Saudi Arabia has tightened its labour rules again. This time, the focus is clear: stronger enforcement and bigger fines for employers who break the law.

The Ministry of Human Resources and Social Development has revised its penalty list. The goal is simple. Bring more order to the labour market and make sure hiring practices follow the rules.

If you work in the Kingdom or plan to, here is what these changes really mean.

SR10,000 Fine for Hiring Without a Valid Work Permit

Let’s start with the biggest takeaway. Employers who hire a foreign worker without a valid work permit will now face a fine of SR10,000.

This is not a small administrative warning. It is a direct financial penalty aimed at stopping illegal employment.

For foreign workers, this reinforces one thing: always check that your work permit and residency status are valid and properly issued before starting a job.

Electronic Contracts Are Now Mandatory

Another big change is that paper contracts are no longer enough. Employers who fail to document employment contracts electronically will be fined SR1,000 per worker.

Saudi Arabia has been pushing digital systems across government services for years. This move strengthens that shift and makes employment records easier to track and verify.

Tougher Action on Child Labour

Hiring a child under 15 is now treated as a serious violation under Article 167 of the Labour Law. Companies with 50 or more workers can face fines of up to SR2,000 in such cases.

There are also penalties for breaking rules related to employing juveniles under Chapter 10 of the Labour Law. Each violation can cost SR1,500.

The message is clear. Child labour violations will not be tolerated.

Fines for Holding Passports or Residency Cards

This is important for expats. If an employer keeps a worker’s passport or residency permit, the fine will be SR3,000 per worker. Retention of personal documents has long been a concern among foreign workers. This rule gives authorities a clear financial tool to act against it.

Maternity Leave and Childcare Requirements

Employers must grant statutory maternity leave. If they fail to do so, they face a fine of SR1,000 per worker.

There is one more childcare rule many may not know about.

If a company employs 50 or more women and at least 10 children under the age of six are among their workforce families, the company must provide childcare facilities or a nursery.

Failure to comply results in an SR3,000 fine.

This reflects a broader push to support working women in the Kingdom.

Heavy Fines for Unauthorised Recruitment

The toughest penalties target unauthorised recruitment. Anyone who recruits or employs Saudi nationals or foreign workers without proper authorisation faces:

• SR200,000 for a first offence
• SR220,000 for a second offence
• SR250,000 for a third offence

These are significant amounts. The government is clearly trying to shut down informal or illegal recruitment networks.

What This Means for Foreign Workers

If you are an expat working in Saudi Arabia, here’s the practical takeaway:

• Make sure your work permit is valid.
• Ensure your contract is properly registered.
• Never allow your employer to keep your passport.
• Know your rights regarding maternity leave and workplace protections.

For employers, compliance is no longer optional. The financial risks are too high.

Saudi Arabia is tightening oversight of its labour market. For foreign workers and companies alike, following the rules is now more important than ever.

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