Saudi Arabia Introduces New Labour Penalties

Feb 26, 2026

50 min

Feb 26, 2026 05:31

Saudi Arabia revises labour penalties, sets SR10,000 fine for hiring foreign workers without permits

## New Penalties for Labour Violations

Saudi Arabia has revised its labour violation penalties, introducing a significant fine of SR10,000 for hiring foreign workers without valid permits. This change, announced by the Minister of Human Resources and Social Development, Ahmed Al Rajhi, aims to improve the labour market's stability.

## Additional Fines and Regulations

Employers who do not electronically document employment contracts will face a SR1,000 fine per worker. Hiring children under 15 is now a serious offence, with fines up to SR2,000 for larger establishments. Retaining a worker's passport or residency permit incurs a SR3,000 penalty per worker.

Companies failing to comply with juvenile employment regulations may be fined SR1,500 per violation. Not granting statutory maternity leave results in a SR1,000 fine per worker. Establishments with 50 or more women employees must provide childcare facilities or face a SR3,000 penalty.

## Unauthorized Recruitment Penalties

Unauthorized recruitment activities attract heavy fines. Individuals hiring without proper authorization face fines starting at SR200,000, increasing with repeated offences.

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