Saudi Ministry Inspections Reveal Non-Compliance with Labour Law by 107,329 Companies

A total of 107,329 establishments were found to be non-compliant with various provisions of the Labour Law during inspections conducted by officials from the Ministry of Human Resources and Social Development.

Since the start of 2024 up to mid-July, the ministry’s teams have inspected over 700,200 private sector firms across the Kingdom.

This initiative forms part of the Ministry’s continued efforts to regulate and monitor the labour market, ensuring compliance with Labour Law regulations, according to the Saudi Press Agency.

Violations included issues related to salary payments and Saudisation. Specifically, 59,891 employers were found to have failed to increase wages as mandated by the ministry, while 16,295 cases involved employees who had not received their salaries.

Additionally, there were 7,662 instances of foreigners being employed in roles reserved exclusively for Saudi nationals.

The Ministry has issued 88,776 warnings to establishments in breach of the law. Efforts have been intensified to ensure compliance with job localisation decisions during visits to 522,092 establishments.

These visits resulted in 9,712 job opportunities for Saudi citizens and helped achieve targeted localisation rates in several sectors.

The proportion of establishments adhering to Saudisation requirements has risen to 93.5 per cent. In collaboration with relevant authorities, the monitoring teams conducted 840 visits to petrol stations and service centres throughout the Kingdom.

The Ministry has reported that inspections are ongoing across all regions and governorates of the Kingdom. It has encouraged individuals to report any violations by calling the unified number 19911 or by using the Ministry’s smartphone application.

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