Ministry of HR Announces Penalties for Companies in Support Workers

The Minister of Human Resources and Social Development announced new penalties for private sector companies for exploitation. These rules are mainly focused on Sanad System and safeguard the workforce in the Saudi Arabia.

Saudi Ministry of HR Penalties Private Sector and Supporting Workers

These rights depend on the application of violations and penalties to establishments benefiting from compensation in the Sanad System. It is mentioned that this decision is part of the Ministry’s efforts to support workers in the private sector and to ensure worker’s rights, especially after the effects of the Covid-19 and to improve and develop the work environment and maintain the labor market gains from the workforce.

Description of ViolationPenalties
Excluding workers after the compensation period ends50 thousand riyals (multiply with number of employees)
Non-commitment to pay the wages of workers not included in the compensation compensation10 thousand riyals (multiply with number of employees)
Refrain from paying the workers wages after the compensation period ends20 thousand riyals (multiply with number of employees)

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