Increased fine set for unlicensed foreign hiring

At a glance

• Saudi Arabia has introduced an updated schedule of labour‑law penalties, including a fine of SAR10,000 for employing a foreign worker without a valid permit.
• The revised penalties were issued by the Ministry of Human Resources and Social Development to support labour‑market stability and regulatory compliance.
• Enforcement has been tightened across multiple areas, including child labour, document retention and contract documentation.
• Employers face fines for breaches such as retaining passports, failing to document employment contracts electronically and non‑compliance with childcare facility requirements.
• Severe sanctions apply to unlicensed recruitment activities, with fines increasing for repeat offences.

Saudi Arabia has issued an updated schedule of labour‑law penalties as part of broader efforts to strengthen compliance and enhance labour‑market stability. The revised penalties were announced by the Ministry of Human Resources and Social Development and apply across a range of employment‑related obligations.

Under the updated framework, employers who engage non‑Saudi workers without valid authorisation will face a fine of SAR10,000 per violation. The enforcement regime has also been tightened in relation to child labour, with employing a child under the age of 15 treated as a serious offence. Establishments with 50 or more employees may face fines of up to SAR2,000 for such violations.

Additional penalties apply for retaining an employee’s passport or residency permit, with fines of SAR3,000 per worker. Breaches of juvenile employment provisions under Chapter 10 of Cabinet Decision No. 219 of 1426 approving the Labour Law may result in fines of SAR1,500. Employers are also required to provide childcare facilities where the workplace employs 50 or more women and at least ten children under the age of six, with non‑compliance attracting a SAR3,000 fine.

The updated penalties further include a SAR1,000 fine per worker for failure to electronically document employment contracts. Significant sanctions apply to unlicensed recruitment activities, with fines starting at SAR200,000 for a first offence and increasing to SAR220,000 and SAR250,000 for second and third offences respectively.