Employers in Saudi Arabia may now face fines as a result of the implementation of new penalties and sanctions. According to the Saudi Gazette, the Saudi labour laws have released details about measures taken by ministries regarding penalties for violations.
Employers who hire overseas workers without authorization, or in the case of accidents on duty or at the workplace, hiring of underage individuals, inadequate childcare support, non-payment of salaries, and the retention of passports, will face these penalties.
These fines are consistent with a recent ministerial resolution outlining the country’s penalties for violations of labour regulations. According to sources, the Ministry of Human Resources and Social Development has established penalties for various labour code violations spanning various employment sectors.
The MHRSD has taken an important step towards enforcing the labour regulations outlined in Ministerial Resolution No. 92768. Notable fines include SR5,000 ($1,333) for hiring non-Saudi workers without proper permits, as well as fines ranging from SR1,500 ($400) to SR5,000 ($1,333) for failing to ensure worker safety.
Employers with more than 50 employees face an SR5,000 ($1,333) fine for not providing childcare. Hiring children under the age of 15 incurs fines ranging from SR1,000 ($267) to SR2,000 ($533), while hiring women within six weeks of childbirth incurs an SR1,000 ($267) fine. Withholding passports is punishable by an SR1,000 ($267) fine, and failing to pay salaries on time is punishable by an SR300 ($80) fine. Fines for gender discrimination of SR3,000 ($800) demonstrate a commitment to equality. These fines are consistent with the MHRD’s goal of ensuring fair labour practises and a balanced work environment in Saudi Arabia.