Saudi Arabia: SR 100,000 fine for employers who hire workers not under their sponsorship
The Chairman of Chamber of Commerce and Industry in Saudi Arabia, Abdul Rahman Al-Zamil, has announced a new system of labor regulations whereby an employer will be fined SR100,000 if he hires workers that are not under the company sponsorship.
In addition, sponsors will also be fined if they give employees jobs that are not related to their experience. Furthermore, a new list of labor regulations and procedures will be soon announced in order to protect foreign workers and sponsor rights.
The fine will not be applicable to the sponsor in the event of escape by the worker, provided that the sponsor communicates this information to the concerned authorities.
Al-Zamil also mentioned that this system has already been implemented in the UAE with 50,000 Dirhams fine and if the offence is repeated, the same amount of fine applies again in addition to jail time. The Chairman of Chamber of Commerce in Riyadh added that the new penalty system would control the current chaotic state of the labor force in Saudi Arabia.
The Saudi Ministry of Labor stated that it will not be lenient after the 3-month deadline granted to correct the status of residency law violators. According to a proposal submitted by the Ministry, expatriates will have two options- either to leave the country immediately without a fine of SR10,000 or convert the visa to permanent resident status in the country, “AlEstiqdiya” newspaper reported.