His Excellency the Minister of Human Resources and Social Development in the Kingdom of Saudi Arabia, Engineer Ahmed bin Sulaiman Al-Rajhi, issued a ministerial decree amending the schedule of violations and penalties in the Labor Law and its implementing regulations. This decision comes as a strategic step within the Ministry's ongoing efforts to develop the work environment in the Kingdom and enhance its stability and growth in line with the objectives of Saudi Vision 2030.
Background and context of the decision within the framework of Vision 2030
These amendments are part of a package of legislative and regulatory reforms that the Saudi labor market has witnessed since the launch of Vision 2030. This ambitious vision aims to diversify the national economy and reduce dependence on oil, and labor market development is a fundamental pillar for achieving this. Over the past few years, the Ministry has launched major initiatives such as the “Contractual Relationship Improvement Initiative,” which granted expatriate workers greater job mobility, contributing to increased market efficiency and attractiveness to global talent. The current decision complements this progress, focusing on clarifying obligations and penalties to ensure the fair and transparent application of regulations, thus creating a stimulating and well-organized work environment.
The importance of the amendments and their expected impact
The decision aims to support labor market stability by protecting the rights of both workers and employers, and by increasing the attractiveness and flexibility of the work environment. Domestically, these amendments are expected to contribute to increased efficiency and sustainability of businesses by providing a clear regulatory framework that reduces labor disputes. Furthermore, the precise definition of penalties deters violations and ensures compliance with regulations, thereby strengthening market confidence. Regionally and internationally, these steps enhance the Kingdom's reputation as an attractive investment destination, as a stable and transparent legislative environment is a crucial factor for foreign investors. They also position the Kingdom among the leading countries in developing labor systems and protecting workers' rights.
Reclassifying violations to increase clarity
The Ministry explained that the new amendments are in line with the amendments to the Labor Law issued by Royal Decree dated 8/2/1446 AH, and the subsequent amendments to its implementing regulations. The amendments included reclassifying a number of violations into specific categories according to the nature of the activities, thus providing greater clarity for establishments and employees in applying the regulations. The new categories include:
- General violations category for all activities.
- Category of violations related to the operation of mines and quarries.
- Category of violations related to the provisions of the Maritime Employment Contract Regulation.
- Category of violations related to operations and maintenance activities.
- Specialized categories for recruitment activities and provision of labor services (recruitment companies and offices).
- Category of violations related to the regulations for domestic workers and those in similar positions.
- Category of violations pertaining to agricultural workers, private shepherds, and those in similar circumstances.
The ministry invited those interested in learning about the details of the amendments to visit its website, stressing that the new schedule of violations and penalties will be effective from the date of issuance of the ministerial decision.
