Ministry of Human Resources proposed revision of the penalties for violations of Labor Law

The penalties for breaking the Labor Law and its executive regulations have been proposed to be revised by the Ministry of Human Resources and Social Development. The list of infractions and sanctions has been updated by Minister of Human Resources and Social Development Ahmed Al-Rajhi in light of the recent changes to the Labor Law and its executive rules. To get the public's and stakeholders' feedback before enacting the new recommendations, the Ministry posted the table of infractions and penalties on the Istithlaa public survey platform.

In order to reduce the need for discretion and individual judgment when enforcing regulations across various kinds of businesses and establishments, the ministry stated that this update attempts to accurately and clearly specify infractions for both inspectors and establishments. Continuous developments in the workplace, such remote and flexible employment, are addressed by these updates. Clarifying the penalties promotes transparency, encourages businesses to follow rules, and protects the rights of both employers and employees.

Depending on whether an establishment is classified as having 20 or fewer employees, 21 to 49 employees, or 50 or more employees, different fines are applied. Additionally, the infractions are categorized as mild and serious.

The following are the fines for various serious Labor Law violations:

1- The penalties for recruiting, outsourcing, or providing labor services without a license range from SR200,000 to SR250,000.

2- SR200,000 for hiring Saudi nationals without a permit

3- Employers who hire non-Saudi workers without a work permit face SR10,000. Depending on the number of employees, the fines will be compounded.

4- Employers who register a Saudi employee without a legitimate employment relationship or hire non-Saudi employees in occupations or activities that are only open to Saudi nationals face fines of SR2,000 to SR8,000.

5- SR10,000 to SR20,000 for an employer who permits their staff to work for themselves or for a third party.

6- SR5000 for an employee working for another employer.

7- If the employer disregards workplace safety and health regulations, he could face SR1,500 to SR5,000.

8- SR1,000 for hiring a worker without taking any safety precautions in the sun or in bad weather.

9- SR1,000 to SR3,000 for the employer's failure to pay the necessary fees and expenditures or to transfer them to the employees.

10- SR300 for withholding wages or failing to pay workers' entitlements and wages on time; this amount may be increased by the number of employees.

11- SR1000–SR3000 for any employer-perpetrated discrimination.

12- SR1000–SR3000 for not establishing a committee to look into behavioral infractions, failing to look into and suggest disciplinary action within five days, or failing to implement disciplinary action within thirty days.

13- SR 1,000 to SR 2,000 for hiring minors under the age of fifteen

14- SR1,000 for retaining a worker's residency permit or passport.

15- For failing to assist supervisors and personnel tasked with monitoring, SR3000–SR5000

16- SR 1,000–3,000 for violating the rules for posting job openings and holding interviews

17- SR1000 for not granting working women maternity leave

18- SR500 for neglecting to make accommodations and offer services that would allow those with impairments to carry out their jobs.

Fines for the non-serious violations include the following:

1- SR1000–SR3000 for not giving the employee the authorized weekly rest break, for working more hours without getting paid more, or for not following the daily rest intervals.

2- SR1000–SR3000 for the employer's failure to return the employee's documentation and issue a service certificate following the end of the employment relationship

3- SR300 to SR1000 for not offering workers' and their families' health insurance.

4- SR300–SR1000 for omitting to provide information on contracts for operations and maintenance with government organizations or businesses in which the state owns at least 51% of the business, or for disclosing inaccurate or partial information

5- SR1000 for hiring Saudi men to perform tasks that are only available to Saudi women.