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Saudi: Employers face hefty fines, closure of firms for violating labour laws

Web Report/Riyadh
Filed on July 9, 2021

A fine of SR50,000 will be imposed on establishments if they submit incorrect information to the ministry to gain undue benefits and services.


The Saudi Ministry of Human Resources and Social Development aims to impose penalties on employers if they violate the labour laws, ministerial decisions and executive regulations.

A fine of SR50,000 ( Dh48,959 approximately) will be imposed on establishments (with less than or more than 10 workers) if they submit incorrect information to the ministry to gain undue benefits and services.

A fine of SR20,000 (19,583.76 approximately) will be imposed on establishments (with less than or more than 10 workers) for violations including selling or brokering work visas; employing a non-Saudi worker without obtaining either a work permit or notifying the Ajeer portal; employing a worker without obtaining a professional work permit in professions that are restricted to Saudis or without renewing it in accordance with the requirements of the ministry.

Those establishments with more than 10 workers who do not arrange childcare facilities will be fined SR25,000. A similar fine will be imposed on establishments with 50 or more female workers in the event of failure to set up a nursery. This will be applicable if the number of children of female workers under the age of six is 10 or more.

Establishments with less than 10 workers will be penalised SR5,000 and those with more than 10 workers will be penalised with a fine of SR10,000 in the event that the employer does not comply with the rules of occupational protection, safety and health approved by the ministry, in addition to taking the necessary precautions to protect workers in all their activities.

The same fines will be imposed if they do not comply with the provisions and instructions approved by the ministry for the employment of workers in mines and quarries, or if there is insufficient security guards or an appropriate electronic security system for all establishments, including workplaces and warehouses.

The draft ministerial decision also specified other violations and the penalties related to them, ranging between SR1,000 and SR30,000. The fines will be imposed in accordance with the number of workers.

A fine of SR10,000 (9,791.88) will be imposed on an establishment that engages in employing Saudis without a license, or that engages in recruiting labourers or providing labour services without a license. It also includes closing the firm permanently.

Fines will range between SR5,000 (4,895.94 approximately)and SR30,000 (29,375.64) for many violations including practicing an unlicensed activity or service, or engaging in any of the licensed activities after slapping the penalty of closure, suspension or cancellation of the license.

Offices and companies employing Saudis without a license from the ministry, or brokering recruitment of workers or providing labour services without a license, shall be fined SR10,000 (Dh9,791 approximately).

The violator has to clear the violation within 10 working days from the date of imposing the penalty on him, and in case that does not happen, the ministry has the right to double the penalty. However, the offender can submit an objection against the administrative decision to the competent authority at the ministry within 60 days from the date of notification of the decision.

The violator has to pay the fine within 60 days from the date of the notification of the administrative decision or the final ruling of a court. In the event of non-implementation of this during this period, the ministry’s services will be suspended until the fine is paid. The grievance before the competent administrative court does not stop the implementation of any decision unless by a decision of that court to stay it.





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