The Kingdom of Saudi Arabia's (KSA) employment and environment has witnessed extensive development in 2023, in particular in the last quarter of the year in the run-up to the Ministry of Investment (MISA) Regional Headquarters (RHQ) programme deadline of 1 January 2024. No formal update has been made to the KSA Labor Law and its Implementing Regulations (KSA Labor Law)1 since the 2021 consultation which proposed changes to it. However, the Ministry of Human Resources and Social Development (MHRSD) has actively been working on improvements to increase efficiency and enhance the rights of employees and employers in KSA. A summary of these changes and their impact for employers are discussed below.
The most recent and significant update on 10 December 2023 has been the issuance by the MHRSD of the amendments to the list of violations and penalties under the KSA Labor Law. Companies are categorised into classes in accordance with the number of employees they have, with higher monetary fines for larger companies. 92 different violations have been detailed, with the following summarising some of the key updates:
| No. | Description of violation | Fine (in SAR) | ||
|---|---|---|---|---|
| Class C (20 workers or less) | Class B (from 21 to 49 workers) | Class A (50 workers or more) | ||
| 1. | The employer's failure to adhere to the rules of occupational protection, health and safety (approved by the MHRSD) and failure to take the necessary precautions to protect workers in all activities. The employer... |
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