List of Heavy Fines & Penalties for Employers in Saudi Arabia

This order was issued by the MOL Saudi Arabia and along with that anyone who appoints Saudi National workers without ministry’s permission will be closed down and will have to pay a fine of SR 10,000

Even the same fine (SR 10,000) will be levied for any agent who is providing such services of bringing Expatriates or undertaking labor supply without ministry’s valid license or a person allowing another person to use his license.

SR 5,000 will be levied on an employer it he fails to maintian information about his workers, such as Name, Wages, Age, Attendance, etc

SR 5,000 for Employers who gives a incorrect Service certificaed which may harm workers reputation or Experience in the labor market.

SR 10,000 fine for Employer who forces his employees to bear his expenses to be met

SR 1,000 Fine for Employer if a woman employee is not following Hijab dress Code at workplace.

WPS (Wage Protection System) gives protection to employees for any delay in Salaries. If any employee lodges a complaint againts an employer for delay in Salary in Labor Dispute court the Employer has to pay the fine.

Since 2015, Ministry of Labor takes action against the companies and employers who are violating Labor laws and will also stop profession changes anf transfers for private companies ue to violations of Laws.

GOSI a General Organization for Social Insurance also puts penalty of 10000 SAR if they didn’t able to enroll employee in the system, many employers also try to avoid enrolling the employees to run away from any penalties in case of delayed salaries.

Every Individual Company in the Kingdom who is cutting they employee weekend leave and counts them as Annual leave will cause a violation of Saudi Arabia Labor Laws and that company will have to pay fine of 1,00,000 SAR (Saudi Riyals).

As per the Saudi Labor Law, any employees weekends are not considered as a part of annual leave.

Weekend leaves are spearate from Annual leaves and Employers shouldn’t count weekend leaves as a part of Annual leaves.

As most of the Expatriates living in Saudi Arabia aren’t aware of all the Saudi Labor Laws, many companies have been counting their weekends in annual leaves.

But, now if a company is violating Saudi Labor law and couting Weekend leaves as Annual leave will have to pay a huge fine of 1,00,000 Saudi Riyals (SAR).

Hoping that these Fines and Laws are towards helping all the foreigners and Expatriates living in Saudi Arabia and getting their weekend leaves separately apart from the annual leave.

If any such fine is imposed to a company and if the payment is delayed, then they will have to pay double fine and repeating the same violation can also Shut down the company.

Though Saudi Arabia being one of a rich country, most of the Expatriates and workers living there face issues like these where their Kafeel / Sponsor / Employer will keep their passports and harass them.

Fines for Sponsors or Employers from 2017 are mentioned below:

– 2000 SAR for any Document or Passport held by employer
– If workers don’t get their Employment agreement copy, fine of 5000 SAR needs to be paid by Employer
– Fine of 15000 SAR for forcing employees to work on things other than mentioned in their Work Agreement
– Fine of 25000 SAR for Safety violations and health Hazards
– Fine of 50000 SAR for selling VISAs to foreigners and Expatriates
– Fine of 25000 SAR for forging identity of their employee as a Saudi

This law will help expatriates and workers and give them a bit of freedom and relaxation.

“The employer then has a month to rectify his status. The fine will double if the employer did not rectify the status in time,” said Abalkhail.