JEDDAH — Violators of new labor regulations, which came into force on Sunday, will face a maximum fine of SR100,000 and the closure of firm for a maximum period of 30 days or even permanent closure in some violations or if violations are repeated. Penalty can be increased multifold every time the violator repeats a violation of the same kind. If a violation is not cleared within one month from the date of reporting, it will be considered as a repetition permitting an increased penalty. A statement issued by the Ministry of Labor said if the violation is cleared and another violation of the same kind is committed after 24 months from the date the penalty of the first violation, the second violation will not be considered as a repetition. If a firm or employer commits a violation of one kind for several people, this will not be considered a repetition. In this case, fines will be multiplied by the number of people involved in the violation. The ministry will lodge lawsuits against violators before the commissions for settling labor disputes until the labor courts are established. In a session held on March 23, 2015, the Council of Ministers approved 38 new amendments to the labor law articles so as to meet the Saudi labor market requirements. According to the amendments in the new labor law, the minister of labor has been granted powers to issue a circular specifying the violations and penalties. All private employers in the Kingdom will have to formulate an executive bylaw of labor rules for their staff, strictly in compliance with a uniform model of labor rules and regulations that was prepared by the Ministry of Labor. This uniform model is the major highlight of the new Labor Law. The updates in the labor law cover Saudization privileges, provision of training and rehabilitation of Saudi jobseekers, disciplinary procedures, creating appropriate environment for women staff, inspection mechanism and labor contracts. The new law protects workers' rights in the private sector and puts a limit to violations that affect the rights of workers and employers. It also guarantees a better work environment. Private firms must place their workers on a 180-day probation period, and there should be a documentary agreement between the two parties in this regard. The probation period for a second time is allowed only in case of changing the profession at the firm or the worker leaves the firm and returns after six months. In both cases, the worker should be on another probation period of the same duration.
