Labour law overhaul: Saudi introduces penalties for violators in new sectors

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The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has proposed major amendments to the country’s Labor Law and its Executive Regulations, adding a series of new violations and penalties aimed at ensuring fair treatment of workers and stronger compliance from employers.

The ministry made the proposed changes public via the Istitlaa platform, inviting feedback from citizens, businesses, and stakeholders before final adoption. The updated Table of Violations and Penalties marks a significant shift in labor regulation, introducing sector-specific enforcement for the first time in the maritime and agricultural industries, a Saudi Gazette report said.

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“These updates are intended to create a clearer, more consistent framework for enforcing labour rights,” the ministry said in a statement.

“They promote transparency, reduce ambiguity, and reflect the evolving dynamics of the Saudi labor market.”

New sectors, new rules: Maritime and agriculture in focus

Among the most notable changes is the introduction of violations specific to maritime work, with fines ranging between SAR300 and SAR1,000. These cover a range of offenses, including:

• Hiring individuals under the age of 18 on Saudi ships or naval units.
• Ignoring contractual obligations in maritime labor agreements.
• Delayed or missed wage payments to seafarers.
• Interfering with a ship captain’s decision-making regarding crew and vessel safety.
• Failing to provide adequate off-board accommodation for seafarers when needed.

In the agricultural sector, penalties are more substantial, ranging from SAR300 to SAR20,000, depending on the violation. Offenses in this category include:

• Employing workers below the legal age of 21.
• Denying required daily or weekly rest periods.
• Failing to provide legally mandated vacation time.
• Neglecting to offer food, housing, or monetary compensation.
• Engaging in or facilitating forced labor.
• Preventing workers from contacting their families, embassies, or recruitment agents.

These additions reflect the kingdom’s commitment to closing loopholes in labor protections across diverse economic sectors, especially where vulnerable or migrant workers may be at risk.

Existing violations face harsher penalties

The proposed amendments don’t stop at new categories, they also tighten enforcement on existing labor regulations. A clear example is the explicit inclusion of maternity leave violations, where failure to grant leave to eligible women now carries a SAR1,000 fine.

Recruitment firms and labor service providers are also under greater scrutiny. Violations such as failing to register worker information in ministry-approved systems, or not informing workers of their contractual rights, will now face a layered system of consequences. These include:

• Monetary fines.
• Official warnings.
• License suspension for up to six months in some cases and up to 12 months in others.
• Permanent license revocation for serious or repeat offenses.

“These updates ensure accountability for recruitment practices and help protect the dignity and rights of workers from the outset,” the ministry stated.

Supporting flexibility, enhancing accountability

The revised law reflects Saudi Arabia’s efforts to modernize its labour system in response to emerging work models, including part-time and flexible roles. By clearly outlining violations and setting predefined penalties, the government hopes to create greater predictability and fairness in labor inspections and dispute resolution.

“Clear definitions reduce subjective judgment by inspectors and provide employers with consistent standards to follow,” the ministry explained.

These amendments are currently in the consultation phase, with the government encouraging the public to provide input via the Istitlaa platform. Once finalised, they will be incorporated into the Labor Law and its Executive Regulations.

By taking this step, Saudi Arabia aims to align its labor practices more closely with international standards, support fair employment practices, and reinforce the country’s vision for a more inclusive and equitable labour market.