Saudi Arabia: Amended Labor Fines Announced

Saudi Arabia has updated its schedule of labor violations and penalties, including significantly increasing certain fines. Certain labor violation fines have been changed as follows:

• • The fine for engaging a worker in a profession different from the one mentioned in their work permit or employment contract is now SAR 3,000-10,000 (depending on company size) – up from SAR 300-1,000.
  • The fine for employing a foreign national in a profession or activity limited to Saudi nationals is now SAR 3,000-10,000 (depending on company size) – up from SAR 2,000-8,000.
  • The fine for employing a foreign national without obtaining a professional work authorization in activities limited to Saudi nationals is now SAR 10,000 (regardless of the size of the company) – up from SAR 1,000-5,000. This brings this penalty in line with general penalty for employing a foreign national without obtaining a professional work authorization – which remains SAR 10,000 (regardless of the size of the company).
  • The fine for failing to pay an employee’s wages in Saudi Riyals into an approved bank account by the due date, or withholding the payment or part of it without approval, is now SAR 300 (regardless of the size of the company) – down from SAR 500-2,000. 

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.