Hefty fines for violations under Saudi's new labor law

Published October 18th, 2015 - 02:00 GMT

Employers and brokers in Saudi Arabia will be fined SR50,000 ($13,320) for every single visa violation under a new labour law amendment that came into force today (October 18), a report said.

Those selling work visas – popularly known as ‘free visas’ – will have to pay fines in multiples of SR50,000 depending on their involvement in the crime, reported Arab News, highlighting that illegal activity will lead to the blacklisting of Saudi citizens.

Employers obtaining visas based on incorrect data submitted to the Labour Ministry will also be fined SR25,000.

Ministry officials said that hiring non-Saudis for positions restricted to citizens is punishable with a fine of SR20,000 for each employee thus hired, the report explained.

Such employers will be fined SR25,000 in the event of non-compliance with the protection, safety and occupational health procedures inside and outside the premises of the establishments.

Any employer found to have employed children less than 15 years of age will be fined SR20,000, according to the report.

“The new rules are in the interest of employers and employees,” Labour Minister Mufrej Al-Haqabani was quoted as saying.

“They will provide stability to the labour market, increase efficiency and productivity and protect the rights of all parties,” he added.

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