Riyadh: Saudi Arabia has strengthened enforcement against labour law violations by introducing new financial penalties. Employers hiring foreign workers without a valid work permit will now face a fine of around ₹2.2 lakh (approximately SR10,000). The move aims to enhance transparency, market stability, and a rule-based employment system.
The Ministry of Human Resources and Social Development of Saudi Arabia stated that the policy is designed to reduce labour law violations and regulate the employment framework more effectively. Labour Minister Ahmed Al Rajhi issued the new directive, saying the revised structure will support sustainable labour market development.
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Stricter Penalties for Workplace Violations
Under the updated labour law enforcement schedule, several other violations will attract heavy fines. Employing children under the age of 15 is treated as a serious offence. Establishments with 50 or more workers may face fines of up to ₹44,000 (SR2,000) for child labour violations.
Employers retaining workers’ passports or residency documents will be fined ₹66,000 (SR3,000) per worker, a rule introduced to protect labour rights. Violations related to juvenile employment regulations may attract a penalty of ₹33,000 (SR1,500) per case.
Employers failing to provide statutory maternity leave will face a fine of ₹22,000 (SR1,000) per employee. If establishments employing 50 or more women and at least 10 children under six years of age fail to provide childcare or nursery facilities, an additional penalty of about ₹66,000 (SR3,000) may be imposed. Failure to electronically register employment contracts will also lead to a ₹22,000 (SR1,000) fine per worker.
Action Against Unauthorized Recruitment Networks
The new regulations also target illegal recruitment activities. Individuals or entities recruiting Saudi nationals or foreign workers without official authorisation will face a fine of approximately ₹44 lakh (SR200,000) for the first offence.
The penalty increases to about ₹48.4 lakh (SR220,000) for a second violation and may reach around ₹55 lakh (SR250,000) for a third offence.
Objective — Labour Market Stability
Government officials said the stricter enforcement policy aims to protect workers’ rights, curb illegal employment networks, and support economic growth.
Experts believe the new framework may impact small and medium enterprises (SMEs) that depend on foreign labour. Businesses have been advised to review compliance records and ensure all employee documents are digitally registered.
The ministry has warned employers that strict action will be taken against those violating the rules. The new system is expected to be enforced nationwide in the coming months.
