Saudi Arabia’s Minister of Human Resources and Social Development, Engineer Ahmed Al-Rajhi, has issued a decision amending the schedule of violations and penalties under the Labor Law and its executive regulations, the ministry announced Wednesday.
The ministry said the decision aims to support labor market stability, protect workers’ rights, and increase the attractiveness and flexibility of the work environment, while strengthening private sector competitiveness and regulatory compliance.
According to the ministry, the amendments align with revisions to the Labor Law issued under a royal decree dated February 8, 2025, followed by amendments to the executive regulations through a ministerial decision dated August 19, 2025.
The updated schedule reclassifies violations into different categories based on the nature of activities, providing clearer guidance for establishments and workers.
These categories include general violations applicable to all activities; violations related to mining and quarrying operations; violations of the Maritime Employment Contract Regulations; violations concerning operation and maintenance activities; violations of regulations governing recruitment and labor services (human resources and recruitment companies).
It also include violations related to recruitment offices; violations under the Domestic Workers Regulations; violations concerning advertisements for support labor services; violations involving the employment of Saudis, recruitment of workers, or outsourcing without a license; and violations related to agricultural workers, private shepherds, and similar professions.
The ministry stated that the amended violations schedule takes effect from the date of the ministerial decision’s issuance, and directed those seeking further details to its official website.
Key Penalties in the Amended Schedule
| # | Violation | Fine (SAR) | Notes |
|---|---|---|---|
| 1 | Hiring a non-Saudi worker without a valid work permit | 10,000 per worker | — |
| 2 | Failing to document labor contracts or update worker data in approved systems | Up to 10,000 | Per establishment |
| 3 | Employing workers without a written contract or registration in electronic systems | Up to 5,000 per worker | — |
| 4 | Failing to document labor contracts in writing | 1,000 per employee | — |
| 5 | Failing to electronically document employee contracts | 1,000 per employee | — |
| 6 | Retaining a worker’s passport or Iqama | 3,000 per worker | Total based on number of affected workers |
| 7 | Violations of working hours, weekly rest, or deploying workers in hazardous conditions without safety measures | Up to 20,000 | — |
| 8 | Employing children under 15 (violating Article 167) | Up to 2,000 | Applies to companies with 50+ workers |
| 9 | Violating provisions governing employment of minors (Chapter 10) | 1,500 per minor | — |
| 10 | Failing to grant maternity leave | 1,000 per affected female employee | — |
| 11 | Failing to provide childcare/nursery for female employees | 3,000 | Applies to establishments with 50+ female workers and 10+ children under age 6 |
| 12 | Conducting recruitment or labor services without a license | Up to 25,000 | — |
| 13 | Violating advertising regulations for domestic labor services / using misleading information | Up to 15,000 | — |
| 14 | Unauthorized employment of Saudis, recruitment of foreign workers, or subcontracting without authorization – 1st offense | 200,000 | — |
| 15 | Same violation – 2nd offense | 220,000 | — |
| 16 | Same violation – 3rd offense | 250,000 | — |
| 17 | Repeat violations (general) | Double fine or temporary suspension | Depending on severity |
Employers who hire a non-Saudi worker without a valid work permit face a fine of 10,000 Saudi riyals per worker. Similarly, fines of up to 10,000 riyals may be imposed on establishments that fail to document labor contracts or update worker data in accordance with approved systems.
Employers who fail to document labor contracts in writing will incur a penalty of 1,000 riyals per employee, while failure to electronically document employee contracts carries the same fine of 1,000 riyals per employee. A separate fine of up to 5,000 riyals per worker applies where employees are engaged without a written contract or without registration in approved electronic systems.
An employer who retains a worker’s passport or residency permit (Iqama) will be subject to a fine of 3,000 riyals per worker, with the total penalty calculated based on the number of affected employees.
Violations related to working hours, weekly rest requirements, or deploying workers in hazardous conditions without approved safety measures carry fines of up to 20,000 riyals.
Employing children under the age of 15 in violation of Article 167 of the Labor Law is deemed a serious offense, with companies employing 50 or more workers facing fines of up to 2,000 riyals for such violations. 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 1,500 riyals per minor.
Employers who do not grant maternity leave as required will be fined 1,000 riyals per affected female employee. Establishments employing 50 or more female workers must also provide a childcare facility or nursery if there are 10 or more children under the age of six belonging to female employees, with non-compliance resulting in a fine of 3,000 riyals.
Establishments conducting recruitment or labor service activities without the required license face fines of up to 25,000 riyals. Violations of advertising regulations for domestic labor services, including the use of misleading information, are subject to fines of up to 15,000 riyals.
Among the most significant penalties in 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 face fines of 200,000 riyals for the first offense, 220,000 riyals for the second offense, and 250,000 riyals for the third offense.
The amended schedule also stipulates stricter penalties for repeat violations, including doubled fines or temporary suspension of business activity depending on the severity of the offense.
The ministry noted that it had previously published the draft amendments on the Istitlaa public consultation platform to gather feedback from the public and relevant stakeholders, as part of its ongoing efforts to review labor market regulations and safeguard workers’ rights.