Saudi Arabia updates Labour Law with new penalties

22 December 2025 1 min read

By Zahir Qayum and Balall Maqbool

At a glance

  • Saudi Arabia has announced significant fines for employers violating workplace regulations, following a public consultation.
  • Unlicensed recruitment of nationals now carries penalties of up to SAR200,000, with unauthorised recruitment services fined up to SAR250,000.
  • Employers allowing workers to leave and work elsewhere face fines between SAR10,000 and SAR20,000.
  • New measures include SAR1,000 fines for maternity leave non-compliance and SAR3,000 penalties for failing to provide childcare facilities.
  • Additional fines apply for inadequate misconduct investigations and environmental compliance breaches.

The Saudi labour ministry has unveiled substantial penalties for employers who violate workplace regulations, including a maximum fine of SAR200,000 for unlicensed recruitment of nationals.

In a comprehensive update to the labour law penalties, authorities have established new fines following a public consultation. Employers who permit their workers to leave and work for other parties now face penalties between SAR10,000 and SAR20,000.

The revised regulations introduce strict measures regarding maternity rights, with employers facing a SAR1,000 fine for each instance of non-compliance with maternity leave provisions. Companies employing 50 or more women with ten or more children under six years old must provide childcare facilities or face a SAR3,000 penalty.

Additionally, the ministry has implemented fines ranging from SAR1,000 to SAR3,000 for organisations that fail to properly investigate workplace misconduct within five working days or neglect to establish investigation committees.

Environmental compliance has also been addressed, with a SAR500 fine for breaching internal or external environmental requirements. The most severe penalties are reserved for unauthorised recruitment services, with fines ranging from SAR200,000 to SAR250,000 for operating without proper licensing.