Overview of Fine on Saudi Employer

It is quite admirable and worth noting that the Ministry of Labor has been very proactive in ensuring the compliance with the Saudi labor laws by the individual employers, firms and the companies operating in Saudi Arabia. This is beneficial for both the employers and the Saudi expat and Saudi citizen employees as any violations by either party can be taken care of promptly upon non-compliance. The Saudi Labor Laws and the related regulations allow the Saudi expat and Saudi citizen employees to feel secure and provides the ultimate guidelines to the employer to implement the same in the Company. The Ministry of Labor has listed down the fine on Saudi employer accordingly.

THE MINISTRY OF LABOR HAS MADE IT CLEAR THAT THE EMPLOYERS MUST COMPLY AND ADHERE TO THE GUIDELINES LISTED BELOW, THE NON-COMPLIANCE OF WHICH ENTAIL THE FOLLOWING PENALTIES.

 

1) Withholding Worker’s Salary

According to the directives issued under the Saudi Labor Laws by the Ministry of Labor and Social Development, the employer must not withhold any Saudi expat or Saudi worker’s full or part-time salary.

Any withholding of full or partial salary by the employer for any expat or Saudi employee is subject to the fine on Saudi employer amounting of SR. 5,000.

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2) Hiring of Saudi Male Expat Workers on Jobs Restricted to Saudi Nationals

The Ministry of Labor and Social Development has made it clear that the employers must not hire any male expat worker on the jobs which are restricted to Saudi Nationals only.

Any non-compliance of the above will be subject to the fine of SR. 10,000 plus the one-day closure of the company.

 3) Hiring a Saudi Expat Worker Without Contract

The employer must ensure that while recruiting an expat or Saudi citizen employee, the contract for the relevant job offer must be prepared and shared with the employees. The expat employee should read it before signing the contract which means he agrees to the clauses and the conditions mentioned in the contract.

The Saudi Labor laws and its regulation issued by the Ministry of Labor and Social Development states clearly that the employer will be subject to the fine on Saudi employer of SR. 5,000 in case of the recruitment of the employee without the contract or the copy of the contract.

4) Maintenance of Saudi Workers’ Records

The Ministry of Labor and Social Development has clearly specified to the employers that they must maintain the workers’ records which should disclose the “Names, Salaries, Fines, attendance and medical tests” of the workers.

The employer will be subject to the fine of SR. 5,000 if they fail to comply with the maintenance of abovementioned records of the workers.

 

5) Hiring of Saudi Expat Workers on Jobs Restricted to Saudi Nationals

The Ministry of Labor and Social Development has already announced that the employers must not hire any Saudi expat worker on the jobs which are restricted to Saudi Nationals only.

Any non-compliance of the above will be subject to the fine on Saudi employer of SR. 20,000.

 6) Saudi Expat Worker’s Passport

The Saudi Labor laws and its regulation issued by the Ministry of Labor and Social Development states clearly that the employer will be subject to the fine of SR. 2,000 if the employer keeps the Saudi expat workers’ passports without their approval.

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  7) Work Contracts Offered to Employees Should be in the Arabic Language Also

The employer must ensure that while recruiting an employee, the contract for the relevant job offer must be prepared and shared with the expat or Saudi employees. The work contracts must be written in the Arabic language as well as per the prevailing regulation of the Saudi Labor laws.

The Saudi Labor laws and its regulation issued by the Ministry of Labor and Social Development states clearly that the employer will be subject to the fine of SR. 5,000 for the above non-compliance.

  8) Registration of Saudi Employees with GOSI without Approval

The Saudi Labor laws and its regulation issued by the Ministry of Labor and Social Development states clearly that the employers must obtain the prior approval of the General Organization for Social Insurance (GOSI) for the purpose of registering the Saudi employees. Any such non-compliance by the employer will be subject to the fine on Saudi employer amounting of SR. 25,000 ($6,700).

 9) Compliance with the Training Contract

The Ministry of Labor and Social Development regulations state that the employer must comply with the conditions and the clauses mentioned in the training contract with the trainee. The conditions and the related clauses must be mutually agreed with proper consent of the parties involved.

The Saudi Labor laws and its regulation issued by the Ministry of Labor and Social Development states clearly that the employer will be subject to the fine of SR. 5,000 if the compliance with the training contract is not ensured.

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Source: Arab News