In a significant move to bolster workers’ rights and tighten labor market regulations, Saudi Arabia has announced stringent penalties targeting employers who unlawfully retain worker passports or iqamas, as well as those who employ non-Saudi workers without the necessary permits. This development forms part of a wider government initiative aimed at creating a fairer and more transparent work environment across the Kingdom.
The updated legal framework stipulates that employers found hiring foreign workers without valid work permits will be subjected to fines amounting to SR10,000 per violation. This adjustment comes under the revised schedule of violations and penalties, which has been officially endorsed through a ministerial decree issued by Eng. Ahmed Al-Rajhi, the Minister of Human Resources and Social Development. The minister emphasized that these reforms are designed to stabilize the labor market, enhance workplace conditions, and support sustainable economic growth within Saudi Arabia.
Moreover, the new regulations address the issue of child labor with increased severity. Employing children under the age of 15 is now classified as a serious offense, carrying fines up to SR2,000 for companies employing 50 or more workers. This reflects the government’s commitment to enforcing child protection laws and ensuring that minors are not exploited in the workforce.
Another critical aspect of the updated penalties concerns the illegal retention of workers’ passports or residency permits (iqamas). Employers who withhold these essential documents will face fines of SR3,000 per affected employee, with the total penalty scaling the number of workers involved. This measure aims to prevent the common practice of restricting workers’ freedom of movement and to uphold their fundamental rights.
Employers are also required to adhere strictly to labor contract documentation rules. Failure to properly document contracts will result in a fine of SR1,000 per employee. Additionally, companies that neglect to provide legally mandated maternity leave will be fined SR1,000 for each female employee affected. These provisions are part of a broader effort to align workplace practices with international labor standards and protect employee welfare.
In terms of workplace facilities, establishments employing 50 or more female workers must now ensure the availability of childcare services or nurseries if there are at least 10 children under six years old belonging to female employees. Non-compliance with this requirement will attract a fine of SR3,000. This rule underscores the government’s recognition of the importance of supporting working mothers and promoting gender inclusivity in the labor market.
The revised regulations also impose penalties on unauthorized recruitment activities. Individuals or entities involved directly or indirectly in hiring Saudi nationals, recruiting foreign workers, or subcontracting these processes without official authorization face escalating fines starting at SR200,000 for the first offense, increasing to SR220,000 and SR250,000 for subsequent violations. These measures are intended to curb illegal labor practices and ensure that recruitment processes remain transparent and regulated.
Overall, the ministerial decree reflects Saudi Arabia’s ongoing efforts to reinforce labor market stability, protect workers’ rights, and improve the overall attractiveness and flexibility of the employment environment. By implementing these comprehensive penalties, the government aims to enhance operational efficiency within establishments and promote the long-term sustainability of the Kingdom’s workforce.
