Monday, December 11, 2023
Amendment of new penalties on Labor Law and regulation violations in Saudi Arabia
The Ministry of Human Resources and Social Development in Saudi Arabia has announced sweeping changes to the penalty structure associated with labor law violations. Join Saudi Expatriates channel on Instagram
Under the new changes, fines for some violations have been reduced by up to 60 per cent to 80 per cent based on establishment category. Categories are now determined by the total number of employees.
- The goal of these changes is to make the job market better by making fines more fair for businesses in the private sector of different sizes.
- By doing this, the Ministry is continuing its work to look over rules about the job market, protect workers' rights, keep businesses stable and help them grow, and make the job market more appealing and flexible. See Also : Procedure to change Date of Birth in iqama
According to Saudi labor categorization :
* Category A includes companies with more than 50 employees.
* Category B is designated for companies with 21 to 49 employees and
* Category C is for establishments with 20 employees or fewer.
Important changes:
1. Hiring employees outside of Saudization limits :
Penalties for not sticking to Saudization quotas or employing expatriates in reserved roles of Saudi citizens have been revised with the following.
* Category A with 8,000 riyals fine.
* Category B with 4,000 riyals fine and
* Category C with 2,000 riyals fine. Recommend : Why is VPN ban in Saudi Arabia
2. Safety standards penalties:
The fines for not following the rules for protection, safety, and workplace health have been changed. In particular,
* Category A establishments will face fine of 5,000 riyals, which is reduced from 10,000 riyals.
* Category B companies fine reduced from 5,000 to 2,500 riyals and
* Category C companies fine reduced from 2,500 to 1,500 riyals.
3. Work environment rules violations :
The penalties for not setting up acceptable safety rules have been changed.
* Category A fines moved from 5,000 to 1,000 riyals.
* Category B from 2,000 to 500 riyals fine and
* Category C from 1,000 to 300 riyals. Trending : Fine on workers who escape workplace during inspection
4. Weather-related employment fines :
Fines for hiring people in dangerous weather without taking the right safety precautions have been set at 1,000 riyals for everyone.
5. Medical benefits :
Businesses that don't offer health insurance to their workers and their families will have to pay smaller fines now.
* 1,000 riyals in Category A.
* 500 riyals in Category B and
* 300 riyals in Category C.
6. Child labor and Maternity:
The punishment for hiring children has been lowered a lot—it's now only 2,000 riyals for Category A. Employers who hire women less than six weeks after giving birth will be fined 1,000 riyals. Most Viewed : Maximum overtime allowed per person in Saudi Arabia
7. Role limitations for Saudi nationals:
* A 1,000-riyal fine has been set for Category A businesses that hire Saudis to do jobs that are only for them.
* Penalties are 5,000 and 2,500 riyals for Categories B and C, respectively.
8. Data integrity violations:
A fine of 3,000 riyals, down from 20,000 riyals, will be given for providing false information to the ministry.
9. Employment discrimination :
Fines for hiring people in ways that are unfair have been lowered.
* Category A at 3,000 riyals.
* Category B at 2,000 and Category C at 1,000 riyals fine. Follow Saudi Expatriates on Google News
10. Salary payment violations:
Normal fines of 300 riyals will be given to businesses that don't pay their workers in the official currency by the due date.
