[Saudi Arabia] Labour law violation fines slashed by up to 94%

In Saudi Arabia, a significant reduction in penalties for violations of the labour law and its executive regulations has been announced. Fines will be cut by up to 94 per cent from the levels set in 2021, Gulf News reports.

The revision was issued by Ahmad Al Rajhi - the Minister of Human Resources and Social Development - fines will be adjusted based on the size and category of establishments.

The penalty for delayed wage and allowance payments to workers will now reportedly be set at SR300 for each worker, regardless of the size of the establishment.

Penalties for late payments previously varied from SR2,000 to SR5,000, depending on the size of the establishment, with higher fines for the larger.

In addition, there was a reduction in fines for employing women during the six weeks post-delivery, set at SR1,000 from the original SR10,000.

Fines for failing to provide medical insurance coverage to workers and their families were also modified.

For smaller establishments with 20 or fewer workers, the fine is SR3,00, increasing to SR500 and SR1,000 for medium and larger establishments, respectively.

The revised fines reportedly include a SR1,000 penalty, regardless of establishment size, for employing Saudi workers in professions reserved exclusively for female Saudi workers.

Before the amendment, these fines ranged from SR2,500 to SR10,000 based on the establishment’s size.

The amendments also drastically cut fines for falsely registering a Saudi worker without actual employment.

Penalties now range from SR2,000 to SR8,000, depending on the size of the establishment, significantly lower than the previous range of SR5,000 to SR20,000.

These amendments are reportedly part of the ministry’s ongoing efforts to review labour market regulations. They are intended to support the stability and growth of establishments, protect workers’ rights, and enhance the labour market’s attractiveness and flexibility.

The new fine structure takes into account the varying sizes of private sector establishments. They are categorised into three groups, based on the number of workers, to ensure compliance and support for businesses.

Source: Gulf News

In Saudi Arabia, a significant reduction in penalties for violations of the labour law and its executive regulations has been announced. Fines will be cut by up to 94 per cent from the levels set in 2021, Gulf News reports.

The revision was issued by Ahmad Al Rajhi - the Minister of Human Resources and Social Development - fines will be adjusted based on the size and category of establishments.

The penalty for delayed wage and allowance payments to workers will now reportedly be set at SR300 for each worker, regardless of the size of the establishment.

Penalties for late payments previously varied from SR2,000 to SR5,000, depending on the size of the establishment, with higher fines for the larger.

In addition, there was a reduction in fines for employing women during the six weeks post-delivery, set at SR1,000 from the original SR10,000.

Fines for failing to provide medical insurance coverage to workers and their families were also modified.

For smaller establishments with 20 or fewer workers, the fine is SR3,00, increasing to SR500 and SR1,000 for medium and larger establishments, respectively.

The revised fines reportedly include a SR1,000 penalty, regardless of establishment size, for employing Saudi workers in professions reserved exclusively for female Saudi workers.

Before the amendment, these fines ranged from SR2,500 to SR10,000 based on the establishment’s size.

The amendments also drastically cut fines for falsely registering a Saudi worker without actual employment.

Penalties now range from SR2,000 to SR8,000, depending on the size of the establishment, significantly lower than the previous range of SR5,000 to SR20,000.

These amendments are reportedly part of the ministry’s ongoing efforts to review labour market regulations. They are intended to support the stability and growth of establishments, protect workers’ rights, and enhance the labour market’s attractiveness and flexibility.

The new fine structure takes into account the varying sizes of private sector establishments. They are categorised into three groups, based on the number of workers, to ensure compliance and support for businesses.

Source: Gulf News