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Sun 4 Aug 2019 02:59 PM

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Saudi firms face $800 fine per staff member for delays in salary payment

Private companies will be fined up to $6,665 if they fail to employ at least two women in each work shift

Saudi firms face $800 fine per staff member for delays in salary payment
Private companies will be fined if they pay employees in currencies other than Saudi Arabia’s official currency.

Private companies in Saudi Arabia will be fined SR3,000 ($800) per staff member if they fail to pay their employees’ monthly salaries on time, sources at the Ministry of Labor and Social Development told the Saudi Gazette.

They will also be fined SR10,000 ($2,665) for each employee if they delay the payment of end of service benefits (ESB) by more than two weeks, SR25,000 ($6,667) if they do not employ women, SR15,000 ($4,000) if they fail to employ at least two women in each shift, SR20,000 ($5333) if they do not provide sufficient security guards and SR15,000 ($4,000) if they do not provide emergency exits and rescue equipment such as fire extinguishers.

Moreover, private companies will be fined if they: pay employees in currencies other than Saudi Arabia’s official currency, withhold salaries without legal justification, employ workers without written and documented work contracts, force staff to work for more than eight hours a day, or refuse to provide weekly and annual days off.

In a bid to encourage female empowerment, Saudi Arabia on Thursday said it will end its longstanding guardianship system which rendered adult women legal minors and allowed their “guardians”, such as husbands and fathers, to exercise arbitrary authority over them.

The move will now allow women to travel abroad without approval from a male guardian.