Social Insurance Law

1. Without prejudice to any harsher penalty provided for in any other law, any person who violates any of the provisions of this Law and the Regulations shall be subject to a fine not exceeding fifty thousand riyals (SAR 50,000). Such fine shall be doubled if the violation is repeated. The violation shall be deemed repeated if it is committed within three years from the date of commission of the previous violation. If an employer commits a violation against multiple contributors, the employer shall be fined for each contributor. 2. An employer established by the Organization to have registered a person not employed thereby shall be subject to a fine in accordance with the provisions of paragraph (1) of this Article, or a fine the amount of which does not exceed double the total value of contributions for the registration period of such person, whichever is greater. If the employer registers multiple persons in violation Social Insurance Law of the provisions of this Law and the Regulations, he shall be fined for each of such persons, provided that the contributions paid for such period are refunded to the employer. 3. If a violation of any of the provisions of this Law or the Regulations results in the payment of undue compensations, the violator shall be subject to a fine in accordance with the provisions of paragraphs (1) or (2) of this Article, or a fine the amount of which does not exceed the value of such compensations, whichever is greater; the violator shall also be compelled to refund the paid compensations. 4. The fines stipulated in this Article may not be imposed for violations after the lapse of five years or more from the date of commission thereof, without prejudice to rectification of the violation and recovery of the amounts unlawfully paid. 5. The Board of Directors shall issue the violation classification schedule. 6. The Organization may reach a settlement with the violator to exempt him from all or part of the fines stipulated in this Article. The Regulations shall specify the provisions necessary for the application of this Article.