Saudi Arabia cracks down on unlicensed recruitment services with fines up to SR250,000

The Ministry of Human Resources and Social Development in Saudi Arabia has taken action against 10 establishments that were operating illegally, providing recruitment and labor services without the required licenses. These businesses, which included sole proprietorships, general service offices, and web-based services, were found to be violating regulations governing the sector.

The violations were discovered during ongoing inspection campaigns aimed at enforcing compliance, preventing illegal practices, and safeguarding beneficiaries' rights.

The ministry has imposed penalties on the identified establishments, with fines ranging from SR200,000 for a first offense, to SR220,000 for a second, and up to SR250,000 for a third violation. Monitoring efforts involve field inspections, electronic surveillance of advertisements and services on digital platforms, and social media. The ministry also investigates reports and verifies the licenses of service providers.

Musaned, the unified recruitment platform, plays a crucial role in this crackdown. This platform enables beneficiaries to recruit domestic support workers, transfer their services, view workers' CVs, and licensed recruitment providers, and make payments through approved electronic channels. By mandating the linking of payments to documented contracts and applications, Musaned aims to enhance transparency, protect contractual rights, and discourage dealings with unauthorized intermediaries.