Saudi Arabia warns companies against illegally employing expatriate workers. Learn when fines can reach SAR 100,000, what Article 39 says, and what OFWs should know before working for another employer.
Saudi Arabia illegal employment fine
Saudi Companies Can Face Up to SAR 100,000 Fine for Illegal Employment: What OFWs Need to Know
Saudi Arabia has issued another important compliance warning for companies employing expatriate workers.
On September 21, 2026, Saudi Gazette reported that the Ministry of Interior warned companies and establishments that violations involving the employment of expatriate workers can result in penalties reaching SAR 100,000.
For Filipino workers in Saudi Arabia, the headline deserves attention—but it also needs proper context.
The SAR 100,000 amount is not automatically imposed in every case, and the announcement should not be understood as a completely new Saudi labor law.
The underlying rules against allowing an expatriate worker to work for another employer, work independently, or employing someone registered under another employer already exist under Saudi regulations, including Article 39 of the Saudi Labor Law.
Here is what the latest warning actually means.
Can a Saudi Company Really Be Fined SAR 100,000?
Yes—but “up to SAR 100,000” is the important wording.
The September 21 Saudi Gazette report states that establishments violating the rules may face a maximum fine of SAR 100,000. The report also mentions other possible penalties, including restrictions on recruitment, publication of the establishment's name, imprisonment of the responsible manager in applicable cases, and deportation when the responsible manager is an expatriate.
The official Saudi Ministry of Interior penalty table provides additional context.
Original News Report
Read the original September 21, 2026 Saudi Gazette report here:
Saudi Gazette — Firms hiring illegal workers face SR100,000 fines, warns Interior Ministry
What Does Saudi Labor Law Actually Say?
The legal principle behind the warning is particularly clear in Article 39 of the Saudi Labor Law.
HRSD's current English version states that, unless the prescribed legal rules and procedures are followed:
- an employer may not allow its worker to work for another employer;
- an employer may not allow its worker to work for their own account;
- a worker may not work for another employer;
- a worker may not work independently for their own account; and
- an employer may not simply employ another employer's worker.
HRSD is responsible for inspecting establishments and handling violations under its jurisdiction, while matters within the Ministry of Interior's jurisdiction can be referred accordingly.
This is why the issue is not simply:
“May Iqama naman ako, so puwede akong magtrabaho kahit saan.”
A valid Iqama alone does not automatically authorize an expatriate employee to work for any company they choose.
The employment arrangement must follow the proper legal process.
Ano ang Mga Sitwasyong Dapat Bantayan ng OFW?
For OFWs, this warning becomes particularly relevant during transfers between employers.
1. Nagta-trabaho ka na sa bagong company pero hindi pa completed ang transfer
This is one of the situations workers should be careful about.
Receiving or even accepting a job offer through Qiwa should not automatically be treated as proof that the transfer has already been completed.
HRSD explains that in the transfer process:
New employer sends the offer → worker accepts or rejects → current employer is notified → system verifies the requirements → after approval, records are updated and a new work permit is issued.
So if your Qiwa status still shows something such as pending notice period, pending transfer completion, or another incomplete stage, do not automatically assume you are already officially transferred.
The important question is not merely:
“Na-accept ko na ba ang offer?”
The safer question is:
“Completed na ba officially ang transfer at updated na ba ang employment record ko?”
2. Pinagtatrabaho ka ng company pero registered ka pa sa ibang employer
Article 39 directly addresses this type of arrangement.
An establishment generally cannot simply use a worker who legally belongs to another employer without following the approved procedures.
This means informal arrangements such as:
“Dito ka muna mag-work habang hinihintay natin ang transfer.”
should not automatically be assumed to be legally safe.
The actual Qiwa status and applicable authorization matter.
3. Pinapayagang magtrabaho ang employee para sa ibang company
The Ministry of Interior warning also covers establishments that allow their employees to work for others contrary to the prescribed procedures.
This can affect both sides of the arrangement—the establishment providing the worker and the establishment using the worker.
4. Worker is working independently or “for their own account”
Another category specifically mentioned by Saudi authorities involves expatriate workers working independently without following the required legal framework.
Article 39 states that workers may not work for their own account except according to the prescribed rules and procedures.
The exact consequences depend on the violation and circumstances, so workers should avoid assuming that having an active residency document alone makes independent work automatically legal.
Does Accepting a Qiwa Offer Mean You Can Immediately Start Working?
Not necessarily.
This is one of the most important distinctions for workers transferring employers.
HRSD's current transfer service says the new employer submits the offer through Qiwa, the employee reviews it, the existing employer is notified, and the system verifies the transfer requirements. Only after approval does the process move to updating the worker's records and issuing the new work permit.
PinoyTalks has also discussed this common situation in detail:
Qiwa Job Offer Accepted but Transfer Is Still Pending — What Happens Next?
The practical lesson is simple:
Job offer acceptance and completed employment transfer are not necessarily the same event.
Check the actual status displayed in Qiwa before treating the new employment relationship as fully completed.
Can You Accept a New Qiwa Offer While Your Current Contract Is Active?
Depending on the applicable mobility pathway and the worker's eligibility, an employee may be able to receive and accept a new Qiwa offer even while an existing employment relationship is still active.
