Penalties

Q. What happens if an employee violates the rules in Saudi Arabia? 

If a domestic worker breaks the rules outlined in these regulations, they may face one or both of these punishments:

• A fine up to 2,000 riyals.
• A permanent ban on working in Saudi Arabia.

The amount of the fine will increase depending on how many times they break the rules. The worker is responsible for paying for their own flight home. If they can't afford the fine and their flight, the government will deport them at their own expense.

Also Read: Emiratisation Fines: What are the Penalties for Non-Compliance to Nafis Program?

Q. What are the penalties for employers in Saudi Arabia who violate the regulations outlined in the law?

Employers who break the rules face increasing penalties depending on how many times they violate the regulations.

Here's the breakdown:

• First offense: A fine up to 2,000 riyals OR being barred from using recruitment services for one year. They could face both penalties as well.
• Second offense: A fine between 2,000 and 5,000 riyals OR being barred from using recruitment services for three years. Again, they could face both.
• Third offense (or more): The committee can permanently ban the employer from using recruitment services.

The amount of the fine increases with each violation.

Q. What is the penalty for violating rules on bringing in foreign workers?

According to the law, any person who brings foreign workers into the Kingdom in numbers exceeding those permitted under the rules, regulations and decisions shall be punished with a fine between 2,000-5,000 SAR for every extra worker brought in illegally. The fine amount doubles for repeat violations of the same offence.

Also Read: What is a Disciplinary Action?

Q. What is the penalty for violating wage provisions in KSA?

If you are violating rules regarding payment of wages in the official currency during working hours at the workplace in Saudi Arabia, the fine is between 300-500 SAR.

Q. What is the penalty for refusing to comply with arbitration decisions from commissions?

According to Article 205, the penalty for refusal to comply with legally binding decisions, instructions or orders issued by dispute resolution commissions is
1) Double the fine originally imposed
2) Imprisonment up to 3 months
3) A fine between 500-1000 SAR.

Also Read: What is Gross Misconduct?

Q. Where does the money from fines for violations go in KSA?

All fines collected for violations of provisions of the Labor Law shall go into a special account within the Workmen's Social Insurance Fund. This money shall be used to improve work conditions and standards in the Kingdom.

Q. Under what conditions can a worker's salary be lowered in KSA?

As per the law, an employer may only reduce a worker's wage in cases that are explicitly permitted under the Labor Law itself or related decisions. A worker's wage cannot be reduced for any other reason without legal justification.