Saudi Arabia Updates Labor Law Fines: What Employers Need to Know

The Ministry of Human Resources and Social Development (MHRSD) announced updates to the Schedule of Violations and Penalties under the Labor Law, following a public opinion survey.

The changes clarify fines for employers who break labor regulations.

Here’s a breakdown of the key updates

• Hiring Saudis without a license: Fine of SR 200,000.

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• Allowing a worker to leave for another employer: Fine of SR 10,000–20,000.

• Ignoring maternity leave rules: Considered a “serious” violation; fine of SR 1,000 per affected employee.

• No childcare for large female workforce: If a company has 50+ female employees with 10+ children under sixbut no nursery or childcare facility, the fine is SR 3,000.

• Workplace misconduct investigations: Failing to form a committee or complete investigations within five working days can result in a fine of SR 1,000–3,000.

• Environmental compliance: Not meeting internal or external environmental standards carries a SR 500 fine.

• Recruitment, outsourcing, or labor services without a ministry license: Fine of SR 200,000–250,000.

These updates are part of the ministry’s efforts to ensure fair, safe, and responsible labor practices across the Kingdom.

Employers are encouraged to stay informed and comply to avoid penalties