Saudi Arabia revises labour penalties, sets SR10,000 fine for hiring foreign workers without permits

Dubai: Saudi Arabia has amended its schedule of labour violations and penalties, introducing updated fines including a SR10,000 penalty for employing a non-Saudi worker without a valid work permit.

The decision was issued by Ahmed Al Rajhi, Minister of Human Resources and Social Development, as part of efforts to enhance the stability and growth of the labour market, the ministry said.

Under the revised schedule, employing a child under the age of 15 in violation of Article 167 of the Labour Law is classified as a serious offence, with fines reaching SR2,000 for establishments employing 50 workers or more.

Employers found retaining a worker’s passport or residency permit face a fine of SR3,000 per worker. Companies that fail to comply with regulations governing the employment of juveniles under Chapter 10 of the Labour Law may be fined SR1,500 per violation.

Failure to grant statutory maternity leave to female employees carries a fine of SR1,000 per worker. Establishments employing 50 or more women, with at least 10 children under the age of six, must provide childcare facilities or a nursery; non-compliance may result in a SR3,000 penalty.

Employers who fail to electronically document employment contracts face fines of SR1,000 per worker.

The updated schedule also imposes heavy penalties for unauthorised recruitment activities. Individuals engaging in the employment or recruitment of Saudi nationals or foreign workers without proper authorisation face fines of 200,000 riyals for a first offence, rising to SR220,000 for a second and SR250,000 for a third violation.