with occupational safety and health regulations.

8- SR1,000 for employing a worker under the sun or in adverse weather conditions without taking precautions.

9- SR1,000—3,000 for the employer's failure to bear the fees and costs required or to pass them on to the workers

10- SR300 for the failure to pay workers' wages and entitlements on time or withholding wages, which may be multiplied by the number of workers.

11- SR1000—SR3000 for any discriminatory action by an employer.

12- SR1000—SR3000 for failure to form a committee to investigate behavioral violations, as well as for failure to investigate and recommend disciplinary action within five days, or failure to impose disciplinary action within 30 days

13- SR1,000 to 2,000 for employing children under the age of 15

14- SR1,000 for keeping worker's passport or residency permit.

15- SR3000—SR5000 for failure to facilitate the tasks of supervisors and employees assigned to supervision

16- SR1,000—3,000 for failure to comply with the regulations for advertising job vacancies and conducting interviews

17- SR1000 for failure to provide maternity leave for working women

18- SR500 for failure to provide services and facilitate arrangements to enable people with disabilities to perform their work.

Fines for the non-serious violations include the following:

1- SR1000—SR3000 for failure to grant the worker the approved weekly rest period, or increasing work hours without additional payment, or failing to adhere to daily rest periods

2- SR1000—SR3000 for employer's failure to provide a worker with a service certificate and return their documents after the termination of the employment relationship

3- SR300—SR1000 for failure to provide medical insurance for the workers and their family members.

4- SR300—SR1000 for failure 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

5- SR1000 for employing Saudi male workers in activities restricted to Saudi female workers.