Fines Up to SR250,000 for Unlicensed Recruitment

Providing recruitment or labour services without a licence is now classified as a serious violation under the updated labour penalties schedule, carrying fines of between SR200,000 and SR250,000. The Ministry of Human Resources and Social Development (MHRSD) oversees enforcement through ongoing inspection campaigns targeting recruitment offices and companies.

The penalties escalate with repetition. A first offence for unlicensed recruitment is set at SR200,000, rising to SR220,000 for a second offence, and reaching SR250,000 for a third offence or the most severe cases. Unlicensed recruitment of Saudi nationals specifically carries penalties of up to SR200,000, while broader unauthorised recruitment and provision of labour services without a licence are subject to fines of up to SR250,000.

The updated schedule sets a general range of SR500 to SR250,000 for labour-law violations, with the highest bracket reserved for unlicensed recruitment, outsourcing, or the provision of labour services and the employment of workers without the required authorization.

Beyond fines

Financial penalties are not the only consequence. Non-compliant offices may face immediate suspension of activity for serious or persistent violations, revocation of licences when issues are not corrected within specified grace periods, and permanent closure in cases of repeated or serious non-compliance.

Common violations that trigger action include practising recruitment without a licence or outside approved channels, failing to refund amounts owed to clients, delays in resolving complaints, hiring illegal workers, and processing recruitment payments outside the Musaned platform. Non-compliance with hospitality centre standards can also lead to penalties.

For residents and families relying on domestic and labour recruitment services, the message is clear: dealing only with licensed offices and processing payments through official channels helps protect financial dues and ensures faster resolution of complaints. Enforcement is continuous, with quarterly campaigns reported across 2024–2026 resulting in dozens of offices having licences suspended or revoked.

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