Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q4 2021 Global Guide Quarterly updates   Download full Q4 2021 Global Guide Quarterly

Penalties for Dealing with Illegal Expatriates

New Legislation Enacted

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Counsel – Clyde & Co.

Ministerial Decision No. 3329/1435 has been updated to provide that in instances where an individual employer permits their employees to work for third parties or for their own account they shall face a maximum penalty for a third violation, of SR100,000, deportation (where an expatriate), six months custodial sentence, and a recruitment ban of five years.

New Table of Fines and Penalties

New Legislation Enacted

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Counsel – Clyde & Co.

The Ministry of Human Resources and Social Development (MHRSD) on December 17, 2021, published an amended set of penalties for noncompliance with the Saudi employment regulations by employers, with immediate effect. The new law provides a revised list of penalties for violations of various employment regulations, including sanctions for noncompliance with Saudization requirements, work authorisation obligations, and payment of wages. It also provides a separate list of sanctions applicable to recruitment companies.

The level of penalties depends on the employer’s headcount and, in some instances, the penalties are multiplied by the number of workers affected by the employer’s non-compliance. Employers must settle (or appeal) all penalties within 60 days of being served by the MHRSD, and failure to do so will result in the suspension of all services provided by MHRSD.

Saudization Requirements for Select Professions

New Regulation or Official Guidance

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Counsel – Clyde & Co.

The Ministry of Human Resources and Social Development (MHRSD) has issued several decisions relating to requirements under the Saudi Nationalization Scheme (Nitaqat or Saudization) for select professions in marketing, healthcare, medical appliances, dentistry, and pharmaceutical sectors. Effective April 11, (i) for dentistry professions, companies with a minimum of three employees are required to employ Saudi nationals and pay a monthly minimum salary of SAR7,000; (ii) pharmaceuticals companies with a minimum of five employees are required to employ Saudi nationals and pay a monthly minimum salary of SAR7,000 for specialists and SAR 5,000 for technicians; (iii) healthcare companies are required to meet a Saudization quota of 60% and pay a monthly minimum salary of SAR7,000 for specialists and SAR 5,000 for technicians; and (iv) companies with employees working in professions related to sales, promotion, and introduction of medical appliances, engineering and technical professions must pay their Saudi national employees a monthly minimum salary of SAR7,000 for specialists and SAR 5,000 for technicians and other diploma holders.

Effective May 8, 2022, (i) for marketing, companies with a minimum of five employees are required to meet a minimum rate of 30% Saudization requirements within their marketing roles and pay a monthly minimum salary of SAR5,000; and (ii) positions for secretarial, translation, storekeeping, and data entry jobs are restricted only to Saudi nationals, employees must be paid a minimum salary of SAR 5,000 per month.

COVID-19 Update

Important Action by Regulatory Agency

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Counsel – Clyde & Co.

The KSA Ministry of Interior announced on October 17, 2021, that wearing masks is no longer mandatory in open places. Furthermore, those who have received both doses of the COVID-19 vaccine are not subject to social distancing measures at social gatherings, public places, public transport, restaurants, and cinemas. These spaces will be permitted to operate at full capacity.