Penalties

What is the penalty for someone who unlawfully stops operations of public utilities like water, electricity, communications, etc.?

According to Article 190, the penalty for any individual who unlawfully and intentionally stops operations or obstructs any public utilities is imprisonment for a term between 1 month to 1 year or a fine between 1,000 to 3,000 SAR, or both. 

Public utilities covered include those related to electricity, water, communications, and principal foodstuff distribution. The same imprisonment and fine penalties also apply to any concessionaire or contractor operating these public utilities if they stop operations without a legitimate justification.

What is the penalty for employers, managers, and employees who unlawfully stop work to pressure authorities?

As stated in Article 191, any employer, manager, or employee who unlawfully stops work in an establishment or obstructs its operations intending to obtain concessions or resist regulations, orders, or administrative decisions shall be punished. The penalty is imprisonment for up to 6 months and/or a fine between 500-3,000 SAR. Additionally, the business can be ordered closed or construction activities fully suspended until the situation is resolved.

What is the penalty for violating rules on bringing in foreign workers?

According to Article 196, any person who brings foreign workers into the Kingdom in numbers exceeding those permitted under the rules, regulations and decisions shall be punished with a fine between 2,000-5,000 SAR for every extra worker brought in illegally. The fine amount doubles for repeat violations of the same offence.

What is the penalty for violating wage provisions in Article 116?

Under Article 199, the penalty for violating Article 116, which covers rules regarding payment of wages in the official currency during working hours at the workplace, is a fine between 300-500 SAR.

What additional penalties can be imposed for violation of the health and safety chapter (Chapter VIII)?

As per Article 202, violators of any provision in the health and safety chapter (Chapter VIII) shall be punished according to the basic penalty defined in each section, which ranges from fines to imprisonment. Additionally, violators may be ordered to pay any compensation required as a result of damages caused by health and safety violations to employees or the workplace.

What is the penalty for refusing to comply with arbitration decisions from commissions?

According to Article 205, the penalty for refusal to comply with legally binding decisions, instructions or orders issued by dispute resolution commissions is
1) Double the fine originally imposed
2) Imprisonment up to 3 months
‍3) A fine between 500-1000 SAR.

Where does the money from fines for violations go?

As stated in Article 207, all fines collected for violations of provisions of the Labor Law shall go into a special account within the Workmen's Social Insurance Fund. This money shall be used to improve work conditions and standards in the Kingdom.

Under what conditions can a worker's salary be lowered?

Under Article 208, an employer may only reduce a worker's wage in cases that are explicitly permitted under the Labor Law itself or related decisions. A worker's wage cannot be reduced for any other reason without legal justification.