SAUDI ARABIA

MHRSD approves new fines schedule, launches initiatives to support private sector

December 10, 2021



RIYADH — The Minister of Human Resources and Social Development, Ahmed Al-Rajhi, issued a decision approving the new schedule of violations, which is aimed to keep pace with the continuous changes and updates in the labor market.

The decision set the value of fines based on the level of the severity of the violation and its impact on the labor market, in order to preserve the rights of workers and provide an attractive work environment. It also gives employers the right to challenge the fine within 60 days from the date of being notified about the decision.

The Ministry also launched a package of initiatives aimed to support the private sector establishments and entrepreneurs, which include: Reducing the value of the fine for the violations that were found during the first visit by 80%, regardless of the number of violations; extending the grace period by requesting the settlement of all violations and raising the reduction percentage to 80% in return for employing a Saudi citizen for each violation; and only providing guidance to emerging establishments and entrepreneurs during the first year of their first activity.

This is in addition to launching the establishment site management service on the Qiwa platform, through which the establishment's commitment to Saudization can be measured and determined. — SG


December 10, 2021
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