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A New Law To Protect Staff Means Employers Could Face Fines Of SAR10,000

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Good news to those working in the Kingdom who might have gotten unfair treatment from their employers, in terms of annual leaves and holidays. A report by Saudi Gazette confirmed that employers will now be fined a hefty SAR 10,000 if they violate the Labor Law provision- regarding the supposed holidays of their employees. 

Other violations that can get employers fined 

The Minister of Labor and Social Development, Ali Al-Ghafees, approved the revisions to make amendments in order to develop Saudi’s labor market. Other violations within labor law are subject to fines of upto thousands of riyals…

  • As per Article 38 of the Labor Law, allowing a non-Saudi employee to work a job other than the specific one on their work permit can get employers fined SAR 10,000.

  • Article 15 is not opening a file of the firm in the Labor Office or updating information of their firm/business at the office can also get you SAR 10,000 in fines. 

  • SAR 2,000 is the fine if employers keep their staff’s passport, iqama (residence ID) or medical insurance card without their consent.

  • SAR 10,000 for non compliance with organisational rules.

  • If the Wage Protection file isn’t submitted to the Labor Office monthly, this can also lead to a fine of SAR 10,000.

  • If a company or firm is unable to meet the needs of their staff’s health and occupational safety- a SAR 15,000 fine will be imposed.

Fines can be doubled if employers don’t comply with them a second time. Fines are meant to be settled within the same month it was given, otherwise, it will be doubled.

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