[Saudi Arabia] SR50,000 fine and jail time for employers engaging self-employed expats

Following confusion around a recent announcement, The General Directorate of Passports (Jawazat) has clarified that any Saudi employer allowing expatriate workers to engage in jobs for their own personal benefit or in return for a sum of money will be punished with a maximum jail term of three months and fines amounting to SR50,000, Saudi Gazette reports.

According to Jawazat sources, an employer, who commits this violation for the first time, will receive a one-month jail term and SR5,000 in fine. If the offence is repeated, the penalties include imprisonment for two months and a fine of SR20,000. For a third violation, an employer will face three months in prison and fines amounting to SR50,000.

In all cases, the fine will be multiplied by the number of workers the employer allowed to engage in jobs for their own personal benefit in violation of the regulations of the Labor Law, the Jawazat sources said.

In addition, the Jawazat reportedly said that there will be a ban on the employer recruiting workers for a period of no less than one year in the event following the engagement of a  self-employed worker. The ban will be raised to two years and three years in the event of repeating the violation for the second time and third time respectively.

The Jawazat warned that a maximum jail term of six months and fines amounting to R50,000 will be imposed on expats who engage in jobs for their own personal benefit. The self-employed expatriate will be deported following the completion of the jail term and payment of fines.

The Jawazat source said that an expatriate working for anyone other than their original employer or working for their own personal benefit would be deported to their home country.

If an expatriate employs another expatriate for their benefit, the expatriate employer will be punished with a fine of SR5,000 or imprisonment for a month or both in addition to the revocation of their residency permit (iqama) and deportation from the Kingdom.

In such cases, if the employer is a citizen, they will be punished for a first time violation with a fine of SR5,000, a fine of SR10,000 or imprisonment for a month or by both for a second violation and by a fine of SR20,000 or imprisonment for three months or of both for the third violation, the Jawazat sources added.

Following confusion around a recent announcement, The General Directorate of Passports (Jawazat) has clarified that any Saudi employer allowing expatriate workers to engage in jobs for their own personal benefit or in return for a sum of money will be punished with a maximum jail term of three months and fines amounting to SR50,000, Saudi Gazette reports.

According to Jawazat sources, an employer, who commits this violation for the first time, will receive a one-month jail term and SR5,000 in fine. If the offence is repeated, the penalties include imprisonment for two months and a fine of SR20,000. For a third violation, an employer will face three months in prison and fines amounting to SR50,000.

In all cases, the fine will be multiplied by the number of workers the employer allowed to engage in jobs for their own personal benefit in violation of the regulations of the Labor Law, the Jawazat sources said.

In addition, the Jawazat reportedly said that there will be a ban on the employer recruiting workers for a period of no less than one year in the event following the engagement of a  self-employed worker. The ban will be raised to two years and three years in the event of repeating the violation for the second time and third time respectively.

The Jawazat warned that a maximum jail term of six months and fines amounting to R50,000 will be imposed on expats who engage in jobs for their own personal benefit. The self-employed expatriate will be deported following the completion of the jail term and payment of fines.

The Jawazat source said that an expatriate working for anyone other than their original employer or working for their own personal benefit would be deported to their home country.

If an expatriate employs another expatriate for their benefit, the expatriate employer will be punished with a fine of SR5,000 or imprisonment for a month or both in addition to the revocation of their residency permit (iqama) and deportation from the Kingdom.

In such cases, if the employer is a citizen, they will be punished for a first time violation with a fine of SR5,000, a fine of SR10,000 or imprisonment for a month or by both for a second violation and by a fine of SR20,000 or imprisonment for three months or of both for the third violation, the Jawazat sources added.