Saudi Arabia Introduces New Penalties for Expatriate Work Permit Violations

The Kingdom of Saudi Arabia (KSA) has implemented a series of stringent measures aimed at regulating expatriate employment in the country.

Expatriates found working without the necessary work permit or failing to notify the Ajeer Program, a government initiative overseeing foreign labour, will now face a substantial penalty of Saudi Riyal 5,000 (equivalent to Rs 110,835).

This announcement comes from the Saudi Ministry of Human Resources and Social Development (MHRSD) as part of the updated schedule of violations and penalties in labour law.

Fines Under the New Labor Law

According to a recent report by the Saudi Gazette, the new fines established under the labour law encompass a range of violations:

1. Hiring Non-Saudis without Permit: Employers who hire non-Saudi workers without the requisite work permit or fail to notify the Ajeer Program will be subject to a fine of Saudi Riyal 5,000 (Rs 110,835).

2. Neglecting Health and Safety: Companies failing to adhere to official health and safety regulations or neglecting appropriate measures to protect workers will face fines ranging from Saudi Riyal 1,500 (Rs 33,239) to Saudi Riyal 5,000.

3. Childcare Obligations: Employers of companies with over 50 workers are now obligated to provide childcare or daycare services. Failure to comply will result in a fine of Saudi Riyal 5,000.

Also Read: Saudi Arabia Opens E-Visa Access for Indian Passport Holders with UK, US, and Schengen Visas

4. Employment of Minors: A fine ranging from Saudi Riyal 1,000 (Rs 22,159) to Saudi Riyal 2,000 (Rs 44,333) will be imposed for hiring children under the age of 15.

5. Postpartum Employment of Women: Employing women within the first six weeks after childbirth will result in a fine of Saudi Riyal 1,000.

6. Passport and Residence Permit Retention: Employers withholding employees’ passports or residence permits will be subject to a fine of Saudi Riyal 1,000.

7. Salary Non-Payment: Failure to pay salaries into agreed-upon accounts on specified dates will lead to a fine of Saudi Riyal 300 (Rs 6,649).

8. Gender Discrimination: Companies that exhibit gender-based discrimination, whether in the workplace or recruitment advertisements, will face a fine of Saudi Riyal 3,000 (Rs 66,501).

Also Read: Saudi Arabia Expands e-Visa to Eight More Countries

Compliance and Consequences

The Saudi labour ministry has stipulated that violators must settle the imposed fine within 60 days of receiving the administrative decision notification. Failure to comply within this timeframe will result in the termination of services provided by the ministry, as outlined in the executive law.

As the Kingdom of Saudi Arabia seeks to enhance its labour regulations and ensure the well-being of expatriate workers, these new penalties underscore the nation’s commitment to upholding fair and just employment practices.