Saudi Laws Update

Rectifying the business status - Saudi Ministry launches corrective period for anti-concealment Law until August 23, 2021 Businesses in the Kingdom currently engaged in "commercial concealment" are given six options to correct their status until August 23. According to the Regulation for Correction of Conditions for Violators of the Anti-Concealment Law, the Ministry of Commerce provides an opportunity for Saudis and non-Saudis who are practitioners of economic activities to rectify their conditions. It is possible to apply to correct the status until August 23, 2021. According to the regulations, those whose situation is corrected shall be exempted from the penalties prescribed in the anti-concealment Law and other fines resulting from the crime and its proceeds are subject to correction and paying the income tax retroactively. Violations of the Anti-Concealment Law (Royal Decree No. M/4 dated 1/1/1442H (corresponding to 20/8/2020), and its implementing regulations; Mini...

Erring employers face up to SR50,000 in fines, closure of firms July 08, 2021 Saudi Gazette report RIYADH — The Ministry of Human Resources and Social Development announced its intention to impose penalties on employers in the event of their violations of the Labor Law and its executive regulations as well as ministerial decisions. It stated that the penalty does not exceed half of the maximum limit for the two penalties contained in subparagraphs A and B of Article 229 of the Labor Law. There are also violations that exceed half of the maximum limit. Establishments with less than or more than 10 workers will be penalized with a fine of SR50,000 in the event of submitting incorrect information to the ministry, with the motive of gaining undue benefits and services. Establishments with less than or more than 10 workers will be penalized with a fine of SR20,000 in the event of committing any of the following violations: selling or brokering work visas; employing a non-Saudi worker withou...

Maximum limit for Indian, Bangladeshi workers in private firms set at 40% each July 07, 2021 Okaz/Saudi Gazette RIYADH — The Qiwa online portal of the Ministry of Human Resources and Social Development has codified the percentage of workers of some nationalities who are entitled to work in private sector establishments, Okaz/Saudi Gazette has learned from well-informed sources. It has specified that the maximum limit of Indian workers allowed to work in a firm is 40 percent of the total workers. The same is the percentage of Bangladeshi workers while the maximum limit of Yemeni workers has been set at 25. The portal has notified some establishments about the percent system through emails, a copy of which was obtained by Okaz/Saudi Gazette. In the email, it has conveyed to the establishments that the percentage of workers of Indian nationality cannot exceed 40 percent and that the same percentage is also applicable to Bangladeshi workers. As for the Yemeni and Ethiopian nationals, the u...