SR10,000 fine for hiring a non-Saudi without due process

RIYADH: Saudi Arabia has introduced strict penalties for employers who retain worker passports or iqamas, or hire non‑Saudi employees without proper work permits, as part of a broader effort to protect workers’ rights and strengthen labour market regulations.

Employers in Saudi Arabia will now face a fine of SR10,000 for hiring a non‑Saudi worker without a valid work permit, according to an updated schedule of violations and penalties under the Kingdom’s Labor Law and executive regulations.

According to the Saudi Gazette, the updates were formalised by a ministerial decree issued by Eng. Ahmed Al‑Rajhi, Minister of Human Resources and Social Development.

The initiative aims to enhance the work environment, strengthen labour market stability, and foster sustainable growth, he said.

Under the amended schedule, employing children under 15 in violation of the law is treated as a serious offence, with fines up to SR2,000 for establishments with 50 or more workers.

Employers who retain a worker’s passport or residency permit (iqama) will face SR3,000 per worker, with the total penalty calculated based on the number of affected employees.

Failure to comply with the provisions governing the employment of minors, as stipulated in Chapter 10 of the Labor Law, will result in a fine of SR1,500 per minor. Employers who fail to document labour contracts will incur a penalty of SR1,000 per employee.

Employers who do not grant maternity leave as required will be fined SR1,000 per affected female employee.

Additionally, establishments employing 50 or more female workers must provide a childcare facility or nursery if there are 10 or more children under the age of six belonging to female employees. Non-compliance will result in a fine of SR3,000.

The penalty for failing to electronically document employee contracts is SR1,000 per employee.

According to the revised schedule, individuals who engage—directly or indirectly—in the employment of Saudis, the recruitment of foreign workers, or subcontracting such activities without proper authorization will face fines of SR200,000 for the first offense, SR220,000 for the second offense, and SR250,000 for the third offense.

The ministerial decision is intended to reinforce labor market stability and safeguard workers’ rights, while enhancing the attractiveness and flexibility of the work environment. These efforts are expected to contribute to improved efficiency and long-term sustainability of establishments.