Fines up to SAR 100,000 for Illegal Expat Hiring

Establishments in Saudi Arabia that employ expatriates in breach of residency (iqama) or labor regulations now face administrative fines of up to SAR 100,000 with the amount multiplied by the number of violating workers involved.

The penalties apply to businesses that employ workers whose residency or work status is invalid or not authorized for that establishment, allow their expatriate employees to work freelance or for other employers, or hire workers sponsored by another entity without a proper transfer of sponsorship and work authorization.

For private companies and establishments, the framework combines a fine of up to SAR 100,000 with a ban on recruiting new foreign workers for up to five years. In serious or repeated cases, the responsible manager may face imprisonment of up to one year, with deportation if that manager is an expatriate.

Individual employers, such as households, who allow their workers to work for others or for their own account may be fined up to SAR 100,000, jailed for up to six months, and barred from recruitment for up to five years. Expatriate employers may also be deported in addition to the fine and imprisonment.

Authorities note that anyone who transfers, employs, covers up, harbors, or assists residency or work violators faces imprisonment of up to six months and a fine of up to SAR 100,000, with deportation for expatriate violators. Establishment owners employing violators or workers absent from their jobs can be fined up to SAR 100,000 and deprived of recruitment for five years.

Enforcement also reflects a graduated scale for repeated establishment violations: a first violation carries a SAR 25,000 fine, a one-year recruitment ban, and deportation of the expatriate manager, while a second violation raises the fine to SAR 50,000, extends the recruitment ban to two years, and includes public naming of the establishment. Residents and business owners are advised to verify that all workers hold valid residency and work authorization tied to the correct employer.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving