13/12/2023
Arab Times
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RIYADH, Dec 13: Saudi Arabia has introduced substantial reductions in penalties for violations of labor laws and executive regulations, slashing fines by as much as 94% compared to 2021 levels. The revisions, issued by Minister of Human Resources and Social Development Ahmad Al Rajhi, tailor fines based on the size and category of establishments. Notably, the penalty for delayed wage and allowance payments to workers is now a flat SR300 per worker, regardless of the establishment's size. Previously, fines ranged from SR2,000 to SR5,000, with larger establishments facing higher penalties.
The amendments also include a reduction in fines for employing women during the six weeks post-delivery, now set at SR1,000, down from SR10,000. Additionally, fines for failing to provide medical insurance coverage have been adjusted based on establishment size. For smaller establishments (20 or fewer workers), the fine is SR300, increasing to SR500 and SR1,000 for medium and larger establishments, respectively. The revised fines also impose a standard SR1,000 penalty, regardless of establishment size, for employing Saudi workers in professions exclusively reserved for Saudi females. Before the amendment, these fines ranged from SR2,500 to SR10,000 based on establishment size.
Furthermore, fines for falsely registering a Saudi worker without actual employment have seen significant reductions. Penalties now range from SR2,000 to SR8,000, depending on the establishment's size, compared to the previous range of SR5,000 to SR20,000. These amendments, part of the ministry's ongoing efforts to review labor market regulations, aim to support the stability and growth of establishments, safeguard workers' rights, and enhance the labor market's attractiveness and flexibility. The new fine structure is designed to accommodate the varying sizes of private sector establishments, categorized into three groups based on the number of workers, ensuring compliance and providing support for businesses.
