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Saudi Arabia Unveils Significant Labour Law Reforms: Report

Saudi Arabia is set to implement new fines and penalties for employers in the country.

by THE GULF TALK
Saudi Arabia Unveils Significant Labour Law Reforms: Report

Saudi Arabia is set to implement a range of fines and penalties for employers across various employment categories. These fines come in response to a ministerial decision governing labour law violations and penalties in the country. The Ministry of Human Resources and Social Development (MHRSD) has amended the schedule of violations and penalties, targeting various labour-related offenses.

Some of the fines and penalties outlined in the report include:

1. A fine of SR5,000 ($1,333) for employing a non-Saudi worker without the appropriate work permit or without notifying the Ajeer program.

2. A fine ranging from SR1,500 ($400) to SR5,000 ($1,333) for not adhering to official health and safety regulations and not providing proper worker protection measures.

3. A fine of SR5,000 ($1,333) for employers in companies with over 50 employees who fail to offer designated childcare facilities or nurseries.

4. A fine ranging from SR1,000 ($267) to SR2,000 ($533) for hiring children under the age of 15.

5. A fine of SR1,000 ($267) for employing women within the first six weeks after childbirth.

6. A fine of SR1,000 ($267) for withholding an employee’s passport or residency permit.

7. A fine of SR300 ($80) for failing to pay salaries in the agreed-upon accounts on specified dates.

8. A fine of SR3,000 ($800) for companies that practice gender discrimination in the workplace or in recruitment advertisements.

These fines are intended to ensure compliance with labour laws and regulations in Saudi Arabia. The implementation of such penalties demonstrates the country’s commitment to safeguarding workers’ rights and improving labour conditions within the Kingdom.

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