Stringent punitive measures against those firms and employers who hire workers without having a job for them

The public was asked to weigh in on the Ministry of Human Resources and Social Development's intentions to modify the Labour Law in order to impose harsh penalties on companies and employers that recruit people without having a job for them. The proposed draft law states that violators will face steep fines of between SR200,000 and SR $1 million. The goal of this is to make unlawful activities that have a detrimental impact on the labour market illegal.

Through the Istitlaa, a centralised electronic public consultation platform connected to the National Competitiveness Centre, the ministry solicited feedback from interested parties regarding the amendment. Istitlaa is used to gather public, official, and private sector opinions on proposed laws and regulations prior to their approval and implementation. Participants in the public survey are required to provide their thoughts and comments on the Labour Law modification by April 20, 2024.

The practice of hiring domestic helpers and professionals without having any work for them to accomplish for the employer is made illegal by the proposed amendment. Additionally, the amendment makes it illegal to promote labour services in violation of residence or labour laws, as well as to engage in brokering to supply labour services through one or more people, citizens or residents. 

As per the amendment, it is impermissible for any individual to hire several workers without providing them with employment. The offender who hires multiple workers without providing employment faces a fine of no less than SR200,000 and no more than SR1 million. The offending expatriate will also be deported. Anyone found to be offering labour services in contravention of the Labour Law's requirements or advertising positions without a licence may face a punishment of at least SR200,000 and up to SR500,000. If the offender is an expat, they may also face deportation.

The repercussions of the offence are taken into consideration while determining the fine's amount. According to the law's proposed provision, the Ministry of Human Resources and Social Development will be in charge of keeping an eye out for infractions and reporting them to the Public Prosecution so that they can consider whether to file a criminal prosecution in the appropriate court.