Labor Violations in Saudi Arabia: Know Your Rights and Avoid Legal Risks

Labor violations in Saudi Arabia are among the most important issues for both employees and employers, due to their direct impact on the contractual relationship and job stability.

Whether you are an employee facing delayed salaries or an employer seeking to avoid penalties, it is essential to understand the types of these violations and how to handle them according to the Saudi Labor Law. In this article, we provide precise legal information to help you protect your rights and ensure compliance with the regulations.

Types of Labor Violations in Saudi Arabia

The Saudi Labor Law defines a set of obligations between employees and employers, and any breach of these obligations is considered a legal violation that affects the contractual relationship and may lead to labor disputes or legal actions.

The most prominent types of labor violations in Saudi Arabia include:

1. Delayed Salary Payments
    According to Article 94 of the Saudi Labor Law 2025, delaying an employee’s salary without a legitimate reason is considered a violation. The employee or the Labor Office has the right to file a complaint with the Labor Court to recover the employee’s rights or claim compensation for any unlawful deductions.
2. Unlawful Salary Deductions
    Employers are not allowed to deduct any amount from the employee’s salary without written consent or a legal basis, such as for damages or outstanding loans.
3. Violation of Wage Protection System
    The Wage Protection System requires companies to submit monthly payrolls through the “Madad” platform. Any delay exposes the establishment to a fine of up to SAR 10,000 per month of delay.

Read also: Saudi Labor Law Resignation Guide 2025 – Etqan Law Firm

Saudi Labor Law Implementing Regulations

The Saudi Labor Law and its Implementing Regulations play a fundamental role in organizing the employment relationship between the employee and the employer through several key aspects, summarized as follows:

1. Scope of Application: The law defines its scope to include all employees in the private sector, employees in public and governmental institutions, as well as workers in farms, the agricultural sector, charitable institutions, those under training or rehabilitation contracts not directly employed by the employer, and temporary contract workers. The law also specifies who is exempt from its provisions.
2. Employment Contract: The law organizes the relationship through a written employment contract, in which the employee agrees to work under the employer’s management in exchange for a specified wage. The contract is issued according to an official form from the Ministry of Human Resources and Social Development in two copies one for the employee and one for the employer. Contracts are classified into fixed-term and open-ended.
3. Termination of Employment: The contract may end in several ways, including written agreement between both parties, expiration of the fixed-term, employee resignation, or reaching retirement age. Termination also occurs in cases of force majeure, closure of the establishment, or annulment of the employee’s assigned work.
4. Unfair Dismissal of the Employee: Article 81 specifies cases of unfair dismissal, such as assaulting the employee, the employer failing to fulfill contractual obligations, fraud by the employer, assigning the employee tasks not agreed upon, or serious hazards at the workplace that threaten employee safety.
5. Legitimate Dismissal of the Employee: Article 80 defines legitimate reasons for dismissal, such as assaulting a supervisor or employer, failure to fulfill contractual duties, committing acts violating honesty and integrity, deliberate negligence, document forgery to obtain employment, unauthorized absence, exploiting work for personal interests, disclosing work secrets, or failing probation.
6. Employee Compensation: Regardless of the reason for dismissal, the employee must receive their financial entitlements, including remaining wages, end-of-service benefits, compensation for unused leave, a certificate of experience, and the return of any tools or property provided during employment.
7. Labor Disputes: These are handled by labor courts, and the law sets the claim period at one year from the termination of employment.

Through this framework, the law ensures the protection of both employee and employer rights and establishes clear rules for ending the contractual relationship and resolving disputes fairly and efficiently.

Check out: A Comprehensive Guide: Saudi Labor Law Resignation Benefits

Table of Violations and Penalties Saudi Labor Law

The Ministry of Human Resources and Social Development enforces strict penalties on establishments that violate the terms of employment contracts, whether regarding salaries, work environment, or contractual obligations. Below are the main labor violations and penalties according to the approved system:

Type of Violation	Administrative or Legal Penalty
Delay in Salary Payment	Fine up to double the delayed amount, or according to the Wage Protection System: SAR 10,000 per month.
Delay Continuing for 2 Months	Suspension of some establishment services, such as work permits and visas.
Delay Continuing for 3 Months	Suspension of all establishment services, and the employee may transfer sponsorship after 3 months without employer consent.
Unjustified Deduction from Salary	Legal claims; if convicted, a fine equal to double the deducted or delayed amount.
Other General Violations	Includes occupational safety and unauthorized employment; fines range from SAR 300–5,000 depending on the violation.

Learn about: The Saudi Labor Law: Key Regulations & Employee Rights

Conclusion

If you encounter any labor violations in Saudi Arabia by your employer such as delayed salary payments, unlawful deductions, or breach of contract do not hesitate to seek specialized legal advice from a labor law attorney in Saudi Arabia by contacting Etqan Law Firm via the WhatsApp button at the bottom of the screen.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +966550600204, +966551020060.

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

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