[Saudi Arabia] Fines of up to SR1 million for hiring workers without open roles

[Saudi Arabia] Fines of up to SR1 million for hiring workers without open roles
25 Mar 2024

In Saudia Arabia, the Ministry of Human Resources and Social Development has consulted public opinion on its plans to amend the Labor Law to take stringent punitive measures against firms and employers hiring workers without having a job for them, Saudi Gazette reports.

The proposed draft law would see substantial fines ranging between SR200000 and SR1 million for employers found in violation. It is part of measures intended to criminalise illegal practices that negatively affect the labour market.

The amendment reportedly criminalises the practice of recruiting professional workers and domestic workers without having a work role for them. In addition, the amendment criminalises the phenomenon of engaging in brokering to provide labour services through an individual or individuals - either citizens or residents - and marketing labour services in violation of residency or labour regulations.

Under the amendment, it would not be permissible for anyone to recruit one or more workers without having a job for them. A fine of not less than SR200000 and not more than SR1 million would be imposed on anyone in breach of its conditions and expatriate violators would also be deported.

Any individual providing labour services in violation of the provisions of the Labor Law or advertising jobs without obtaining a license for the position will be punished with a fine of not less than SR200000 and not more than SR500000 and the violator will be deported if they are an expatriate.

Under the proposed provision of the law, the Ministry of Human Resources and Social Development will be responsible for monitoring and referring violations to the Public Prosecution to examine the prospect of filing a criminal case.

Saudi authorities involved in amending the law reportedly include the Ministry of Commerce, the Ministry of Justice, the Ministry of Interior, the Ministry of Foreign Affairs, the Human Rights Commission, the National Competitiveness Center and the Public Prosecution.


Source: Saudi Gazette

In Saudia Arabia, the Ministry of Human Resources and Social Development has consulted public opinion on its plans to amend the Labor Law to take stringent punitive measures against firms and employers hiring workers without having a job for them, Saudi Gazette reports.

The proposed draft law would see substantial fines ranging between SR200000 and SR1 million for employers found in violation. It is part of measures intended to criminalise illegal practices that negatively affect the labour market.

The amendment reportedly criminalises the practice of recruiting professional workers and domestic workers without having a work role for them. In addition, the amendment criminalises the phenomenon of engaging in brokering to provide labour services through an individual or individuals - either citizens or residents - and marketing labour services in violation of residency or labour regulations.

Under the amendment, it would not be permissible for anyone to recruit one or more workers without having a job for them. A fine of not less than SR200000 and not more than SR1 million would be imposed on anyone in breach of its conditions and expatriate violators would also be deported.

Any individual providing labour services in violation of the provisions of the Labor Law or advertising jobs without obtaining a license for the position will be punished with a fine of not less than SR200000 and not more than SR500000 and the violator will be deported if they are an expatriate.

Under the proposed provision of the law, the Ministry of Human Resources and Social Development will be responsible for monitoring and referring violations to the Public Prosecution to examine the prospect of filing a criminal case.

Saudi authorities involved in amending the law reportedly include the Ministry of Commerce, the Ministry of Justice, the Ministry of Interior, the Ministry of Foreign Affairs, the Human Rights Commission, the National Competitiveness Center and the Public Prosecution.


Source: Saudi Gazette

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