Saudi Arabia
Strengthened labour inspection rules
Impact date: 8 March 2025 Labour inspections is one of the functions carried out by labour inspectors, who are appointed by the Minister of Labour to carry out their duties as stipulated under the labour law. A new Regulation regulates and oversee labour inspection activities within the Kingdom, aimed at enhancing workplace compliance and safety.
Employer implications/action needed Labour inspectors can now conduct inspections without warning, especially in urgent or high-risk cases. Employers should ensure that they maintain up-to-date, accessible records (both digital and physical) that are available to be inspected at any time.
Employer risk Companies found to be violating labour rules will receive electronic warnings and must resolve issues within three working days, or face formal reports and penalties. Penalties for non-compliance include financial fines of up to 100,000 SAR and business closure for 30 days, with the possibility of permanent shutdown in severe cases.
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Regulation of recruitment and labour services provision
Impact date: 10 March 2025 A new Ministerial Resolution has been issued which governs recruitment activities and the provision of labour services. These changes, led by the Ministry of Human Resources and Social Development, aim to enhance transparency, efficiency, and compliance in the labour market. They include new licensing requirements and new operational standards including mandatory documentation.
Employer implications/action needed A two-year grace period for existing companies is provided to comply with the updated requirements.
Employer risk Failing to comply with new requirements may lead to penalties and a suspension of Ministry services.
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Regulation of recruitment processes
Impact date: 23 March 2025 The Ministry of Human Resources and Social Development has introduced comprehensive regulations governing how private sector employers advertise job vacancies and conduct job interviews. These rules aim to ensure transparency, fairness, and inclusivity in the hiring process.
The new job advertisement requirements include approved platforms for publishing advertisements and new rules around content. The interview requirements include new rules around notice, interview environment, interview panel and the post interview process.
Employer implications/action needed Employers must ensure that they familiarize and comply with the Regulation when advertising job vacancies and conducting interviews.
Employer risk Penalties for non-compliance include financial fines of up to 5,000 SAR.
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Regulation of maritime employment contracts
Impact date: 8 April 2025 The Ministry of Human Resources and Social Development has issued a Regulation to govern the provision of maritime employment contracts. The Regulation aims to enhance the efficiency of the labour market within this sector, facilitate the mobility of maritime workers between employers, and clearly define the responsibilities and obligations of both employers and companies. Furthermore, it seeks to regulate and ensure adequate working and living conditions aboard vessels engaged in commercial activities. It delineates the rights and obligations of shipowners and seafarers, establishing their respective duties. It also provides a framework for the monitoring and enforcement of its provisions.
Employer implications/action needed Maritime employers must ensure that they familiarize and comply with the Regulation.
Employer risk Failing to comply with the Regulation may lead to penalties and suspension from Ministry services.
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Saudization of therapeutic nutrition professions
Impact date: Phase one (large establishments and the main cities): 17 April 2025. Phase two (all remaining establishments): 17 October 2025 In line with the Ministry of Human Resources and Social Development’s commitment, in partnership with the Ministry of Health, to provide stimulating, productive, and stable job opportunities for citizens across various regions of the Kingdom of Saudi Arabia, and to enhance their participation in the labour market, and with reference to Ministerial Decision No. (51277) dated 13/4/1446 regarding the approval of the updated procedural guide for therapeutic nutrition professions and the implementation of the Saudization percentage for these professions, 80% of the workforce in therapeutic nutrition professions within establishments must be localized.
Employer implications/action needed All applicable establishments must apply the Saudization decision to all professions targeted for the therapeutic nutrition specialty, at a rate of 80%.
Employer risk Failure to comply with the decision can expose applicable companies to penalties including financial fines of up to 100,000 SAR and business closure for 30 days, with the possibility of permanent shutdown in severe cases.
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Saudization of the tourism sector
Impact date: 22 April 2025 An updated procedural guide for the Saudization of the tourism sector in Saudi Arabia outlines a structured plan to localize professions within the private tourism sector by imposing Saudization targets. This initiative is part of the Kingdom’s broader strategy to increase employment opportunities for Saudi nationals and reduce reliance on foreign labor.
Employer implications/action needed A phased implementation timetable applies and the updated guide categorizes roles into three tables with different Saudization requirements. Companies operating in the tourism sector should ensure that they comply with the new requirements once in force.
Employer risk Non-compliance may result in fines, license suspensions, or restrictions on business operations.
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Updating branch data through Qiwa platform
Impact date: 6 May 2025 The Ministry of Human Resources and Social Development has mandated that private sector establishments update their branch location data using the “Establishment Location Management” service on the Qiwa platform. The aim is to maintain an accurate and up-to-date database, enhance transparency, improve operational efficiency, and ensure regulatory compliance.
Employer implications/action needed A phased implementation timetable applies, depending on the number of employees.
Employer risk Failure to comply by the deadlines may result in penalties and restricted access to Qiwa services.
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Saudization of pharmacy professions
Impact date: 27 July 2025 The Ministry of Human Resources and Social Development (HRSD) has issued a decision on implementing the Saudization of pharmacy professions in both the public and private sectors, setting Saudization percentages of: 35% in pharmacies, medical complexes, and clinics; 65% in hospitals; and 55% in other pharmacy activities.
Employer implications/action needed Pharmacy establishments, medical hospitals and pharmaceutical distribution companies must ensure to compliance with the Saudization decision by the impact date.
Employer risk Failing to comply with the decision may lead to penalties and suspension from Ministry services. Penalties for non-compliance include financial fines of up to 100,000 SAR and business closure for 30 days, with the possibility of permanent shutdown in severe cases.
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Saudization of dentists professions
Impact date: Phase 1: 27 July 2025. Phase 2: 27 January 2026 A Ministry of Human Resources and Social Development (MHRSD) decision mandates the Saudization of dentistry professions in private sector establishments on a phased basis.
Employer implications/action needed Medical hospitals and dentist industries must ensure to comply with the Saudization decision by the phased impact dates.
Employer risk Failing to comply with the decision may lead to financial penalties, and suspension from Ministry services. Penalties for non-compliance include financial fines of up to 100,000 SAR and business closure for 30 days, with the possibility of permanent shutdown in severe cases.
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Saudization of technical engineering professions
Impact date: 27 July 2025 A Ministry of Human Resources and Social Development (MHRSD) decision requires establishments employing workers in technical engineering professions to comply with a minimum 30% Saudization rate.
Employer implications/action needed Employers in the engineering fields must review their workforce structures to ensure that at least 30% of employees in technical engineering professions are Saudi nationals by the impact date.
Employer risk Failing to comply with the decision may lead to financial penalties, and suspension from Ministry services. Penalties for non-compliance include financial fines of up to 100,000 SAR and business closure for 30 days, with the possibility of permanent shutdown in severe cases.
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Saudization of accountants professions
Impact date: 27 October 2025 A Ministry of Human Resources and Social Development (MHRSD) decision mandates a 70% Saudization rate for accounting professions, implemented gradually over five years from October 2025.
Employer implications/action needed Employers in the accounting fields must review their workforce structures and work to ensure 70% of employees in accounting professions are Saudi nationals.
Employer risk Failing to comply with the decision may lead to financial penalties, and suspension from Ministry services. Penalties for non-compliance include financial fines of up to 100,000 SAR and business closure for 30 days, with the possibility of permanent shutdown in severe cases.
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