New Regulations & Fines by Ministry of Labor

Saudi Ministry of Labor (MoL) will impose various fines on employers / companies who are unable to follow new regulations. Below is the summary of these fines under new regulations, please note we have compiled this for information sharing purpose only, you may visit actual news site for further clarification.

SR 2,000 fine on employer on keeping passport of employee with him.

SR 3,000 fine under wage protection program on companies who are unable to pay salaries on-time to their workers. This amount of fine will be for each unpaid worker. Furthermore workers will be allowed to transfer their services to another company without the need of approval from current employer. Wage protection program will be compulsory for companies who are having at least 11 workers and a maximum of 100 workers on Feb 2016.

SR 5,000 fine on employer if he did not provide a copy of contract to his workers.

SR 10,000 fine on employer for offering such a job to male worker which is restricted for female worker.

SR 15,000 fine on employer who forces workers to perform a job which is not specified in the contract. Or forcing workers to pay those expenses which employer is liable to pay.

SR 25,000 fine on employer on false Saudization claims. Also employer cannot offer a job to expat which job is restricted to Saudi only.

SR 50,000 fine on selling visas to expatriates.

New Regulations by Saudi Ministry of Labor and list of new fines
New Regulations by Saudi Ministry of Labor and list of new fines

Companies are required to pay the fine within one month and they may appeal against fine within 60 days, once the violation has been registered.

For more details you may visit Saudi Gazette newspaper website.

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