Gulf News (United Arab Emirates), 3 September 2023: Saudi Arabia’s Human Resources and Social Development Ministry has announced a raft of amendments to labour law penalties in the Kingdom. The fines will be imposed based on the category of the establishment. Categories are now determined by the total number of employees.

Category A includes entities with more than 50 employees, Category B is designated for those with 21 to 49 employees and Category C encompasses establishments with one to 20 employees.

In terms of employers who fail to comply with Saudisation quotas or employ non-Saudis in roles reserved for Saudi nationals, offenders in Category A will be fined 8,000 Riyals, offenders in Category B 4,000 Riyals and offenders in Category C 2,000 Riyals.

When it comes to non-compliance with protection, safety, and occupational health standards, the penalties have also been amended. Offenders in Category A will be fined 5,000 Riyals instead of 10,000 Riyals, offenders in Category B 2,500 instead of 5,000 Riyals, and offenders in Category C between 1,500 instead of 2,500 Riyals.

The penalties for those who do not establish appropriate safety guidelines have also been amended. Offenders in Category A will be fined 1,000 Riyals instead of 5,000 Riyals. Offenders in Category B will be fined 500 Riyals instead of 2,000 Riyals and offenders in Category C 300 Riyals from 1,000 to 300.

Those who employ workers under extreme weather conditions without necessary safety measures will be fined 1,000 Riyals, regardless of the category they are in. Entities who fail to provide medical insurance to employees and their families will be fined 1,000 Riyals if they are in Category A, 500 Riyals if they are in Category B, and 300 Riyals if they are in Category C.

Those who employ minors will be fined 2,000 Riyals if they are in Category A. Employers who hire women within six weeks after childbirth will be fined 1,000 Riyals.

Category A establishments who employ Saudis in roles reserved exclusively for them will be fined 1,000 Riyals. Offenders in Category B will be fined 5,000 Riyals and offenders in Category C 2,500 Riyals. Entities who misrepresent data to the Ministry will be fined 3,000 Riyals instead of 20,000 Riyals.

Category A entities who carry out discriminatory hiring practices will be fined 3,000 Riyals, while those in Category B who commit the offence will be fined 2,000 Riyals and offenders in Category C 1,000 Riyals. Establishments not paying salaries in the official currency within the stipulated timeframe will be fined 300 Riyals.

Also reported in Al Madina on 23 August 2023. Read the full story here.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.