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Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.
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Ministry of Human Resources and Social Development Adopts New List of Fines
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 employer noncompliance with the Saudi employment regulations. The new law provides a revised list of penalties for violations of various employment regulations, including sanctions for noncompliance with Saudization requirements, work authorization 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 noncompliance. Companies are grouped into three categories: (1) 51 workers or more; (2) 11 to 50 workers; and (3) 10 workers or less. 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.
Saudi Arabia Ministerial Decision No. 70273/1440 On the Approval of the Implementing Regulation of the Labor Law
New Legislation Enacted
Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Counsel – Clyde & Co.
Ministerial Decision No. 70273/1440 has been updated, adding a new national holiday under Article 24 of the regulations. Pursuant to this amendment, a new national holiday titled “The Foundation Day” will take place on February 22 of every year. The amendment further provides that in the event that the Foundation Day or the National Day (which takes place on the first day of the Libra astrological sign, pursuant to the Umm alQura calendar) fall on any day off or leave taken, no compensation shall be given to the employee.