Strict penalties for residency and labour law violations announced

At a glance

• The Ministry of Interior (MOI) announced strict penalties for violations of residency and labour regulations.
• Establishments employing expatriates illegally or allowing employees to work for others face fines of up to SAR100,000.
• Responsible managers may face up to one year in prison, and expatriate managers will be deported after serving the sentence.
• Non-compliant establishments may be banned from recruiting foreign workers for up to five years.
• Violations can be reported confidentially via 911 or 999, with no liability for the reporter.

On 30 December 2025, the MOI issued a warning to establishments regarding compliance with residency and labour regulations. The announcement outlines severe consequences for violations, including:

• Fines: Up to SAR100,000 for employing expatriates illegally, allowing employees to work independently or for other employers, or hiring workers not authorised to work for the establishment.
• Recruitment ban: Non-compliant establishments may be prohibited from recruiting foreign workers for up to five years.
• Imprisonment: Responsible managers may face up to one year in prison, and expatriate managers will be deported after serving their sentence.
   

Reporting Violations

Violations of residency, labour, and border security regulations can be reported by calling 911 or 999. Reports will be treated with full confidentiality, and the reporter will not be held liable.

Employers should review their compliance processes immediately to avoid severe financial, operational, and reputational risks.