Saudi Labor Fines for Employer Violations

New regulations in Saudi Arabia’s Ministry of Labor outline the various penalties for employers who abuse their workers.

A report by Saudi Gazette enumerates a list of violations with corresponding fines.

An employer who retains passport of employees will be fined SAR2,000, while those who do not furnish workers with a copy of employment contract is liable to a fine of SAR5,000.

A fine of up to SAR15,000 will be imposed to an employers who force workers to fulfill jobs not mentioned in the contract or asks workers to pay for expenses he is supposed to pay

Employers who delay payment of salaries, force workers to report for extra hours — including weekends and holdays — on the job without proper overtime payment will also be slapped with fines.

Employers who put workers at health or safety risk such as asking them to work in the middle of intense heat without measures will likewise be fined.

Further, companies who deprive at least 12% of its Saudi workers from getting training or refuse to grant recommendation letters to any employee will also be subject to fines.

Fines will be imposed on employers who deprive workers form getting recommendation letters or if a company does not provide training to at least 12% of its Saudi employees, according to the regulations.

Companies will be fined up to SR25,000 if they falsely claim the employment of Saudis or if they employ expatiates in jobs that are restricted to Saudis. Such companies will also be closed for five days.

Employing an expatriate with no proper license is subject to a fine of SAR45,000 and those who sell visas to foreign workers will be fined SAR50,000.

For jobs that are marked for women, employers who hire men will be fined SAR10,000 for each male employee and operations will be suspended for one day. Assigning women in mixed areas and forcing them to do work during banned hours entail a fine between SAR5,000 and SAR10,000.

Those who violate safety and health standards, including employment of minors will pay a fine of up to SAR25,000. Employers who start recruitment prior to securing license from the ministry will be fined between SAR10,000 and SAR20,000.

Businesses owners will be fined SR25,000 if they provide false information to the Ministry of Labor and SR10,000 if they create problems in the work of the ministry’s investigation officers.

On each violation, fines will be doubled for repeat offenders and fines have to be fined within a month of issuance. Otherwise, it will be treated as repeat offense.

Companies can appeal within 60 days after the violation has been registered.

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