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News Saudia > Business > Saudi Ministry Proposes Fines Up to SR250,000 for Unlicensed Recruitment Activities
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Saudi Ministry Proposes Fines Up to SR250,000 for Unlicensed Recruitment Activities

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Last updated: September 16, 2026 4:04 pm
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The Ministry of Human Resources and Social Development has proposed revisions to the table of violations and penalties under the labor system and its executive regulations, with a focus on increasing sanctions against unlicensed activities in recruitment and employment. According to the project, practicing such activities without a license would result in fines reaching SR250,000 in addition to possible suspension of any related license for up to six months. The authority framed the changes as necessary to protect worker rights and maintain an orderly labor market.[[1]](https://www.okaz.com.sa/news/local/2213367)

The updated table draws a clear line between serious violations that touch on worker rights or create direct workplace hazards and those considered non-serious, with penalties scaled to the size of the establishment. Establishments fall into one of three categories, where category C covers those with 20 or fewer workers, category B includes 21 to 49 workers and category A applies to those with 50 or more. This structure allows the ministry to apply proportionate yet effective enforcement across different scales of operation.

Parallel updates in the same proposal set the fine for employing a non-Saudi worker without a valid permit at SR10,000 per case, with the amount multiplied by the number of workers involved. The ministry also raised penalties for registering Saudi nationals without a genuine employment relationship or for hiring non-Saudis in professions reserved for citizens. A review by DLA Piper noted that the full set of revisions forms part of wider steps to support labor-market stability and regulatory compliance.[[2]](https://knowledge.dlapiper.com/dlapiperknowledge/globalemploymentlatestdevelopments/2026/increased-fine-set-for-unlicensed-foreign-hiring)

Workplace safety provisions received similar attention, with fines for failing to observe occupational health rules ranging from SR1,500 for smaller establishments to SR5,000 for larger ones. The proposal requires safety instructions in languages workers understand, including Arabic and English, and imposes separate penalties for lacking first-aid kits or medical insurance coverage. Violations involving child labor under age 15 or improper employment of minors carry per-case fines between SR1,000 and SR2,000 depending on the establishment category.

Financial protections for employees feature prominently in the revisions, including fines of up to SR3,000 per worker for unjustified delays or withholding of wages. Establishments must file wage protection records monthly or face additional penalties reaching SR2,000, while failure to settle end-of-service entitlements or provide service certificates triggers comparable sanctions. The ministry further specified penalties for not documenting contracts electronically, set at SR1,000 per worker.

Ministry officials published the draft table on the Istithlaa public consultation platform to solicit views from stakeholders and the public before final adoption. The platform process allows interested parties to comment on both the classification of violations and the graduated fine structure. Such consultations have become standard practice in labor regulation changes to refine rules before enforcement begins.

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News Saudia NewsDesk is the desk responsible for News Saudia's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.
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