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.

Ministry of Labor (MOL) and Social development announced that Fines up to SR25,000 will be implied on Employers for violating labor rights.

Below are the Fine for Employees violating Saudi Labour Rights:

• 2000 SAR: For Keeping workers passports without their approval
• 5000 SAR: For not complying with the conditions mentioned in the training contract
• 5000 SAR: For not adhering to offering of work contracts in Arabic language
• 5000 SAR: For employing a worker with no contract or copy of the contract
• 5000 SAR: For not keeping workers records including names, salaries, fines, attendance and medical tests
• 5000 SAR: For Full or partial withholding of a Worker’s Salary
• 10000 SAR: Plus, One Day closure if the firm employees male expat workers on jobs restricted to Saudis
• 20000 SAR: For employing expat workers on jobs restricted to Saudis
• 25000 SAR: Plus, 5 Day closure if the firm registers Saudis with GOSI without their approval

MOL announced 9 different violation scenarios along with their fines. All these information was posted on twitter account along with fines for employers.

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.