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Artikel

9 Feb 2024

Autor:
Migrant-Rights.Org

Saudi Arabia: Govt. reduces penalties for employers’ labour law violations, incl. smaller fines for wage theft, overwork & passport confiscation

“Saudi Arabia reduces penalties for employers’ labour law violations”

Saudi Arabia has significantly reduced fines levied on employers for various contract violations, including wage theft, failure to provide a weekly day off, and passport confiscation. The Minister of Human Resources and Social Development (MHRSD) issued a ministerial decision on 10 December 2023, amending the schedule of penalties of the labour law and its executive regulations.

These violations include non-payment of wages, failure to provide a weekly day off, and passport confiscation.

The Saudi government has gradually lowered fines and penalties for employers violating labour laws in recent years. In 2019, penalties were imposed on businesses regardless of their size. A subsequent amendment in 2021 introduced size-based disparities…

Violations are now classified as ‘serious’ or ‘not serious.’ The amendment does not stipulate the criteria for this classification or whether additional penalties are imposed for ‘serious’ violations.

The classification also presents some contradictions. For instance, while confiscating passports is labelled a ‘serious’ violation, the new decision actually reduces the fines for this offence to SAR 1000 (US$ 266) per violation…

The reduced fines coincide with the Saudi government’s substantial investment in its private sector and large-scale infrastructure projects in recent years…