- Saudi Arabia has introduced a SR10,000 fine for employers hiring foreign workers without valid permits
- The Ministry of Human Resources and Social Development tightens labour rules to curb abuse and protect workers’ rights
- The new penalties target child labour, passport retention, and undocumented contracts
The Kingdom of Saudi Arabia has introduced a new penalty system aimed at regulating the labour market and curbing illegal employment practices.
Under the new rules, employers who hire foreign workers without valid permits will face an SR10,000 ($2,666) fine.
The Ministry of Human Resources and Social Development stated that the reforms are intended to “habitualisation of the labour market, curbing of abuse, and an assurance that both employers and workers adhere to current rules or regulations of employment and abuses.”
The amendments to the Penal Code target various violations, including undocumented contracts, illegal recruitment, child labour, passport retention, and breaches of maternity and childcare provisions.
Officials explained that the fines aim to discourage the widespread practice of informal hiring. Employers who fail to digitally register contracts will incur a penalty of SR1,000 ($266) per unregistered worker.
The digitisation drive is part of broader governance reforms designed to enhance transparency and improve enforcement of labour regulations.
Child labour restrictions have also been tightened. The employment of children under 15 is now classified as a crime under Article 167 of the Labour Law, with companies employing 50 workers or more facing fines of up to SR2,000 ($533.28).
Additionally, violations involving underage employment attract a SR1,500 fine per incident under Chapter 10 of the law.
Another key provision addresses the long-standing issue of document retention. Employers who confiscate or withhold a worker’s passport or residency permit will be fined SR3,000 per worker.
This measure strengthens enforcement against practices that workers have previously reported as exploitative.
The most severe penalties concern unauthorised recruitment. Individuals or companies recruiting workers without proper authorisation will face a minimum fine of SR200,000 ($53,327) for a first offence.
The penalty rises to SR220,000 ($58,660) for a second violation and SR250,000 for subsequent offences.
In parallel with labour reforms, the kingdom is modernising its immigration and border systems.
Authorities have launched a Self-Deportation Platform and an artificial intelligence-driven Smart Track system to streamline passenger processing at airports and entry points.
During the Digital Government Forum 2025 in Riyadh, the acting director-general of passports, Saleh Al-Murabba, said the initiatives form part of a nationwide push to “modernise administrative operations and leverage advanced technologies to improve efficiency and security, as well as regulatory compliance.”