Saudi Arabia Revises Labour Fines; SR 10,000 Penalty for Hiring Workers Without Permits

Saudi Arabia has significantly updated its schedule of labour violations, introducing a suite of fines aimed at streamlining the employment market. According to a decree issued by Ahmed Al Rajhi, Minister of Human Resources and Social Development, employing a non-Saudi worker without a valid work permit will now attract a fine of SR 10,000.

Key Penalties in the Revised Schedule:

  • Document Retention: Employers found withholding a worker’s passport or residency permit (Iqama) face a penalty of SR 3,000 per worker.
  • Child Labour: Employing children under 15 is strictly prohibited, with fines up to SR 2,000 for larger establishments.
  • Maternity & Childcare: Failure to grant statutory maternity leave carries a SR 1,000 fine, while larger companies failing to provide mandatory childcare facilities face a SR 3,000 penalty.
  • Contract Documentation: Failure to electronically document employment contracts will result in a fine of SR 1,000 per worker.

The Ministry has also cracked down on unauthorised recruitment. Individuals or entities engaging in recruitment without proper authorisation will face a staggering SR 200,000 for the first offence, escalating to SR 250,000 for a third violation. ( Gulf News)

For more details: Navamalayalam.com