Saudi companies to face new penalties over holiday leave

Employers in Saudi Arabia will be fined SR10,000 if they violate the Labour Law that pertains to the contracted holiday entitlement of their employees, the Saudi Gazette reported today.

The new provision has been included in the revised table of violations and penalties under Article 38 of the law.

The new regulation is part of a raft of new measures under the Labour Law in Saudi, which Minister of Labuor and Social Development Ali Al Ghafees sais have been made in response to the changing nature of the labour market in the kingdom.

For instance, there is also a SR10,000 fine for any employer that allows a non-Saudi employee to work in a profession other than the one specified in his work permit. Employers will be fined SR2,000 for keeping employee’s passport, iqama (residency permit) or medical insurance card without his consent. If the firm fails to meet the requirements of health and occupational safety of its staff, they can face a SR15,000 in fine.

There are also fines for failure to open a file and maintain the accuracy of its contents in the Labour Office, for not having organisational regulations or not complying with them, and for failing to submit the Wage Protection file to the Labour Office on a monthly basis.

Fines must be settled within one month after the issuance of penalty, the failure of which will result in the doubling of fine.