Saudi Arabia consults on changes to labour law penalties

The proposed revisions, published for consultation by the Ministry of Human Resources and Social Development further support the updated Labour Law aimed at enhancing both workers’ and employers’ rights and reflect a broader effort to modernise the labour market in line with KSA’s ambitions as part of Vision 2030.

The proposals include changes to penalties issued for both serious and non-serious labour law violations. The fines vary depending on the size of the organisation and are sub-divided into three categories: those with 20 workers or less; those with 21-49 workers; and those with 50 or more workers.

The largest fines will be issued for the recruitment, outsourcing or provision of labour services without a licence or for employing Saudi citizens without a licence. These will range from SR200,000-SR250,000 (US$66,666- $53,333).

Employers will be fined between SR10,000 and SR20,000 if they allow employees to work for a third party or independently. They will also receive a SR10,000 fine for each non-Saudi worker they hire without a work permit. A fine ranging from SR2,000-SR8,000 will be issued if they hire non-Saudi workers in professions or activities that are restricted to Saudi citizens or where they have registered a Saudi worker without a valid employment relationship.

Employers will also face up to a SR5,000 fine if they fail to comply with occupational safety and health regulations and a SR1,000 fine for employing a worker under the sun or in adverse weather conditions without taking necessary precautions.

Significant fines will also be issued for a number of non-serious violations. These include a fine of up to SR3,000 if the employer fails grant the worker approved weekly or daily rest periods or increases work hours without paying overtime. Employers will also face fines of SR1,000 if they employ Saudi men in activities that are restricted to Saudi women.

The proposed changes are in line with the 2025 KSA labour law amendments, which seek to foster a balanced and transparent work environment by mandating digital employment contracts and clear grievance procedures. This is alongside the emphasis on workforce nationalisation through training and development obligations for Saudi nationals and strengthening oversight mechanisms. The proposal with updated penalties will reinforce a framework of tiered fines and will promote compliance with fair practices by acting as a deterrent

The full table of violations and penalties has been published on the Istitlaa public survey platform. The public consultation on the proposals will close on 7 June.