KUALA LUMPUR - Saudi Arabia has revised its labour penalty framework, imposing a fine of SR10,000 on employers who hire foreign workers without valid work permits.

According to a report by Gulf News, the Ministry of Human Resources and Social Development announced the changes to strengthen labour market regulation.

The updated rules also introduce penalties for failing to document employment contracts electronically and for other workplace violations.

The decision was issued by Labour Minister Ahmed Al Rajhi as part of efforts to enhance labour market stability and growth.

Under the revised schedule, employing a child under 15 in violation of Article 167 of the Labour Law is classified as a serious offence.

Establishments with 50 workers or more may face fines of up to SR2,000 for such violations.

Employers who retain a worker’s passport or residency permit will be fined SR3,000 per employee.

Companies that fail to comply with regulations on juvenile employment under Chapter 10 of the Labour Law may be fined SR1,500 for each breach.

The ministry has also set a fine of SR1,000 per worker for employers who do not grant statutory maternity leave.

Businesses employing 50 or more women and having at least 10 children under six are required to provide childcare facilities or nurseries.

Failure to comply with the childcare requirement will result in a penalty of SR3,000.

Employers who do not electronically document employment contracts will face a fine of SR1,000 per worker.

The revised schedule also introduces heavy penalties for unauthorised recruitment practices.

Individuals who recruit or employ Saudi nationals or foreign workers without proper authorisation will be fined SR200,000 for a first offence.

The fine will increase to SR220,000 for a second violation and SR250,000 for a third offence.

The ministry said the stricter measures are intended to improve compliance and promote fair employment practices across the labour market.