Proposed Amendments to Saudi Arabia’s Labor Law: Strengthening Worker Rights and Enforcement
The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has unveiled significant proposed amendments to the country’s Labor Law and its Executive Regulations, aiming to enhance fair treatment of workers and strengthen compliance from employers. The updated Table of Violations and Penalties marks a substantial shift in labor regulation, introducing sector-specific enforcement for the first time in the maritime and agricultural industries.
New Sectors, New Rules: Maritime and Agriculture in Focus
Among the most notable changes is the introduction of violations specific to maritime work, with fines ranging between SAR300 and SAR1,000. These cover a range of offenses, including:
- Hiring individuals under the age of 18 on Saudi ships or naval units.
- Ignoring contractual obligations in maritime labor agreements.
- Delayed or missed wage payments to seafarers.
- Interfering with a ship captain’s decision-making regarding crew and vessel safety.
- Failing to provide adequate off-board accommodation for seafarers when needed.
The introduction of these sector-specific violations reflects the kingdom’s commitment to closing loopholes in labor protections across diverse economic sectors, especially where vulnerable or migrant workers may be at risk. By addressing these critical issues, Saudi Arabia aims to promote a safer and more equitable work environment for all maritime employees.
Agricultural Sector: More Substantial Penalties
In the agricultural sector, penalties are more substantial, ranging from SAR300 to SAR20,000, depending on the violation. Offenses in this category include:
- Employing workers below the legal age of 21.
- Denying required daily or weekly rest periods.
- Failing to provide legally mandated vacation time.
- Neglecting to offer food, housing, or monetary compensation.
- Engaging in or facilitating forced labor.
- Preventing workers from contacting their families, embassies, or recruitment agents.
These additions reflect the kingdom’s commitment to protecting vulnerable workers and promoting fair employment practices across all sectors. By addressing these critical issues, Saudi Arabia aims to create a more inclusive and equitable labor market for all citizens and residents.
Tightening Enforcement on Existing Labor Regulations
The proposed amendments don’t stop at new categories; they also tighten enforcement on existing labor regulations. A clear example is the explicit inclusion of maternity leave violations, where failure to grant leave to eligible women now carries a SAR1,000 fine. This significant increase in penalties reflects the government’s commitment to supporting working mothers and promoting greater flexibility in the labor market.
Recruitment Firms and Labor Service Providers Under Greater Scrutiny
Recruitment firms and labor service providers are also under greater scrutiny. Violations such as failing to register worker information in ministry-approved systems, or not informing workers of their contractual rights, will now face a layered system of consequences. These include:
- Monetary fines.
- Official warnings.
- License suspension for up to six months in some cases and up to 12 months in others.
- Permanent license revocation for serious or repeat offenses.
These updates ensure accountability for recruitment practices and help protect the dignity and rights of workers from the outset. By addressing these critical issues, Saudi Arabia aims to promote greater transparency and fairness in labor inspections and dispute resolution.
Supporting Flexibility, Enhancing Accountability
The revised law reflects Saudi Arabia’s efforts to modernize its labor system in response to emerging work models, including part-time and flexible roles. By clearly outlining violations and setting predefined penalties, the government hopes to create greater predictability and fairness in labor inspections and dispute resolution.
Clear definitions reduce subjective judgment by inspectors and provide employers with consistent standards to follow. This significant shift in labor regulation aims to promote a more inclusive and equitable labor market for all citizens and residents.
Consultation Phase: Public Input Encouraged
The proposed amendments are currently in the consultation phase, with the government encouraging the public to provide input via the Istitlaa platform. Once finalised, they will be incorporated into the Labor Law and its Executive Regulations.
By taking this step, Saudi Arabia aims to align its labor practices more closely with international standards, support fair employment practices, and reinforce the country’s vision for a more inclusive and equitable labor market.
Conclusion
The proposed amendments to Saudi Arabia’s Labor Law and its Executive Regulations mark a significant shift in labor regulation, introducing sector-specific enforcement for the first time in the maritime and agricultural industries. By addressing critical issues such as vulnerable worker protection, recruitment practices, and maternity leave, the government aims to promote a more inclusive and equitable labor market for all citizens and residents.
The revised law reflects Saudi Arabia’s efforts to modernize its labor system in response to emerging work models, including part-time and flexible roles. By clearly outlining violations and setting predefined penalties, the government hopes to create greater predictability and fairness in labor inspections and dispute resolution.
The proposed amendments are currently in the consultation phase, with the government encouraging the public to provide input via the Istitlaa platform. Once finalised, they will be incorporated into the Labor Law and its Executive Regulations.
By taking this step, Saudi Arabia aims to align its labor practices more closely with international standards, support fair employment practices, and reinforce the country’s vision for a more inclusive and equitable labor market.