Saudi Arabia tightens labour rules, introduces fine for hiring foreign workers without permits

Saudi Arabia has revised its labour penalties and will fine employers SR10,000 for hiring a foreign worker without a valid work permit. According to a report by Gulf News, the Ministry of Human Resources and Social Development announced the changes to strengthen labour market regulation. The updated rules also impose fines for failing to document contracts electronically and for other violations related to employment practices.

Labour Minister Ahmed Al Rajhi issued the decision as part of efforts to improve labour market stability and growth, according to the ministry.

Stricter rules on workplace violations

Under the revised schedule, authorities will treat employing a child under 15 in violation of Article 167 of the Labour Law as a serious offence. Establishments with 50 workers or more may face fines of up to SR2,000 in such cases.


Employers who retain a worker’s passport or residency permit will face a fine of SR3,000 per worker. Companies that fail to follow rules governing the employment of juveniles under Chapter 10 of the Labour Law may be fined SR1,500 for each violation.

The ministry also set a SR1,000 fine per worker for employers who do not grant statutory maternity leave, as reported by Gulf News. Establishments that employ 50 or more women and have at least 10 children under six must provide childcare facilities or a nursery. Non-compliance will attract a SR3,000 penalty.

Employers who fail to electronically document employment contracts will face a fine of SR1,000 per worker.

Heavy penalties for unauthorised recruitment

The updated schedule also targets unauthorised recruitment. Individuals who engage in employing or recruiting Saudi nationals or foreign workers without proper authorisation will face a fine of SR200,000 for a first offence.

The fine rises to SR220,000 for a second violation and SR250,000 for a third offence.