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March 12, 2024 - BY Sultan Alqahtani

Disciplinary Penalties in the Saudi Labor System: Understanding and Implementation

The labor system in the Kingdom of Saudi Arabia is one of the important regulations that govern the relationship between employers and workers, ensuring the rights of each party and specifying the duties and obligations to be followed. Among the most important aspects of this system are the disciplinary penalties that employers can impose on workers in case of non-compliance with instructions or specified work rules.


The permissible disciplinary penalties according to Article 66 of the Saudi Labor system are as follows:


1- Warning:

A warning is the first disciplinary penalty and is given to the worker in cases of non-compliance with instructions or unacceptable behavior within the workplace.


2- Fine:

In cases of minor breaches, the employer has the right to impose a financial fine on the worker as a disciplinary penalty.


3- Deprivation of bonus or its postponement:

The employer may prevent the worker from receiving the annual bonus or postpone it for a period not exceeding one year in cases of non-compliance with rules and instructions.


4- Postponement of promotion:

If promotion is offered to the worker, the employer may postpone it for a period not exceeding one year in case of unacceptable behavior by the worker.


5- Suspension from work with deprivation of wages:

In severe cases where the behavior warrants strict measures, the employer may suspend the worker from work with deprivation of wages during the suspension period.


6- Termination of employment:

In serious cases that cannot be overlooked, the employer has the right to terminate the worker's employment immediately according to the rules and conditions specified in the system.


Practical Application of Disciplinary Penalties:


The application of disciplinary penalties requires the employer to be fair and equal in treating workers and to adhere to the procedures specified in the system. These penalties must be the result of a careful evaluation of the situation, and the worker must be informed of the reasons for imposing the penalty and their right to object.


Therefore, understanding and correctly implementing disciplinary penalties enhances the organization of work relationships and reduces cases of breaches and misconduct within the workplace, benefiting both parties and contributing to the promotion of a positive and organized work environment.