Saudi Arabia Moves to Expand Labour Law Penalties Across Key Sectors

Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has unveiled a wide-ranging proposal to amend the Table of Violations and Penalties under the Kingdom’s Labour Law and its Executive Regulations. The draft amendments, now published on the Istitlaa platform for public consultation, mark one of the most significant updates in recent years, introducing new categories of violations, expanding coverage to maritime and agricultural sectors, and strengthening penalties for existing infractions.

 

At the heart of the changes lies a push for greater clarity and transparency. By explicitly defining violations and their corresponding penalties, the ministry aims to reduce the room for subjective judgment by inspectors and employers alike. The updated framework seeks to encourage compliance across diverse industries, adapt to emerging work patterns such as flexible employment, and reinforce worker protections in line with international labour standards.

 

Clearer Rules, Harsher Penalties

The proposed amendments set out a wide range of violations, some newly defined and others refined to close regulatory gaps. For instance, employers who fail to grant maternity leave to women employees as mandated by law will face a fine of SR1,000. This clarification addresses recurring disputes over maternity-related benefits, underscoring the ministry’s commitment to safeguarding women’s rights in the workplace.

 

Recruitment agencies and companies providing labour services will also face tougher scrutiny. Violations such as failing to properly document worker information in the ministry’s digital systems, or neglecting to inform workers of their rights and obligations under their contracts, now carry more severe consequences. Penalties include financial fines, official warnings, suspension of operating licenses for up to 12 months, and, in extreme cases, permanent licence revocation.

 

These measures, according to ministry officials, are designed not only to deter malpractice but also to ensure that recruitment channels operate in a transparent and ethical manner.

 

Maritime Sector Brought Under Scrutiny

In a significant expansion, the amendments introduce an entirely new category of violations relating to maritime labour. Penalties in this sector range from SR300 to SR1,000 and cover a spectrum of safety and welfare issues.

 

Employers who fail to comply with maritime labour contract regulations, hire individuals under the age of 18 for shipboard duties, or ignore prescribed work-hour and rest-period rules for seafarers will be subject to fines. Other violations include withholding seafarers’ wages, failing to provide suitable accommodation when workers cannot be housed onboard, and interfering with captains’ authority to make critical safety decisions.

 

By codifying such penalties, the ministry aims to align Saudi maritime labour standards with international conventions, ensuring safer working conditions for seafarers and greater accountability for employers in a high-risk sector.

 

Agricultural Sector Reforms

Another major feature of the proposed amendments is the inclusion of specific violations for agricultural work, with penalties ranging from SR300 to SR20,000.

 

Infractions include hiring workers under the age of 21, denying daily and weekly rest entitlements, failing to grant vacation days, and neglecting to provide suitable housing or meals. The regulations also prohibit forced labour practices and explicitly forbid employers from preventing workers from contacting their families, embassies, or recruitment agencies.

 

These reforms reflect the government’s recognition of agriculture as a vital sector where labour rights must be safeguarded, particularly given the sector’s reliance on vulnerable, often low-wage workers.

 

Balancing Rights and Responsibilities

The ministry has emphasized that the purpose of the amendments is not only punitive but also preventive. By providing clear, detailed classifications of violations, the updated regulations are expected to reduce ambiguities in enforcement, making it easier for businesses to comply and for inspectors to apply the rules uniformly.

 

“This reform is about building a fairer, more transparent labour market,” the ministry stated in its consultation document. “By clarifying obligations and penalties, we are protecting both workers and employers, strengthening trust, and ensuring that Saudi Arabia remains aligned with global labour practices.”

 

Next Steps

As part of the regulatory process, the ministry is soliciting feedback from the public, businesses, and industry stakeholders via the Istitlaa platform. Following this review, the finalized amendments will be incorporated into the Labour Law and its Executive Regulations.

 

Observers note that these reforms come at a critical time, as the Kingdom seeks to modernize its labour market, expand economic diversification under Vision 2030, and meet international benchmarks for worker rights. By extending oversight to previously underregulated sectors such as maritime and agriculture, the MHRSD is signalling a comprehensive approach to labour governance.

 

If approved, the amendments will represent a significant step forward in creating a more transparent, accountable, and equitable labour environment in Saudi Arabia -- one that balances the responsibilities of employers with the rights of workers across all industries.