The Ministry of Human Resources and Social Development Decision No. 92768 dated 5/5/1443H, adopting the new table of fines and penalties for breaching the labour law and any other employment regulations, was issued on 17 December 2021. This includes, specifically, penalties for non-compliance with the Saudi employment regulations by employers.
The new law provides a revised list of penalties for violations of various employment regulations, including sanctions for non-compliance with Saudisation requirements, work authorisation obligations and payment of wages. It also provides a separate list of sanctions applicable to recruitment companies.
The level of penalties depends on the employer’s headcount and, in some instances, the penalties are multiplied by the number of workers affected by the employer’s non-compliance. Companies are grouped into three categories:
|A||51 or more workers|
|B||11 to 50 workers|
|C||10 or fewer workers|
Employers must settle (or appeal) all penalties within 60 days of being served by the MHRSD, and failure to do so will result in the suspension of all services provided by MHRSD.
Key Action Points for Human Resources and In-house Counsel
Employers should familiarise themselves with the updated table and ensure compliance.