A sweeping change to the penalty structure associated with labour law violations has been announced by the Saudi Ministry of Human Resources and Social Development.

Fines for some violations have been reduced by 60 percent to 80 percent depending on the establishment category. Categories are now determined by the total number of employees.

In Saudi labor classifications, Category A includes establishments with more than 50 employees, Category B includes those with 21 to 49 employees, and Category C includes those with fewer than 20 employees.

Changes to note:

- Hiring outside of Saudiization quotas: The penalties for not adhering to Saudiization quotas or hiring non-Saudis in reserved roles have been revised as follows: Category A has been raised to 8,000 riyals; Category B has been raised to 4,000 riyals; and Category C has been raised to 2,000 riyals.

- Safety standards: Fines linked to non-compliance in protection, safety, and occupational health have been revised. Specifically, Category A establishments will face fines reduced from 10,000 to 5,000 riyals; Category B from 5,000 to 2,500 and Category C from 2,500 to 1,500.

- Work environment protocols: Penalties associated with not establishing appropriate safety guidelines have been restructured. Category A fines moved from 5,000 to 1,000 riyals; Category B from 2,000 to 500; and Category C from 1,000 to 300.

- Weather-related employment: Fines for employing workers under extreme weather conditions without necessary safety measures have been set at a flat 1,000 riyals across all categories.

- Medical benefits: Establishments failing to provide medical insurance to employees and their families will face reduced fines: 1,000 riyals in Category A; 500 in Category B and 300 in Category C.

- Child labour and maternity: There’s a significant penalty reduction for employing minors — down to 2,000 riyals for Category A. Employers hiring women within six weeks post-childbirth will be fined 1,000 riyals.

- Role limitations for Saudi nationals: A 1,000-riyal penalty has been set for Category A establishments employing Saudis in roles reserved exclusively for them. Penalties are 5,000 and 2,500 riyals for Categories B and C, respectively.

- Data integrity: Misrepresenting data to the ministry will result in a 3,000-riyal fine — a substantial reduction from 20,000 riyals.

- Employment discrimination: The fines for discriminatory hiring practices have been reduced: Category A is now 3,000 riyals, Category B is 2,000 riyals, and Category C is 1,000 riyals.

- Salary disbursement: Establishments that fail to pay salaries in the official currency within the stipulated period will be fined 300 riyals.