Saudi Arabia has announced a major overhaul of its labour enforcement penalties, aiming to tighten oversight of employment practices and protect workers’ rights. The Ministry of Human Resources and Social Development declared that employers hiring foreign workers without valid work permits will now face fines of SR10,000 per worker. The move is part of broader reforms designed to strengthen labour market regulation and ensure compliance with the kingdom’s labour laws.
Labour Minister Ahmed Al Rajhi emphasized that the revisions are intended to promote stability and growth within the national labour market. The updated rules target a range of workplace violations, from the employment of minors to improper documentation of contracts. Establishments with 50 or more workers that employ children under 15 in violation of Article 167 of the Labour Law may face fines of up to SR2,000, highlighting a zero-tolerance stance on child labour. Employers who retain workers’ passports or residency permits illegally will incur SR3,000 fines per worker, while violations related to the employment of juveniles under Chapter 10 of the Labour Law carry penalties of SR1,500 per offence.
The new rules also enforce protections for female workers. Employers failing to provide statutory maternity leave will be fined SR1,000 per worker, and companies with 50 or more female employees and at least 10 children under six must provide childcare facilities or a nursery, with non-compliance subject to SR3,000 fines. Additionally, employers who fail to electronically document employment contracts will face SR1,000 penalties per worker.
Unauthorized recruitment is now subject to unprecedented financial penalties. Individuals or companies hiring Saudi nationals or foreign workers without proper authorisation will be fined SR200,000 for a first offence, SR220,000 for a second, and SR250,000 for a third violation. The ministry’s actions reflect a clear message that both domestic and foreign employers must strictly adhere to the kingdom’s labour regulations or face substantial consequences.
