In a significant move to uphold the integrity of its labor market, Saudi Arabia is introducing a stringent penalty system set to take effect from the upcoming Sunday. Under this new system, workplaces employing illegal laborers will face a hefty fine of SR10,000 for each worker who manages to evade authorities during an inspection.

1. Serious Consequences: The Saudi Ministry of Municipal and Village Affairs has classified laborers escaping during inspections as a grave violation. As a consequence, a fine of SR10,000 will be imposed on the employer for each worker who manages to escape without any prior warning. Additionally, the workplace will be subject to a mandatory 14-day shutdown. For repeated offenses, the fine doubles, reinforcing the seriousness of the issue.

2. Closure Notice Violation: Removing the closure notice placed by authorities at the establishment's entrance or reopening the place without official approval is another grave violation. It carries a substantial fine of SR40,000. This measure aims to discourage non-compliance with official directives and ensure strict adherence to regulations.

3. Access Denial Offense: Denying inspectors access to rooms within the workplace is categorized as a grave breach, warranting a fine of SR10,000. This serves as a deterrent against obstructing inspection processes and encourages transparency.

4. Non-Grave Violations: In cases where establishments refrain from selling a product or providing a service without justification, they are initially issued a warning. The establishment then has a 14-day deadline to rectify the situation. Failure to do so results in a fine of SR3,000. This approach seeks to balance penalties with the nature of the violation.

5. Labor Market Regulation: Recent months have witnessed a robust nationwide crackdown on illegal foreign laborers by Saudi authorities, with thousands of violators apprehended. The kingdom has also implemented comprehensive labor reforms in recent years, aimed at regulating and improving its labor market.

6. Migrant Worker Reforms: Saudi Arabia introduced labor reforms in late 2020, bringing significant changes to the sponsorship system. These reforms grant greater job mobility and empower expatriate workers to transfer between employers upon the expiration of their work contracts without requiring the employer's consent.

Saudi Arabia's new penalty system underscores its commitment to maintaining a well-regulated and transparent labor market. These measures serve to deter illegal labor practices and encourage compliance with the country's labor laws, ultimately contributing to a fair and just work environment.