Saudi Arabia slashes labor law violation fines by up to 94%

Saudi Arabia slashes labor law violation fines by up to 94%

RIYADH, Dec 13: Saudi Arabia has introduced substantial reductions in penalties for violations of labor laws and executive regulations, slashing fines by as much as 94% compared to 2021 levels. The revisions, issued by Minister of Human Resources and Social Development Ahmad Al Rajhi, tailor fines based on the size and category of establishments. Notably, …

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RIYADH, Dec 13: Saudi Arabia has introduced substantial reductions in penalties for violations of labor laws and executive regulations, slashing fines by as much as 94% compared to 2021 levels. The revisions, issued by Minister of Human Resources and Social Development Ahmad Al Rajhi, tailor fines based on the size and category of establishments. Notably, the penalty for delayed wage and allowance payments to workers is now a flat SR300 per worker, regardless of the establishment’s size. Previously, fines ranged from SR2,000 to SR5,000, with larger establishments facing higher penalties.

The amendments also include a reduction in fines for employing women during the six weeks post-delivery, now set at SR1,000, down from SR10,000. Additionally, fines for failing to provide medical insurance coverage have been adjusted based