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Labour Penalties For Employers and Sponsors in Saudi Arabia

Aside from employees, employers have their duties and responsibilities too. Aa an expat working in Saudi Arabia should know about the labor penalties for employers and sponsors so you would have a better idea of the system that controls and affects the employee-employer relationship here in the country.

Also Read: Steps in Getting a Work Visa in Saudi Arabia

Saudi Arabia is a country that imposes strict compliance not only to expat employees but as well as to employers and sponsors too. If you find yourself under the excessive power of your sponsor, you can avoid making the problem bigger by knowing the rules and regulations that can be used against the actions of your employer. Don’t get too intimidated by their manipulating power as the law exists to help you and make the environment better for you as an expat employee. For the list of labor penalties for employers and sponsors, here’s the what you need to know.

Employer Penalties

Major Violations of Employers and Their Penalties

  • If your employer or sponsor keeps your passport without your consent or approval, they can be penalized SR 2000 for him.
  • If the employer or sponsor doesn’t hand you out the employment contract in Arabic language, the penalty is SR 5000 for him.
  • If there is a clause about training in your employment contract and your employer or sponsor doesn’t adhere to what’s written in the clause, the penalty is SR 5000.
  • If the employer or sponsor doesn’t release the salary of employees, the penalty is SR 5000.
  • If the employee doesn’t get a copy of the contract from the employer or sponsor, the penalty is SR 5000.
  • If the employer or his company accepts male expat workers for a restricted job of citizens, the penalty is SR 10,000 and closing the business for one day.
  • If the employer or sponsor doesn’t keep employee’s information such as names, attendance, medical tests, and salaries, he would be penalized SR 5000.
  • If the employer or sponsor registers his Saudi citizen employees with the General Organization for Social Insurance without getting the authorities’ permission, the penalty is SR 25,000 plus 5-day closure of business.
  • If the employer or sponsor hires expat employees for the job that should be for Saudi citizens, the penalty is SR 20,000.

Also Read: Employers Falsely Reporting Employees as Absent from Work is Illegal in Saudi Arabia

Now that you have read about the major employer or sponsor violations, you can use this information against your company in case they commit any of it while you are their employee. The list above also justifies why employers adhere to rules and regulations. The main purpose of the list is to let you know that employers obey the law so they can avoid paying charges and obtaining offenses. So, if you think it is unfair to just hire Saudi citizens for jobs that can also be done by expats, read the list again. Employers follow the rules to avoid troubles. No one wants to have their business closed just because they violated a simple provision. To raise awareness with your fellow expats, don’t forget to share this article!

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