Fines of up to SR20,000 for allowing employees to work elsewhere

Dubai: Saudi Arabia’s Ministry of Human Resources and Social Development has issued an updated schedule of labour violations and penalties, introducing stricter fines for non-compliant employers following a recent public consultation.
Under the revised penalties, hiring Saudi nationals without the required licence now carries a fine of SR200,000, while allowing any worker to leave their employer to work for another party is punishable with fines ranging from SR10,000 to SR20,000.
The schedule introduces a specific clause addressing violations of maternity leave rights, classifying non-compliance as a “serious” offence subject to a fine of SR1,000 per affected employee. Establishments employing 50 or more women with at least 10 children under six years old will face a SR3,000 fine if they fail to provide nursery or childcare facilities.
Employers who fail to form a committee to investigate workplace misconduct, or who neglect to carry out investigations and issue recommendations within five working days, will be fined SR1,000 to SR3,000.
Additionally, a SR500 fine will be imposed on employers who fail to meet internal or external environmental requirements. Engaging in recruitment, outsourcing or labour services without a ministry licence will attract penalties ranging from SR200,000 to SR250,000 under the updated schedule.
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