The Saudi Ministry of Human Resources and Social Development has just made some really big changes in the fines that companies have to pay if they break labor laws. These changes are important because they affect how much businesses have to pay if they do things against the rules
Now, companies are put into different groups based on how many employees they have. The big ones with over 50 employees are in Category A, the medium-sized ones with 21 to 49 employees are in Category B, and the small ones with 20 or fewer employees are in Category C.
If companies don’t follow the rules about who they can hire, they used to get hefty fines. But now, the fines have been reduced. For Category A, it’s 8,000 riyals, for Category B, it’s 4,000 riyals, and for Category C, it’s 2,000 riyals.
Keeping the workplace safe is super important. If companies didn’t do a good job with safety before, they had to pay big fines. But now, they won’t have to pay as much. For Category A, it’s 5,000 riyals instead of 10,000, for Category B, it’s 2,500 riyals instead of 5,000, and for Category C, it’s 1,500 riyals instead of 2,500.
Making sure the work environment is safe and healthy is also a must. For Category A, it’s 1,000 riyals instead of 5,000, for Category B, it’s 500 riyals instead of 2,000, and for Category C, it’s 300 riyals instead of 1,000.
When it’s really bad weather, companies need to make sure workers are safe. Now, it’s a flat 1,000 riyals fine for all categories.
If companies don’t provide medical insurance, they used to get hit with big fines. But now, they will pay less. For Category A, it’s 1,000 riyals, for Category B, it’s 500 riyals, and for Category C, it’s 300 riyals.
If companies hired young workers or women who just had a baby, they used to pay a lot. But now, it’s less. For Category A, it’s 2,000 riyals for minors and 1,000 riyals for post-childbirth hirings.
If companies put Saudis in jobs that should be only for them, it used to cost a lot. Now, it’s a 1,000-riyal fine for Category A, 5,000 riyals for Category B, and 2,500 riyals for Category C.
Giving false information to the ministry was a big deal before, but now it’s a smaller 3,000-riyal fine, way less than the previous 20,000 riyals.
Companies that were found guilty of unfair hiring practices used to pay big fines. But now, they’ll pay less. For Category A, it’s 3,000 riyals, for Category B, it’s 2,000, and for Category C, it’s 1,000.
Finally, if companies don’t pay salaries on time and in the right currency, it used to cost them a lot. But now, it’s a fixed 300-riyal fine.
These changes aim to make it easier for businesses to follow the rules and promote better work conditions in Saudi Arabia.
