ISLAMABAD: Saudi Arabia’s Ministry of Human Resources and Social Development has introduced significant amendments to the schedule of violations and penalties under the Labour Law and its executive regulations, effective immediately from February 25, 2026. Minister Ahmed Al-Rajhi issued the ministerial order, reclassifying violations into clearly defined categories to enhance compliance, protect workers’ rights, and ensure labour market stability.
The revisions aim to address persistent issues in recruitment practices, unauthorised employment, and sector-specific breaches. Key changes include steeper fines for hiring foreign workers without valid permits and severe penalties for unlicensed recruitment activities.
Employers hiring a non-Saudi worker without a valid work permit now face a fine of SR10,000 per violation. This measure targets illegal employment and reinforces the requirement for proper documentation and authorisation in the labour market.
Individuals or entities engaging in the employment or recruitment of Saudi nationals or foreign workers without proper authorisation face substantial penalties. The fine starts at SR200,000 for the first offence, escalates to SR220,000 for the second, and reaches SR250,000 for the third offence.
The amendments reclassify violations according to the nature of activities involved. Categories encompass general violations applicable across all sectors, as well as specialised ones for mining and quarrying, maritime employment contracts, and operations and maintenance activities.
Specific focus areas include violations related to regulations governing recruitment and labour services by human resources and recruitment companies. Breaches concerning recruitment offices, the Domestic Workers Regulations, and advertisements for support labour services are now distinctly categorised.
Additional categories cover violations involving the employment of Saudis, recruitment of workers, or outsourcing without a license. Provisions also address agricultural workers, private shepherds, and similar professions.
These reclassifications provide clearer guidance for establishments and employees. The structured approach facilitates better implementation of regulations and reduces ambiguity in enforcement.
The ministry’s actions align with ongoing efforts to curb illegal recruitment. In recent quarters, authorities have penalised multiple recruitment offices for breaches. For instance, 17 offices faced measures in the fourth quarter of 2025, with six suspensions and 11 licence revocations following inspections.
Earlier enforcement included the seizure of 37 recruitment offices for violations such as non-compliance with recruitment rules and delays in refunds. Such crackdowns underscore the government’s commitment to regulating the sector rigorously.
Domestic workers receive particular attention under separate regulations. Employers are prohibited from charging fees for recruitment, work permits, service transfers, or profession changes. Violations can result in fines up to SR20,000 and recruitment bans of up to three years.
The Musaned platform standardises contracts and oversees recruitment for domestic workers. It ensures transparency and protects both employers and employees from exploitative practices.
Broader labour protections include fines for retaining workers’ passports or residency permits, set at SR3,000 per worker. Failure to document employment contracts electronically incurs penalties of SR1,000 per worker.
These updates reflect Saudi Arabia’s Vision 2030 objectives to create a stable, regulated labour market. By imposing deterrent penalties, authorities seek to minimise exploitation, promote fair employment, and prioritise worker welfare.
The ministry continues inspections and enforcement drives. Recent actions demonstrate proactive measures against unauthorised practices, including those affecting migrant workers from various countries.
Experts view the amendments as a step toward greater accountability. Clearer categories and higher fines are expected to encourage voluntary compliance among employers and recruitment entities.
The changes also address concerns raised in international reports on migrant worker conditions. While challenges persist, strengthened regulations signal improved oversight in recruitment and employment sectors.
Overall, the revised penalties represent a comprehensive effort to modernise labour governance. They balance economic needs with robust protections, aiming for sustainable growth in Saudi Arabia’s diverse workforce.