With the implementation of a new penalty system, companies employing undocumented workers now face fines of 10,000 riyals for each worker escaping during a workplace inspection.

The Saudi Ministry of Municipal and Rural Affairs (MOMRA) emphasizes that workers evading inspections are in serious violation of the law, resulting in an immediate fine of 10,000 riyals per worker without prior warning. The workplace will also be shuttered for 14 days, with the fine doubling for repeated violations.

Removing closure notices without official permission is a grave offense, warranting a fine of 40,000 riyals. Similarly, preventing inspectors' access to workplace areas incurs a 10,000 riyals penalty.

Contrarily, not selling a product or offering a service without a valid reason is considered a less severe offense, with an initial warning issued. The business violating rules has 14 days to rectify the issue; otherwise, a 3,000 riyals fine will be imposed.

In recent times, Saudi Arabia has intensified its crackdown on illegal expatriates, leading to the arrest of thousands. These efforts are part of the country's strategy to regulate its labor market effectively.

In late 2020, Saudi Arabia introduced labor reforms that significantly impacted the rights of foreign workers. These changes, effective since March 2021, facilitated job transitions and granted more control over exit and re-entry visas for expatriate workers without requiring their employer's consent. This newfound employment flexibility allows foreign workers to switch jobs at the end of their contracts without employer constraints.