Kingdom of Saudi Arabia (KSA) is diversifying its economic structure from oil based to other sectors. For this purpose, various policies and programs are being introduced to streamline its labour market. Recently, the Saudi Government has made changes in its labour laws and announced heavy fines on employers who would violate the law. The imposed fine need to be settled by respective employer within one month after issuance of penalty. The employers who do not settle the penalty or repeat the same offense would face double fine. The new penalties incorporated in the Labor Laws are as follows:-
Violation |
Penalty |
Fails to meet the requirements of Health & Occupational safety |
SR 15,000/- |
Violating employee holidays |
SR 10,000/- |
Allowing non-Saudi employee to work in an occupation other than the mentioned on its work permit |
SR 10,000/- |
Failure to open Firm’s file or update its data at Labor office |
SR 10,000/- |
Not providing or having organizational regulations |
SR 10,000/- |
Not complying with the organizational regulations |
SR 10,000/- |
Not uploading wage files of workers on Wage Management System (WMS) on monthly basis |
SR 10,000/- |
Failure to submit Wage Protection File to Labour Office on monthly basis |
SR 10,000/- |
Keeping Employee’s passport, Iqama (Residency Permit) or Medical Insurance card without consent |
SR 2,000/- |
It is a positive step which will ensure the safety and protection of workers from exploitation. The migrant workers will be more secure and remain less vulnerable which ultimately increases their productivity. The Pakistani Diaspora working/residing in KSA can approach the Local Labour Authorities in case of any transgression.