Saudi Arabia announces SR 10,000 fine for illegal hiring of foreign workers

Riyadh: Saudi Arabia has amended its schedule of labour violations and penalties, introducing stricter fines, including a Saudi Riyals (SR) 10,000 penalty for employers who hire non-Saudi workers without a valid work permit, according to Arabic daily Okaz.

The changes were formalised through a ministerial decision issued by Minister of Human Resources and Social Development (MoHRSD) Eng Ahmed Al-Rajhi as part of efforts to enhance labour market stability, protect workers’ rights and support sustainable economic growth.

The revised schedule outlines several key penalties:

• SR 10,000 fine for employing a non-Saudi worker without a valid work permit.
• Up to SR 2,000 fine for establishments with 50 or more workers that employ children under 15 in violation of Article 167 of the Labour Law.
• SR 3,000 fine per worker for retaining an employee’s passport or residency permit (iqama).
• SR 1,500 fine per minor for violating regulations governing the employment of juveniles under Chapter 10 of the Labour Law.
• SR 1,000 fine per employee for failing to document labour contracts, including electronic documentation.
• SR 1,000 fine per affected worker for failing to grant statutory maternity leave.
• SR 3,000 fine for establishments employing 50 or more women that do not provide childcare facilities when required.

The updated framework also imposes heavy penalties for unauthorised recruitment activities. Individuals engaging directly or indirectly in the employment of Saudis, recruitment of foreign workers or subcontracting without proper authorisation will face:

• SR 200,000 fine for a first offence.
• SR 220,000 fine for a second offence.
• SR 250,000 fine for repeated violation.

According to Okaz, the amendments align with recent updates to the Labour Law issued under a royal decree and subsequent revisions to executive regulations. The ministry said the move is intended to increase the attractiveness and flexibility of the work environment while improving efficiency and long-term sustainability across businesses.

The changes also include reclassifying nine categories of violations to provide greater clarity. These cover general labour violations, mining and quarrying, maritime employment, operation and maintenance activities, recruitment and human resources services, recruitment offices, domestic workers, labour service advertising, unauthorised recruitment and outsourcing, as well as agricultural workers and similar professions.

The ministry urged employers and workers to review the amendments through its official platforms, noting that the new penalties will take effect from the date of the ministerial decision.