Penalty for employing workers for someone other than the employer: a fine of 100,000 and imprisonment
The Saudi General Directorate of Public Security has reiterated the strict penalties for violations of residency and labor laws, particularly for employers who allow their employees to work for others or for their own account. This warning comes as part of ongoing security and inspection campaigns to regulate the labor market and ensure compliance with the country's regulations.
Security authorities clarified that negligence in implementing these regulations exposes employers to severe penalties aimed at deterring such practices that harm the national economy and social security. The penalties imposed on violators include the following:
- Financial penalty: up to 100,000 Saudi Riyals.
- Imprisonment penalty: up to six months.
- Ban on recruitment: Preventing the violator from recruiting workers for a period of up to five years.
The context of labor market regulation and Vision 2030
These decisive measures fall within the broader context of the Kingdom's efforts to regulate the labor market and combat what is known as "unregulated labor" or phenomena related to commercial concealment. The Ministry of Interior, in cooperation with the Ministry of Human Resources and Social Development, is working on the "A Nation Without Violators" campaign, a comprehensive national initiative aimed at tracking down and apprehending violators of residency, labor, and border security regulations. These campaigns are an integral part of the objectives of the Kingdom's Vision 2030, which seeks to create a regulated, competitive, and attractive work environment, free from the economic distortions caused by undocumented labor.
Security and economic importance
This emphasis is of paramount importance on both the local and economic levels. From a security perspective, regulating workers with their actual employers contributes to reducing crime rates and facilitating the identification of workers' locations, thus enhancing security and stability. Economically, enabling workers to work independently or for others without proper documentation leads to the growth of the "shadow economy," an increase in illicit financial transfers, and unfair competition for legitimate businesses, harming entrepreneurs and small and medium-sized enterprises (SMEs) that adhere to regulations.
Call for reporting and community cooperation
In closing, the Public Security Directorate called upon all citizens and residents to cooperate with security authorities and not to conceal such violations, emphasizing that security is everyone's responsibility. The Directorate urged reporting any violations of residency, labor, and border security regulations by calling the official numbers designated for this purpose: (911) in the Makkah, Riyadh, and Eastern regions, and (999) in the rest of the Kingdom. It affirmed that all reports are treated with the utmost confidentiality.
