Saudi Arabia sets new labour penalties up to SR250,000 in updated violations schedule

In a decisive step to strengthen labour governance across the Kingdom, Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has concluded a public opinion review and issued an updated schedule of violations and penalties.

The revised measures introduce tougher fines and clearer obligations that reinforce oversight of employment licensing, recruitment practices, workplace conduct, and the rights and protections of working women.

Licensing and worker mobility

The revised schedule imposes significant penalties on employers who violate licensing rules. Employing Saudi nationals without obtaining the required licence now carries a fixed fine of SR200,000.The regulations also restrict unauthorized worker transfers. Allowing a worker to leave their current employer and work for another party without proper approval is now punishable with fines ranging from SR10,000 to SR20,000.In addition, the ministry has set severe consequences for businesses engaging in recruitment, outsourcing, or other labour services without holding an official licence. These violations will result in penalties between SR200,000 and SR250,000.

A dedicated clause in the updated schedule addresses breaches of maternity leave rights. Non-compliance with maternity leave provisions is classified as a serious violation, and employers found in violation will face a fine of SR1,000 for every affected employee.The update also includes requirements related to childcare support in the workplace. Establishments that employ 50 or more female workers and have 10 or more children below six years of age among their staff must provide either a nursery or childcare facilities.

Failure to meet this condition results in a penalty of SR3,000.

Workplace misconduct oversight

The revised rules place obligations on employers to ensure proper handling of workplace misconduct. Institutions that do not form a committee to investigate misconduct cases, or that fail to conduct the investigation and issue disciplinary recommendations within five working days, will face fines between SR1,000 and SR3,000.

The ministry also introduced a fine related to environmental standards. Employers who fail to meet either internal or external workplace environmental requirements will incur a penalty of SR500.