However, that does not mean the worker should simply abandon the existing employment relationship and immediately start working elsewhere.
The transfer still has to proceed through the applicable legal process.
HRSD currently describes its “Transfer of services from another employer” service as allowing a resident employee to transfer to a new employer subject to the applicable regulations and conditions.
For a more detailed explanation:
Can You Accept a New Qiwa Job Offer While Your Current Contract Is Still Active?
Is the SAR 100,000 Fine a New Saudi Law?
Based on the official sources reviewed, it is better described as a renewed enforcement warning rather than a brand-new rule created in September 2026.
Saudi authorities have previously publicized penalties involving workers being allowed to work for others or for themselves.
For example, Saudi Public Security published an earlier warning stating that individual employers allowing employees to work for others or independently could face penalties reaching SAR 100,000 in applicable cases.
Saudi Gazette also published another Ministry of Interior warning on September 7, 2026, shortly before the September 21 report.
Therefore, headlines such as:
“Saudi introduces NEW SAR 100,000 fine!”
would give readers the wrong impression.
A more accurate description is:
Saudi authorities are reminding employers and workers that existing residency and employment violations can carry serious penalties, with certain establishment violations reaching SAR 100,000.
Important Reminder for Companies
For establishments, the latest warning reinforces several compliance points:
Do not employ expatriate workers informally just because they are physically available to work.
Do not assume that an employee registered under another establishment can legally begin working immediately.
Do not allow sponsored workers to work elsewhere outside the authorized procedures.
And where an employee is transferring between companies, use the official employment-transfer process and verify that the transfer has reached the correct legal stage.
Saudi Arabia's HRSD currently provides the employer-transfer process electronically through Qiwa.
Official HRSD reference:
HRSD — Transfer of Services from Another Employer
Important Reminder for OFWs
Kabayan, hindi ito dahilan para matakot sa normal at legal na pag-transfer ng employer.
Saudi Arabia has official mechanisms allowing eligible expatriate employees to move between employers.
Ang dapat iwasan ay informal employment arrangement na hindi pa dumaan o hindi pa completed sa required legal process.
Kung may new employer ka:
- Review the Qiwa job offer carefully.
- Check your current contract and transfer status.
- Complete the required transfer procedure.
- Do not assume that “offer accepted” automatically means “transfer completed.”
- Keep screenshots or copies of your Qiwa contract, offer and transfer status.
- If your case has an unusual status, verify it through Qiwa or HRSD before making a decision that could affect your employment record.
You can also browse PinoyTalks' Qiwa discussions and guides here:
PinoyTalks Qiwa Guides and Community Discussions
What About Domestic Workers?
This article is primarily discussing company/private-sector employment and Qiwa-related employer transfers.
Domestic workers have a separate regulatory and service-transfer framework, with many transactions handled through Musaned rather than the standard Qiwa company-employment process.
Do not automatically apply a Qiwa private-sector procedure to a domestic-worker case.
Frequently Asked Questions
Can a company really be fined SAR 100,000 for employing an expatriate illegally?
Yes. Saudi Arabia's Ministry of Interior penalty schedule includes establishment violations that can reach SAR 100,000, depending on the violation stage and circumstances.
Is every violation automatically SAR 100,000?
No. The official table shows escalating penalties, including SAR 25,000, SAR 50,000 and SAR 100,000 for the establishment category discussed above.
Can an OFW work for another company while still registered under the current employer?
Article 39 prohibits a worker from working for another employer—and prohibits an employer from employing another employer's worker—unless the prescribed legal rules and procedures have been followed.
I accepted my Qiwa offer. Can I start working immediately?
Do not rely on the acceptance alone. HRSD's process shows that system verification and completion of the transfer follow the employee's acceptance before records and the work permit are updated. Check the actual Qiwa transfer status.
Is this a new law introduced in September 2026?
The September 21 report is a recent Ministry of Interior warning, but the underlying prohibition and related penalties predate the report. Article 39 and previous Saudi Public Security warnings already addressed working for another employer or independently outside the prescribed procedures.
Bottom Line
The viral “SAR 100,000 fine” headline is based on a real Saudi Ministry of Interior warning—but context matters.
The penalty can reach SAR 100,000 for applicable establishment violations, while the official penalty schedule shows different sanctions depending on the violation stage.
For OFWs, the biggest takeaway is not to confuse having a new employer, accepting a Qiwa offer, or having a valid Iqama with having completed the legal employment-transfer process.
If you are moving to another employer, follow the official Qiwa procedure and confirm that your employment status has been properly updated before treating the transfer as completed.
Sources: Saudi Ministry of Interior, Ministry of Human Resources and Social Development (HRSD), Saudi Labor Law Article 39, and Saudi Gazette report dated September 21, 2026.
Disclaimer: This article provides general information based on publicly available Saudi government sources and does not replace an official determination by HRSD, Qiwa, the Ministry of Interior, or another competent Saudi authority. Individual cases can differ depending on contract status, work permit, residency status, transfer pathway and other regulatory conditions.
PinoyTalks.com — Practical Saudi OFW guides, Qiwa updates and community discussions.
