Article 229 bis of the Saudi Labor Law
المادة 229 مكرر من نظام العمل · الباب الخامس عشر: العقوبات
The article imposes a fine of SAR 200,000 to SAR 500,000 on anyone who engages in recruiting Saudis, recruiting foreign workers, or outsourcing without a license from the Ministry.
Text of the added article (Arabic)
This article was added to the law by Royal Decree No. M/44 dated 8/2/1446 AH, in effect from 20/8/1446 AH.
يعاقب بغرامة لا تقل عن (200,000) مائتي ألف ريال ولا تزيد على (500,000) خمسمائة ألف ريال؛ كل من يخالف أحكام الفقرة (1) من المادة (الثلاثين) من هذا النظام، وذلك دون إخلال بما تقضي به المادة (التاسعة والعشرون بعد المائتين) منه
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 229 bis explained in plain English
This article sets a special penalty for one specific violation: breaching paragraph (1) of Article 30 of the Labor Law. That paragraph prohibits any natural or legal person from carrying out any of the following activities unless licensed to do so by the Ministry:
- Recruiting Saudis for employment.
- Recruiting foreign workers.
- Outsourcing.
Anyone who carries out one of these activities without a license is punished with a fine of not less than SAR 200,000 and not more than SAR 500,000. The penalty here therefore has both a minimum and a maximum, unlike the general fine in paragraph (1/a) of Article 229, which does not exceed SAR 100,000 for violating any provision of the Law.
The article states that this penalty applies without prejudice to the provisions of Article 229, meaning that this special penalty does not cancel Article 229. Among the penalties in Article 229 is closing the establishment for a period not exceeding 30 days, or closing it permanently. The article does not explain in detail how the two penalties are combined in a single case; that is a matter for the competent authority.
As for the rules for carrying out these activities and the conditions for licensing, renewal and the licensee's obligations, Article 30 leaves them to the Implementing Regulations.
The amendment history of this article shows Royal Decree No. M/44 dated 8/2/1446 AH.
Anyone who receives a penalty under this article, or who doubts whether their activity needs a license, is advised to consult a lawyer specializing in the Labor Law.
Practical example
An office in Jeddah advertises a service providing Saudi staff to companies for a fee, and recruits foreign workers for its clients, without obtaining a license from the Ministry for these activities. This office is violating paragraph (1) of Article 30 and, under this article, is exposed to a fine of not less than SAR 200,000 and not more than SAR 500,000, without prejudice to Article 229.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Active contributorFrequently asked questions about Article 229 bis of the Saudi Labor Law
What is the fine for recruiting workers or providing staffing without a license under the Labor Law?
The fine is not less than SAR 200,000 and not more than SAR 500,000, without prejudice to Article 229 of the Law.
Which activities require a license from the Ministry under Article 30?
Recruiting Saudis for employment, recruiting foreign workers, and outsourcing. No natural or legal person may carry them out unless licensed by the Ministry.
Does this penalty apply to individuals or only to companies?
Article 30 covers any natural or legal person, and Article 229 bis punishes anyone who violates paragraph (1) of it.
Where can I find the conditions for obtaining the license?
Article 30 leaves it to the Implementing Regulations to set the rules for carrying out these activities and the conditions for granting and renewing the license and the licensee's obligations.
Amendment history
Royal Decree No. M/44 — 8/2/1446 AH
In effect from 20/8/1446 AH
Official amendment text (Arabic)
- اُضيفت هذه المادة بموجب المرسوم الملكي رقم (م/44) وتاريخ 1446/2/8هـ، وتكون بالنص الآتي:
" يعاقب بغرامة لا تقل عن (200,000) مائتي ألف ريال ولا تزيد على (500,000) خمسمائة ألف ريال؛ كل من يخالف أحكام الفقرة (1) من المادة (الثلاثين) من هذا النظام، وذلك دون إخلال بما تقضي به المادة (التاسعة والعشرون بعد المائتين) منه".
Articles this article refers to
- Article 30Amended by M/44
Article 30 requires a license from the Ministry to practice the activity of hiring Saudis, recruiting workers or outsourcing, refers the controls to the Regulations, and assigns the Ministry to propose the fees.
1- لا يجوز لأي شخص طبيعي أو اعتباري أن يمارس نشاط توظيف السعوديين أو نشاط استقدام العمال أو نشاط الإسناد ما لم يكن مرخصاً له بذلك من الوزارة. وتحدد اللائحة ضواب
- Article 229Amended (1436 AH)
Article 229 sets the general penalties for violating the Labor Law, its Regulations and decisions: a fine up to SAR 100,000 or temporary or permanent closure of the establishment, with doubling for repeat offenses and fines multiplied by the number of workers.
1 – مع عدم الإخلال بأي عقوبة أشد ينص عليها نظام آخر، يعاقب كل من يخل بأي حكم من أحكام هذا النظام أو لائحته أو القرارات الصادرة تنفيذا له، بعقوبة أو أكثر من العق
More articles on Penalties and Fines
- Article 39Amended by M/44
Article 39 prevents a worker from working for anyone other than their employer or on their own account, and prevents an employer from employing another's worker, except by following the statutory rules and procedures, and regulates inspection and referral between the two ministries.
لايجوز -بغير اتباع القواعد والإجراءات النظامية المقررة- أن يترك صاحب العمل عامله يعمل لدى الغير أو يعمل لحسابه الخاص، ولايجوز للعامل أن يعمل لدى صاحب عمل آخر أو
- Article 196Amended by M/44
Article 196 sets the six competences of labor inspectors: monitoring implementation of the Law, guiding employers and workers, reporting deficiencies, recording violations, verifying referred violations, and proposing fines.
يختص مفتشو العمل بما يأتي: 1- مراقبة تنفيذ أحكام هذا النظام واللائحة والقرارات الصادرة تنفيذاً له. 2- تزويد أصحاب العمل والعمال بالمعلومات والإرشادات الفنية الت
- Article 229Amended (1436 AH)
Article 229 sets the general penalties for violating the Labor Law, its Regulations and decisions: a fine up to SAR 100,000 or temporary or permanent closure of the establishment, with doubling for repeat offenses and fines multiplied by the number of workers.
1 – مع عدم الإخلال بأي عقوبة أشد ينص عليها نظام آخر، يعاقب كل من يخل بأي حكم من أحكام هذا النظام أو لائحته أو القرارات الصادرة تنفيذا له، بعقوبة أو أكثر من العق
- Article 230Amended by M/44
Article 230 sets the Ministry's power to impose a fine or temporary closure up to half the maximum, refers the more serious violations to the court, and allows grievance and settlement.
1 – للوزارة – بقرار من الوزير أو من ينيبه – إيقاع العقوبتين أو إحداهما المنصوص عليهما في الفقرتين الفرعيتين (أ) و(ب) من الفقرة (1) من المادة (التاسعة والعشرين ب
- Article 231Amended (1436 AH)
The article requires the violator to remove the violation within a period set by the Implementing Regulations, and failure to remove it within that period counts as a new violation.
يلزم مرتكب المخالفة بإزالة المخالفة خلال مهلة تحددها اللائحة، وفي حالة عدم إزالتها تعد مخالفة جديدة.
- Article 232Amended (1436 AH)
Fines under the Labor Law are collected under the procedures for collecting public funds, and the amounts go to the Human Resources Development Fund.
يتم تحصيل الغرامات المقررة بموجب هذا النظام، وفقاً للإجراءات المتبعة في تحصيل الأموال العامة، وتؤول المبالغ إلى صندوق تنمية الموارد البشرية.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.