Tips for Employers

SR 5,000 Fine for Hiring Expats without a
Work Permit | Saudi Law Update 2023

August 17, 2023


Delta International

saudi laws and rules


Saudi Arabia’s recent policy shift introduces a substantial fine SR5,000 ($1,340), for businesses that hiring expats without a work permit. This fine SR5,000, brings attention to compliance in expatriate employment. This article delves into the implications, rationale, and impacts of this regulation on Saudi businesses.

Exploring the Regulation:

The Ministry of Human Resources and Social Development (MHRSD) has unveiled a compelling directive: any business employing expatriates without proper work permits will face a financial penalty. This rule underscores the significance of aligning with legal work permit requirements and promotes transparent workforce management.

Addressing the Motive:

At the core of this policy is the government’s concern regarding undocumented expatriate workers. These individuals often face exploitation due to their vulnerable legal status. This rule aims to combat the prevalence of unauthorized expatriate employment, promoting fair labor practices and adherence to legal standards.

Aim and Implication:

The primary objective is to discourage businesses from hiring expatriates without valid permits. The penalty isn’t just financial; it highlights the importance of maintaining workforce integrity and protecting workers’ rights, regardless of origin. This policy is pivotal in fostering a regulated and accountable work environment.

Navigating the Landscape:

Saudi businesses are at a pivotal juncture, emphasizing the urgency of compliance with the new rule. Adapting to this directive is crucial for companies operating within the country’s borders. Adhering to this mandate demonstrates a commitment to ethics, accountability, and legal responsibility.


Saudi Arabia’s stride toward progress and development includes this expatriate work permit fine. By aligning with this regulation, businesses uphold the rule of law and prioritize the well-being of all workers. Employers who recruit from Pakistani recruitment agencies for Saudi Arabia, have more advantage to this situation due to it’s a necessity for recruitment agency to provide workers with valid work permits. As the nation moves forward, embracing this policy is essential for ethical and responsible operations in the global business arena.

Tips for Employers: SR 5,000 Fine for Hiring Expats without a Work Permit | Saudi Law Update 2023

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