🔨 Only these penalties are allowed — nothing else
"The disciplinary penalties an employer may impose on a worker: 1- Warning. 2- Fine. 3- Deprivation of, or delay of, a bonus for a period not exceeding one year, where the bonus is set by the employer. 4- Delay of promotion for a period not exceeding one year, where promotion is set by the employer. 5- Suspension from work with loss of wages. 6- Dismissal from work in the cases prescribed by the Law."
"An employer may not impose on a worker a penalty not provided for in this Law or in the work organization regulation."
Any penalty that does not fall within the six types above — no matter what your contract or your employer's internal regulation says — is unlawful and may not be imposed on you.
💰 Limits on the fine for a single violation
"No disciplinary penalty may be imposed on a worker for an act committed outside the workplace unless connected to the work, the employer, or the responsible manager. Nor may a fine exceeding five days' wages be imposed for a single violation, nor more than one penalty for the same violation, nor may deductions from wages for fines exceed five days' wages in a single month, nor may the period of suspension without pay exceed five days in a month."
Fine for a single violation: 5 days' wages maximum. Only one penalty per violation (no stacking). Total monthly deduction from fines: 5 days' wages maximum. Unpaid suspension: 5 days per month maximum.
📝 The required procedure before any penalty
"No disciplinary penalty may be imposed on a worker except after notifying them in writing of the charge, interrogating them, hearing their defense, and recording this in a report kept in their personal file. The interrogation may be oral for minor violations where the penalty does not exceed a warning or a fine of no more than one day's wage, provided this is recorded in the report."
📬 Your right to object within 15 days
"The worker must be notified in writing of the decision to impose a penalty; if they refuse to receive it or are absent, the notice is sent by registered letter to the address in their file. The worker has the right to object to the penalty decision within fifteen days — excluding official holidays — from the date of being notified of the final decision imposing the penalty. The objection is submitted to the Labor Disputes Settlement Authority, which must issue its decision within thirty days of the objection being registered."
The article text refers to the "Labor Disputes Settlement Authority" — the old name for this body before a royal order (No. A/2, dated 22/1/1434H) abolished Chapter 14 of the Labor Law that had governed it. Today, objections of this kind are heard by the Labor Court, and the same 15-day right to object still applies.
⏳ Two important time limits on the employer
"A worker may not be accused of a violation more than thirty days after its discovery, nor may a disciplinary penalty be imposed more than thirty days after the investigation into the violation is concluded and the violation is established against the worker."
"The penalty may not be increased for a repeated violation if one hundred and eighty days have passed since the worker was notified of the penalty imposed for the earlier violation."
📒 The fines register: where does the money go?
"Fines imposed on workers must be recorded in a special register stating the worker's name, wage, the fine amount, the reason for it, and the date. Fines may not be spent except for the benefit of the establishment's workers, and only after obtaining the Ministry's approval."
- Labor Law — Article 66: allowed disciplinary penalties
- Labor Law — Article 67: ban on any penalty not provided for
- Labor Law — Article 68: 180-day limit on increasing a penalty
- Labor Law — Article 69: 30-day limit to accuse and investigate
- Labor Law — Article 70: monthly fine and suspension caps
- Labor Law — Article 71: required investigation procedure before a penalty
- Labor Law — Article 72: written notice and 15-day right to object
- Labor Law — Article 73: the fines register and how funds may be used