Posted by : Aahil Shaik Friday, July 9, 2021

Violating Employers to face a fine of 50,000 riyals, including closure of Companies


The Ministry of Human Resources and Social Development in Saudi Arabia announced its intention to penalize companies and employers who violates Saudi Labor Law and its executive regulations and ministerial decisions.







Fifty Thousand Riyals Penalty :

Companies with less than or more than 10 employees will be penalized with a fine of 50,000 riyals in case of submitting incorrect information to the Human Resources Ministry, with the aim of gaining undue benefits and services.

Twenty Thousand Riyals Penalty :

- A company with less than 10 or more than 10 workers will be penalized with a fine of 20,000 riyals in case of committing any of the below violations.


* Employing an expat worker without getting work permit or notifying Ajeer portal

* Employing a worker without getting a professional work permit in professions that are restricted to Saudi citizens or without renewing it as per the requirements of the ministry.





Twenty Five Thousand Riyals Penalty

- A fine of 25,000 riyals will be penalized on companies with more than 10 workers in case of not arranging a childcare facility. The same will be penalized for companies with 50 female workers or more in case of failure to set up a nursery, this is applicable if the number of children of female workers under the age of 6 years are 10 or more.

Five to Ten Thousand Riyals Penalty :

- A company with less than 10 workers will be penalized with a fine of 5,000 riyals and a company with more than 10 workers will be penalized with 10,000 riylas in case that the employer does not comply with the rules of occupational protection, safety and health approved by the ministry, including taking necessary precautions to protect employees in all their activities. Recommend : Saudi Arabia tops in largest companies in Middle East

- The same rule will be applied if they failed to comply with the provisions and instructions approved by the ministry for employment of workers in mines and quarries, or if there is not enough number of security guards or an appropriate electronic security system for all companies, including workplaces and warehouses.





- The draft ministerial decision also mentioned other violations and its penalties, which ranged in between 1000 to 3000 riyals and the fines to be imposed on the companies as per the number of workers.

- The draft ministerial decision specified a fine of 10,000 riyals on a company that engages in employing Saudis without a license, or that engages in hiring laborers or providing labor services without a license, the penalty also includes closing the company on permanent basis. See Also : Modifying the salary of worker requires written approval from him - Ministry of HR

- Fines will be in between 5,000 and 30,000 Riyals for a number of violations, and that included practicing an unlicensed activity or service, or continues engage in any of the license activities after slapping the penalty of closure, suspension or cancellation of the license.





- The draft ministerial decision also mention a fine of 10,000 riyals for the offices and companies that engage in hiring Saudi citizens without a license from the Ministry, or brokering recruitment of workers or providing labor services without a license.

- The draft decision highlighted that the violator has to clear the violation within 10 working days from the date of imposing the penalty on him, and in case that it is not removed within the said period, the ministry has the right to double the penalty. However, the violator can submit his objection against the administrative decision to the competent authority at the ministry within 60 days from the date of notification of the decision or pay the fine imposed or the final ruling of a court. Follow Saudi Expatriates on Telegram Channel

- In case of non-implementation of this during this period, the ministry's services will be suspended for the violator until the value of the fine is paid, the grievance before the competent administrative court does not stop the implementation of any decision unless by a decision of that court to stay its implementation, reported Saudi Gazette.





Violated Employers to face a fine of 50,000 riyals, including closure of Companies - Saudi-Expatriates.com


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