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Saudi Arabia to introduce stricter labour fines, penalties to ensure workers’ rights

  • The companies will face fines for infringements, including the employment of foreign workers without proper permits and disregard for health and safety protocols
  • Fines ranging from $400 to $1,333 will be slapped for non-compliance with official health and safety regulations, coupled with inadequate measures to protect workers

Riyadh, Saudi Arabia – The Saudi Ministry of Human Resources and Social Development (MHRSD) is set to introduce a system of fines and penalties targeting employers who breach labor regulations, a report in Saudi Gazette said.

The changes encompass a wide array of labor-related violations: The companies will face fines for a spectrum of infringements, including the employment of foreign workers without proper permits, disregard for health and safety protocols leading to on-site accidents, recruitment of underage workers, lack of adequate childcare support, withholding of passports, and non-payment of wages.

Key fines highlighted in the report include:

A fine of SR5,000 ($1,333) for hiring non-Saudi individuals without the requisite work permits, failing to notify the Ajeer program.

Fines ranging from SR1,500 ($400) to SR5,000 ($1,333) for non-compliance with official health and safety regulations, coupled with inadequate measures to protect workers.

A SR5,000 ($1,333) fine for companies with more than 50 employees that do not provide designated childcare facilities or nurseries.

Fines ranging from SR1,000 ($267) to SR2,000 ($533) for the employment of children under the age of 15.

A fine of SR1,000 ($267) for employing women within the first six weeks following childbirth.

A penalty of SR1,000 ($267) for retaining an employee’s passport or residency permit.

A fine of SR300 ($80) for failing to deposit salaries in the designated accounts on agreed-upon dates.

The report highlights a significant stride towards gender equality in the workplace. Companies that discriminate between male and female workers, whether in employment conditions or recruitment advertisements, will be subject to fines amounting to SR3,000 ($800).