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HRSD Compliance

Labor Law Violation Penalties 2026

Complete guide to all Saudi Labor Law and HRSD violation fines and penalties

Calculate Compliance Risk

Important Warning

78% of Saudi companies fail their first HRSD inspection. Fines can reach millions of SAR and may lead to business closure. Use a compliant HR system to avoid violations.

Fines and Penalties Table

ViolationFineAdditional Penalties
Not documenting contract in QiwaSAR 5,000per contractper contract
Delayed salary paymentSAR 10,000Service suspension on repeatService suspension on repeat
Non-compliance with SaudizationSAR 20,000per workerper worker
Employing without permitsSAR 100,000Deportation + recruitment banDeportation + recruitment ban
Unsafe work environmentSAR 25,000Temporary closureTemporary closure
Employment discriminationSAR 50,000Victim compensationVictim compensation
Not paying End of ServiceSAR 15,000Pay dues + compensationPay dues + compensation
Working hours violationSAR 10,000Pay overtimePay overtime
Not granting entitled leaveSAR 5,000per employeeper employee
Commercial concealmentSAR 1,000,000Prison + deportation + closurePrison + deportation + closure

* Fines may double for repeat offenses. Source: Ministry of Human Resources and Social Development.

How to Avoid Penalties?

Automatic Compliance

  • Auto-document contracts in Qiwa
  • Iqama renewal alerts
  • Saudization rate monitoring
  • WPS salary payments

Reports & Alerts

  • Monthly compliance report
  • Potential violation alerts
  • Compliance dashboard
  • Labor law updates

Protect Your Company from Fines

AqlHR monitors your compliance automatically and alerts you before any violation. Save hundreds of thousands of SAR.