His Excellency the Minister of Human Resources and Social Development Eng. Ahmed bin Sulaiman Al Rajhi issued a Ministerial decision to amend the Schedule of Violations and Penalties under the Labor Law and its Implementing Regulations. This is part of ongoing efforts to review labor market regulations, support establishments’ stability, ensure workers' rights, and boost the attractiveness and flexibility of the Kingdom’s labor market.
The Ministry explained that the Ministry's new amendments adjust the value of penalties based on the establishment size, which depends on the number of employees therein: Category A for 50+ workers; Category B for 21-49; Category C for 20 or less. These changes aim to enhance compliance and support for local establishments by tailoring financial penalties to fit the scope of the private sector, thus improving the labor market environment by adapting financial fines to the sizes of establishments in the private sector.