What this guidebook covers
A dealership employs technicians, advisors, sales staff, drivers and car-wash crews, often across several branches. Most fines in MHRSD's Decision 112377 (February 2026) are charged per worker, so one wrong payroll rule or roster habit is multiplied by everyone it touches. Unpaid fines freeze Qiwa and Ajeer: no new visas, transfers or permits.
Part 1 covers the 54 basic requirements every establishment must meet, across contracts, Saudization and permits, health and safety, hours and leave, wages and end of service, and more. Part 2 covers the advanced checklist.
The 10 areas in Part 1
| Area | Fines up to |
|---|---|
| Employment contracts and records | up to SAR 100K |
| Saudization and work permits | up to SAR 100K |
| Occupational health and safety | up to SAR 5K |
| Working hours and leave | up to SAR 3K per worker |
| Wages and end of service | up to SAR 3K per worker |
| Women employment | up to SAR 3K per worker |
| Discipline and conduct | up to SAR 3K per worker |
| Work environment and welfare | up to SAR 5K |
| Training and development | up to SAR 100K |
| Fire and emergency safety | up to SAR 1K |
How to run a Saudi labour law audit (basic requirements), step by step
- Confirm what applies. Count every worker under the establishment's unified number to find its category: A (50+ workers), B (21–49) or C (20 or fewer). The category sets the fine.
- Walk the site, standard by standard. Score each checkpoint Pass, Fail or N/A. N/A only where the standard rules it out, with the reason recorded. Sample worker files, payroll and rosters, and count how many workers each gap affects: many fines are per worker.
- Capture the evidence. A pass counts only with proof captured at the time of the audit: contracts, permits, payroll and wage protection records, rosters and leave records.
- Give every fail an owner and a fix time. Record what you saw and who owns the fix. Each standard in the PDF carries an ideal fix time, counted from audit submission.
- Fix it, then prove it. The site fixes the cause and uploads proof of closure; the auditor checks the proof before closing the finding.
- Re-check at the next audit. Confirm closed findings stay closed, and look for the same fail at your other sites so one gap doesn't repeat across the network.
Who this guidebook is for
- Dealer principals and GMs: see how fast per-worker fines add up
- HR and branch managers: know what inspectors check, and fix it first
- Auditors: sample the right records and count the workers affected
A reference document, not legal advice. Fines and rules change: check the current text with the regulator or your legal adviser before acting.
