Regulations and penalties for employees in Saudi Arabia: Legal guidelines

One of the most important objectives of the regulations for penalties and sanctions for employees in Saudi Arabia is to ensure that the relationship between the worker and the employer is not affected, and consequently, that the work process is not negatively affected. Therefore, the regulations have established a set of controls that govern the imposition of penalties and sanctions on the worker in the event of his violation of the laws and provisions stipulated in the Labor Law.

It's natural that you're asking about the most important disciplinary penalties in the Saudi Labor Law, the laws governing them, and the limits of an employer's authority to impose disciplinary penalties on employees. In this article, we'll answer all your questions about the regulations and penalties for employees, so keep reading...

Abdulaziz bin Yasser Al-Anzi Law Firm

Disciplinary penalties in the Saudi Labor Law

The Labor Law in the Kingdom of Saudi Arabia did not leave the matter of determining and assessing disciplinary penalties to the employer’s desire or personal discretion, in order to prevent any abuse or violation of the worker’s rights. Rather, the system established a clear legal framework represented by the regulations of penalties and sanctions for employees in Saudi Arabia, which precisely define the limits of the disciplinary authority that the employer possesses. It also clarifies in detail the types of violations that warrant the imposition of appropriate penalties, and ensures the existence of specific standards and controls that govern the disciplinary process, prevent any potential transgressions by the employer, and at the same time guarantee and protect the worker’s rights.

One of the most important articles that regulates the issue of disciplinary penalties that an employer may take against a worker when he commits a violation is "Article 66 of the Saudi Labor Law," which clearly defines the types of penalties that an employer is entitled to impose. The following is a presentation and explanation of these penalties as stated in the article:

1. A formal written warning should be issued to the offending worker, explaining the nature of the violation he committed, and alerting him to the disciplinary consequences that will be taken in the event of a repetition of the same violation.
2. Imposing a financial penalty on the offending worker, taking into account the seriousness and impact of the violation when determining the value of the penalty, and the penalty must be proportionate to the size of the mistake committed.
3. Withholding or delaying the payment of the periodic bonus due to the worker for a period not exceeding one year from the original date of entitlement, based on a decision by the employer.
4. Postponing the employee’s due promotion for a maximum of one year from the date on which he was scheduled to be promoted.
5. Suspending the employee from performing his job duties for a specified period without paying his wages during the suspension period.
6. Terminating the employee's employment contract permanently and dismissing him from his job, in cases where the Labor Law permits dismissal. This procedure is considered the most extreme type of disciplinary penalty and is taken in cases of serious violations as defined by the Labor Law.

Article 72 of the Saudi Labor Law also stipulates that the employer must inform the worker of the disciplinary penalty decision taken against him in writing. If the worker refuses to receive the written notification or is absent, the notification shall be sent to him via registered mail to the address recorded in his file with the company.

The worker has the right to object to the penalty decision within 15 days - excluding official holidays - from the date of being notified. The objection is submitted to the Labor Disputes Settlement Authority, which issues its decision within 30 days from the date of registration of the objection with it.

Legal implications of violations on the employee's employment status

The violations committed by the worker affect the factors that negatively affect his job stability, as they expose him to disciplinary measures against him according to the schedule of violations of the Saudi Labor Law. These measures range according to the seriousness of the violation, starting with a written warning and may escalate - as we explained previously - to include salary deduction, postponement of promotion, or deprivation of bonus, up to dismissal from work in the cases stipulated in the Labor Law.

Termination of employment results in the loss of the employee's job, as well as the forfeiture of some or all of their financial entitlements such as bonuses, in accordance with the provisions of the labor law and the internal regulations applicable to the establishment.

The need to conduct an investigation before imposing disciplinary action on an employee

Legally, no employee may be penalized under any of the regulations governing violations and penalties without a formal and documented investigation. When an employee is accused of violating the regulations and laws stipulated in the Saudi Labor Law, due to a breach of professional duties or failure to adhere to the required standards of integrity and accuracy, an investigation must be conducted. This investigation must be in writing and conducted officially by a specialized committee or a person officially authorized to do so. It must include hearing the employee's statements, enabling them to defend themselves and present any evidence they may have. Based on the investigation's findings, an appropriate decision will be made regarding the imposition of the appropriate disciplinary penalty, should the employee be found guilty of the alleged violation. The requirement for an investigation before imposing a penalty aims to ensure fairness and transparency in the workplace and to protect employees' rights from arbitrary and hasty decisions.

