Amendments to the Saudi Labor Law Violations Schedule: A Comprehensive Guide 2024
His Excellency the Minister of Human Resources and Social Development, Engineer Ahmed bin Sulaiman Al-Rajhi, issued a ministerial decree amending the schedule of violations and penalties in the Labor Law and its implementing regulations. This decree comes within the framework of the Ministry's ongoing efforts to develop the legislative environment of the Saudi labor market and enhance its stability and growth in line with best international practices.
Background of the decision and its strategic objectives
This update falls within the broader context of structural reforms underway in Saudi Arabia under Vision 2030, which aims to build a prosperous and diversified economy. Developing the labor market is a cornerstone of this vision, as the government seeks to create an attractive work environment for both local and foreign investment, and one that fosters national and international talent. The decision primarily aims to support labor market stability, protect the rights of both employees and employers, and enhance the attractiveness and flexibility of the work environment, thereby directly contributing to increased efficiency and sustainability in businesses.
The importance of the amendments and their expected impact
The significance of these amendments lies in their alignment with recent updates to the Labor Law, enacted by Royal Decree No. 8/2/1446 AH (corresponding to 2025 CE), and subsequent amendments to its implementing regulations. Domestically, the decision is expected to enhance compliance with regulations and reduce labor disputes by clearly outlining violations and their corresponding penalties. It also strengthens the transparency of the contractual relationship between employers and employees. Regionally and internationally, this step reinforces the Kingdom's reputation as a reliable investment destination committed to protecting the rights of all parties, thereby increasing its competitiveness in attracting global companies and skilled labor.
Reclassifying violations to increase clarity
The new amendments included a comprehensive reclassification of several violations, grouping them into specific categories according to the nature of economic activities. This provides greater clarity for businesses and employees in understanding and applying the regulations. Among the most prominent of these categories are:
- The category of general violations that applies to all activities.
- Category of violations related to the operation of mines and quarries.
- Category of violations related to the provisions of the Maritime Employment Contract Regulation.
- Category of violations related to operation and maintenance activities.
- Specialized categories for recruitment activities, human resources companies, and recruitment offices.
- Category of violations related to the domestic worker regulations.
- Category of violations related to agricultural workers, herders, and those in similar situations.
The ministry stressed that this precise classification aims to address the specific challenges of each sector individually, and to ensure the application of penalties commensurate with the size of the violation and the nature of the activity.
A step towards a sustainable future of work
It is worth noting that the Ministry of Human Resources and Social Development had previously released a draft of the decision for public and stakeholder consultation through the “Survey” platform, reflecting the Ministry’s participatory approach to developing regulations. The Ministry invited all interested parties and business owners to review the details of the amendments on its official website, confirming that the updated schedule will be implemented starting from the date of the decision’s issuance. These updates represent a significant step towards achieving a mature and flexible labor market that supports the Kingdom’s sustainable economic growth.
