The Ministry of Human Resources and Social Development in Saudi Arabia recently unveiled a comprehensive overhaul of penalties linked to labor law violations, aiming to create a more equitable landscape for businesses of varying sizes within the private sector.
In accordance with the Saudi labor categorization system (Category A for companies with over 50 employees, Category B for 21 to 49 employees, and Category C for establishments with 20 employees or fewer), here are some noteworthy changes:
1. Hiring Practices Revisions:
. Category A: Fine reduced to 8,000 riyals.
. Category B: Fine decreased to 4,000 riyals.
. Category C: Fine now at 2,000 riyals.
2. Safety Standards Penalties:
. Category A: Fine reduced to 5,000 riyals.
. Category B: Fine lowered to 2,500 riyals.
. Category C: Fine reduced to 1,500 riyals.
3. Work Environment Rules:
. Category A: Fine now at 1,000 riyals.
. Category B: Fine decreased to 500 riyals.
. Category C: Fine now at 300 riyals.
4. Weather-Related Employment:
. Uniform fine of 1,000 riyals for all categories.
5. Medical Benefits:
. Category A: Fine set at 1,000 riyals.
. Category B: Fine reduced to 500 riyals.
. Category C: Fine now at 300 riyals.
6. Child Labor and Maternity:
. Reduced fine of 2,000 riyals for Category A for hiring children.
. Fine of 1,000 riyals for hiring women less than six weeks postpartum.
7. Role Limitations for Saudi Nationals:
. Category A: 1,000 riyals fine.
. Category B: Fine set at 5,000 riyals.
. Category C: Fine reduced to 2,500 riyals.
8. Data Integrity Violations:
. Fine reduced to 3,000 riyals for providing false information to the ministry.
9. Employment Discrimination:
. Category A: Fine set at 3,000 riyals.
. Category B: Fine at 2,000 riyals.
. Category C: Fine reduced to 1,000 riyals.
10. Salary Payment Violations:
. Standard fine of 300 riyals for businesses failing to pay employees in the official currency by the due date.