Procedures for investigating employee violations according to the Saudi Labor Law

The Saudi Labor Law emphasizes the application of procedures for investigating employee violations in accordance with the Saudi Labor Law, with the aim of achieving justice and fairness between the employer and the employee, and ensuring that violations are dealt with in an organized and fair manner, as follows:

1. The employee should be notified, either in writing or verbally, of the alleged violation, along with an explanation of the evidence.
2. Conduct a formal investigation with the employee, giving him the opportunity to defend himself and present his evidence or witnesses, with a recommendation to document the investigation session.
3. Based on the results of the investigation, the employer shall take the appropriate disciplinary decision, which may range from a warning, a salary deduction, or dismissal in serious cases, while adhering to the regulatory controls.
4. The penalized employee has the right to appeal the decision to the employer or the relevant labor offices to ensure that the decision is reviewed and fair.

These procedures maintain an organized and fair work environment, and contribute to the stability of the professional sector and the enhancement of productivity in accordance with the provisions of the system.

Cases in which a Saudi employee may be dismissed

According to the Disciplinary Regulations for Saudi Employees, a Saudi employee in the private and government sectors may be dismissed - subject to the controls and legal procedures stipulated in the Saudi Labor Law - as follows:

Cases of dismissal of Saudi employees in the private sector

1. An employee's assault on the employer, provided that the assault is serious, whether physical, verbal, or any personal abuse.
2. The worker's failure to perform his duties properly, whether through repeated negligence, deliberate dereliction of duty, or failure to comply with quality standards.
3. If an employee commits a disgraceful act, contrary to public morals or ethical values, which negatively affects the reputation of the establishment.
4. An employee committing an act with the intention of harming the company's interests, such as: disclosing secrets, sabotage, or unfair competition.
5. The worker's frequent or continuous absence without an acceptable excuse.
6. The worker forged his personal identification papers or any official document submitted to the company.

Cases of dismissal of Saudi employees in the government sector

1. Receiving an unacceptable performance rating for three consecutive years, and here it should be noted that there must be clear and public performance evaluation procedures for employees.
2. Failure to implement the transfer decision within 15 days of notifying the employee of the decision without an acceptable excuse, provided that the transfer decision is based on the interest of the work and is in accordance with the regulations and bylaws approved in the Saudi Labor Law.
3. The employee's absence continues for 15 days without an acceptable excuse.
4. Proof of the employee's conviction for a crime involving moral turpitude or dishonesty, provided that the judicial ruling is final before a dismissal decision is made.
5. The death of an employee is a natural cause for the termination of his service in the government sector.

Steps to choosing the best employment lawyer in Saudi Arabia

Did you know that choosing a certified lawyer specializing in labor cases in Saudi Arabia is a crucial step to ensure your case proceeds smoothly and achieves the best possible outcome? This requires careful consideration and following specific steps to ensure you select the right person with the necessary experience and competence. Here are the details of these steps:

Search for accredited law firms in the Kingdom that specialize in labor cases. You can use internet search engines, ask friends and acquaintances, or search the directory of lawyers accredited by the Ministry of Justice, and choose those who have a proven track record in labor cases and positive reviews from previous clients.

Make sure that the lawyer is actually specialized in labor cases and has sufficient experience in dealing with types of cases similar to yours, in accordance with the regulations for penalties and sanctions for employees in Saudi Arabia.

Schedule an initial consultation with your lawyer before signing any agreement. This will allow you to explain the details of your case precisely, understand their assessment of it, and gauge their experience handling similar cases. You can also inquire about their fees and the overall costs of the case. It is crucial that your lawyer communicates effectively, is transparent, and is available to answer your questions and provide regular updates on the legal procedures being followed in your case.

After choosing the right lawyer, you can sign a formal agreement that defines the scope of the lawyer's work, their fees, payment methods, and the rights and obligations of both parties.

If you are facing a labor dispute in Saudi Arabia and seeking justice and the full restoration of your rights, this is where [the following role/initiative] comes in.Abdulaziz bin Yasser Al-Anzi Law FirmYour best option for getting the legal support you deserve.

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