Larger companies will be fined
The penalty is calculated by dividing the number of workplaces in the country into three categories. This division is based on the number of employees in the organization. Earlier it was the norm to impose the same fine on everyone irrespective of the age or size of the institution. The ministry has now changed this method. The new decision will increase fines for violations on the part of large corporations. The ministry has come up with a new approach in view of the financial crisis of small firms.
Institutions are divided into three categories
Organizations are divided into three categories based on the number of employees. The division is into large firms, medium firms and small firms. Larger companies with more than 51 employees are considered. Institutions with between 50 and 11 employees will be considered as medium enterprises and institutions with only ten or fewer employees will be considered as small enterprises. Penalties for violations will vary accordingly.
Repeated violations will result in higher fines
Violations of labor protection, safety and healthcare rules previously set by the Saudi Ministry of Human Resources and Social Development have resulted in a fine of 10,000 riyals for the first category, 5,000 riyals for the second category and 2,500 riyals for the third category. Penalties have been increased for companies that do not provide the required medical insurance coverage to employees and their families under the country’s Co-operative Health Act. The first category of violators will be fined 10,000 riyals and the second category 5,000 riyals will be fined 3,000 riyals. If the offense is repeated, the penalty will increase.
300 riyals for late payment of employee salary
Employment of children under the age of 15 carries a fine of 20,000 riyals for the first category and 10,000 riyals for the second and third categories. A fine of 10,000 riyals will be imposed on all categories of companies if they work with a woman who has given birth for the first six weeks after giving birth. Institutions that do not provide employees with the chairs they need to sit during work hours will also have to pay a fine. The first category will get 3,000 riyals and the second category will get 2000 riyals and the third category will get Rs.1000. At the same time, the new law stipulates that if employees’ salaries are delayed, everyone will be fined 300 riyals, regardless of the size of the company.
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