Article 73 of the Saudi Labor Law
المادة 73 من نظام العمل · الباب الخامس: علاقات العمل
Article 73 requires the employer to enter fines imposed on workers in a special register, and bars disposing of them except for the benefit of the establishment's workers, through the workers' committee or with the Ministry's approval.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
يجب على صاحب العمل أن يكتب الغرامات التي يوقعها على العامل في سجل خاص، مع بيان اسم العامل ومقدار أجره ومقدار الغرامة وسبب توقيعها وتاريخ ذلك. ولا يجوز التصرف في الغرامات إلا فيما يعود بالنفع على عمال المنشأة، على أن يكون التصرف بهذه الغرامات من قبل اللجنة العمالية في المنشأة، وفي حالة عدم وجود لجنة يكون التصرف في الغرامات بموافقة الوزارة.
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 73 explained in plain English
Article 73 of the Labor Law regulates what happens after a financial fine is imposed on a worker; it does not speak of when a fine is imposed, but of how it is documented and where its proceeds go. The article sets two basic obligations on the employer:
- Recording in a special register: the employer must write down every fine it imposes on a worker in a register set aside for that purpose, and this register must contain 5 specified particulars: the worker's name, the amount of their wage, the amount of the fine, the reason it was imposed, and the date it was imposed.
- Restricting the disposal of the fines' proceeds: the employer may not add fines to its revenues or spend them as it likes; they may not be disposed of except in what benefits the establishment's workers.
The article also specifies the body that holds the decision on disposal of these funds:
- If the establishment has a workers' committee, it is the one that disposes of the fines.
- If there is no workers' committee, they may not be disposed of except with the Ministry's approval.
The rationale for this rule is that a fine is a disciplinary tool and not a source of income for the employer; the register prevents manipulation and allows each fine and its justification to be verified, and it also preserves for the worker written evidence on which they can rely if they wish to challenge the sanction under Article 72, which requires notifying them in writing of the sanction decision and gives them 30 days to submit a grievance to the employer, followed by the right to object before the labor courts.
What can the worker do? They are entitled to have the fine imposed on them recorded with the particulars mentioned, and to know that the amount deducted from their wage does not go into the employer's pocket but to what benefits the workers. If it turns out that fines are deducted without being recorded or are spent on anything other than the workers, that is a breach of this article, and it is advisable to consult a labor lawyer to learn the appropriate steps.
Practical example
Noura works as an accountant at a company in Dammam, and in one month her employer imposed a fine on her for repeated lateness. Under Article 73 the company must enter in the fines register Noura's name, the amount of her wage, the amount of the fine, the reason it was imposed (lateness), and the date. When Noura asked what happens to the deducted amount, the human resources department explained that the company may not spend it on its own expenses, and that the establishment's workers' committee meets and decides to spend it on what benefits the workers. If the company had no workers' committee, the amount could be spent only after the Ministry's approval.
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 73 of the Saudi Labor Law
May an employer keep the amounts of fines deducted from workers?
No. Article 73 provides that fines may not be disposed of except in what benefits the establishment's workers, and disposal is through the workers' committee, or with the Ministry's approval if there is no committee.
What particulars must the fines register contain?
The register must contain the worker's name, the amount of their wage, the amount of the fine, the reason it was imposed, and its date.
Who decides how the proceeds of fines are spent in the establishment?
The establishment's workers' committee makes the decision, and if there is no workers' committee, the Ministry's approval must be obtained before these funds are disposed of.
How does a worker submit a grievance against a fine imposed on them?
Under Article 72, the worker is notified of the sanction decision in writing, and may submit a written grievance to the employer within 30 days of the date they were notified; if the grievance is rejected or not decided within 15 days, they may object before the labor courts within 30 days.
Amendment history
Royal Decree No. M/46 — 5/6/1436 AH
Official amendment text (Arabic)
تم تعديل هذه المادة بموجب المرسوم الملكي رقم ( م/ 46) وتاريخ 5 / 6 / 1436 هـ ؛ لتكون بالنص الآتي:
"يجب على صاحب العمل أن يكتب الغرامات التي يوقعها على العامل في سجل خاص، مع بيان اسم العامل ومقدار أجره ومقدار الغرامة وسبب توقيعها وتاريخ ذلك. ولا يجوز التصرف في الغرامات إلا فيما يعود بالنفع على عمال المنشأة، على أن يكون التصرف بهذه الغرامات من قبل اللجنة العمالية في المنشأة، وفي حالة عدم وجود لجنة يكون التصرف في الغرامات بموافقة الوزارة".
Original text before the amendments (Arabic)
يجب كتابة الغرامات التي توقع على العمال في سجل خاص مع بيان اسم العامل ومقدار أجره ومقدار الغرامة وسبب توقيعها وتاريخ ذلك، ولا يجوز التصرف في الغرامات إلا فيما يعود بالنفع على عمال المنشأة بعد أخذ موافقة الوزارة على ذلك.
More articles on Disciplinary Penalties
- Article 12Amended (1436 AH)
Article 12 directs the Ministry to prepare one or more unified models of the work organization regulation covering benefits, violations and disciplinary penalties, and to set controls and mechanisms for approving these regulations.
1 - تضع الوزارة نموذجاً موحداً - أو أكثر - للائحة تنظيم العمل، على أن يكون شاملاً لقواعد تنظيم العمل وما يتصل به من أحكام، بما في ذلك الأحكام المتعلقة بالميزات
- Article 13Amended (1436 AH)
Article 13 requires every employer to prepare a work organization regulation according to the Ministry's model, allows adding provisions that do not conflict with the law, and requires the regulation and its amendments to be announced to workers.
1 - يلتزم كل صاحب عمل بإعداد لائحة لتنظيم العمل في منشأته وفق النموذج المعد من الوزارة، ويجوز للوزير الاستثناء من ذلك. 2 - يجوز لصاحب العمل تضمين اللائحة شروطاً
- Article 63
Article 63 requires the employer and anyone with authority over workers to prevent any substance forbidden by Sharia from entering the workplace, and penalizes anyone found with it or using it.
على صاحب العمل أو وكيله أو أي شخص له سلطة على العمال، منع دخول أي مادة محرمة شرعًا إلى أماكن العمل، ويطبق بحق من وجدت لديه أو من تعاطاها العقوبات المقررة في هذا
- Article 65
Article 65 sets six basic duties of the worker: performing the work skillfully per lawful instructions, caring for the employer's tools, good conduct, helping in emergencies, undergoing medical examination, and keeping the establishment's secrets.
بالإضافة إلى الواجبات المنصوص عليها في هذا النظام واللوائح والقرارات الصادرة تطبيقًا له، يجب على العامل: 1 - أن ينجز العمل وفقًا لأصول المهنة ووفق تعليمات صاحب
- Article 66
Article 66 sets out exhaustively the six disciplinary sanctions an employer may impose on a worker, from a warning to dismissal in the cases set in the Law.
الجزاءات التأديبية التي يجوز لصاحب العمل توقيعها على العامل: 1 - الإنذار. 2 - الغرامة. 3 - الحرمان من العلاوة أو تأجيلها لمدة لا تزيد على سنة متى كانت مقررة من
- Article 67
Article 67 prohibits an employer from imposing any disciplinary sanction on a worker unless it is stated in the Labor Law or in the establishment's work organization regulations.
لا يجوز لصاحب العمل أن يوقع على العامل جزاءً غير وارد في هذا النظام أو في لائحة تنظيم العمل.
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.