HRSD ministry amends penalties, violations schedule to Labor Law

Logo of Ministry of Human Resources and Social Development (HRSD)

The Ministry of Human Resources and Social Development (HRSD) announced today, Dec. 10, amending the schedule of violations and penalties under the Saudi Labor Law.

The amendments aim to improve the labor market environment by aligning financial fines to the sizes of private-sector establishments, according to a ministerial statement.

This is part of ongoing efforts to review labor market regulations, support establishments’ stability, ensure workers' rights, and boost the attractiveness and flexibility of the Kingdom’s labor market.

The ministry's new amendments adjust the value of penalties based on the establishment size: Category A for 50+ workers; Category B for 21-49; Category C for 20 or less. These changes aim to enhance compliance and support for local establishments by tailoring financial penalties to fit the scope of the private sector, thus improving the labor market.