Disciplinary Action

What Are Disciplinary Actions?

Disciplinary actions are a set of formal decisions or corrective measures taken by an employer to sanction an employee who commits violations or exhibits unacceptable behavior in the workplace. This process involves graduated stages, ranging from a verbal warning to termination of employment, with the aim of promoting discipline and compliance with regulations, striking a balance between employees’ rights and the employer’s interests, and improving job performance while minimizing workplace disruptions.

Disciplinary procedures in the Kingdom of Saudi Arabia are based on the Labor Law, its implementing regulations, and other approved laws and regulations, which ensure clarity regarding violations and the corresponding penalties, and guarantee the employee’s right to defend themselves during investigations.

What are the reasons for taking disciplinary action against an employee?

Certain behaviors prompt a company’s human resources department to take disciplinary action against employees who commit such violations, as they disrupt workflow or violate the organization’s policies. This requires correcting or regulating behavior to ensure continued optimal performance. These reasons vary and include the following:

• Employee Misconduct: This includes behavior ranging from minor violations—such as failing to follow a supervisor’s instructions or smoking in prohibited areas—to serious offenses warranting immediate dismissal, such as theft or intentional damage to company property. These measures aim to maintain a safe and disciplined work environment.
• Absence from work without a valid excuse: Unexcused absences hinder workflow, especially if they are frequent and negatively impact the productivity of the entire team. Therefore, disciplinary measures are taken to ensure employees adhere to the attendance policy.
• Chronic tardiness: Repeatedly arriving late for official work hours reflects a lack of commitment and affects team morale, making it necessary to intervene to ensure respect for time and discipline.
• Violation of company policies: This includes violations such as the inappropriate use of resources, failure to comply with the dress code, or violations of occupational health and safety rules. These measures aim to reinforce compliance with regulations and ensure the proper use of available resources.
• Poor job performance: When an employee fails to meet required standards despite being provided with the necessary support, disciplinary measures are used as a means to motivate the employee or to evaluate the feasibility of their continued employment.
• Abusive Behavior Toward Others: This includes bullying, discrimination, or inappropriate conduct, which are among the most serious behaviors affecting the work environment. Dealing firmly with such behaviors aims to protect employees and maintain a positive work environment.
• Disclosure of Confidential Information: The confidentiality of information is vital to any organization; therefore, any leak of sensitive information or unauthorized use of data must be met with strict disciplinary action against the employee responsible.
• Behaviors That Harm the Organization’s Reputation: Any action, whether inside or outside the workplace, that negatively impacts the company’s image requires swift intervention to avoid long-term repercussions.

The Saudi Labor Law regulations list a range of violations that warrant disciplinary action, specifying the penalty for each recurrence of the behavior. Additionally, the Civil Service Disciplinary Code governs disciplinary procedures in government jobs in Saudi Arabia, outlining work regulations that help protect the civil service and ensure the smooth operation of work.

What is the importance of disciplinary procedures for an organization’s success?

Effective and fair disciplinary measures for employees play a crucial role in the success of organizations, ensuring their continuity and helping them achieve their goals in a consistent and professional manner, through:

• Ensuring discipline and compliance: Disciplinary procedures help create an orderly work environment where employees adhere to the rules, thereby enhancing productivity and reducing chaos.
• Promoting fairness and equality: The application of rules to everyone without discrimination boosts morale and builds employees’ trust in management.
• Reducing violations: Imposing appropriate penalties prevents the recurrence of mistakes and guides employee behavior toward compliance.
• Protecting the organization’s interests: It minimizes the damage caused by misconduct such as leaks or absenteeism.
• Improving performance: Clarifying the consequences of misconduct motivates employees to work more efficiently and increases job satisfaction.
• Preserving the organization’s reputation: Demonstrating the company’s commitment to values and professionalism attracts customers and talent and fosters a safe work environment that addresses behaviors that threaten the safety of employees or customers.
• Professional development: It provides an opportunity to guide employees and improve their performance rather than focusing solely on punishment.

What are the types of disciplinary measures for employees under the Saudi Labor Law?

Article 66 of the Saudi Labor Law lists the disciplinary sanctions that an employer may impose on an employee, while Article 67 emphasizes that an employer may not impose on an employee a sanction not provided for in the Law or in the work regulations. These measures are:

• Written warning: A formal letter from the employer to the employee, specifying the nature of the violation and warning the employee that they may face more severe penalties if the violation is repeated or similar violations occur in the future. The warning aims to alert the employee to unacceptable behavior and give them an opportunity to correct their actions without resorting to more severe penalties.
• Financial fine: A deduction from wages or a deduction from the daily wage, ranging from a percentage of one day’s wage to a maximum of five days’ wages, as confirmed by Article 42 of the Executive Regulations of the Labor Law, which states: “A monetary fine is a deduction of a percentage of wages not exceeding a portion of the daily wage, or a deduction ranging from one day’s wage to a maximum of five days’ wages.”
• Denial of promotion or periodic pay increase: This applies if such a promotion or increase is scheduled, and the denial lasts for one year from the date of eligibility.
• Suspension from work without pay: This involves preventing the employee from performing their duties for a specific period, during which they are deprived of their wages; provided that the duration of the suspension does not exceed five days per month.
• Dismissal with severance pay: Termination of the employee’s employment for a valid reason while preserving their right to end-of-service severance pay.
• Dismissal without severance pay: This is the termination of the employment contract without severance pay, notice, or compensation, in any of the cases specified in Article 80 of the Labor Law.

What are the conditions and procedures for disciplinary sanctions?

Disciplinary sanctions are one of the regulatory tools used to ensure compliance and discipline within the workplace. The application of these sanctions is subject to specific conditions and procedures set forth by the Saudi Labor Law to ensure fairness and protect the rights of all parties, including:

• An employer may not impose disciplinary measures on a worker other than those provided for in the Labor Law and its implementing regulations.
• The disciplinary measure must be commensurate with the nature and severity of the violation committed.
• The authority to impose disciplinary measures on an employee rests with the employer or a person authorized by the employer.
• A more severe penalty may be replaced with a less severe one; however, the more severe penalty may not be imposed before the less severe one unless the Labor Law or its implementing regulations expressly provide for the more severe penalty.
• In the event of multiple violations, only the most severe penalty among those prescribed in the Labor Law and its implementing regulations shall be imposed.
• An employee may not be subject to more than one penalty for the same error or violation; no more than five days’ wages may be deducted in a single month; and the duration of suspension from work without pay may not exceed five days in a month. 
• Disciplinary action against an employee must be taken within thirty days of the violation being discovered or proven against the employee following an investigation. 
• The penalty may not be increased in the event of a repeat violation if one hundred eighty days have elapsed since the worker was notified of the penalty imposed for the previous violation.
• The employee shall be notified in writing of the violations attributed to him, questioned, and given the opportunity to present his defense, which shall be recorded in a special report; he may be questioned orally for minor violations punishable by no more than a one-day wage deduction, provided that this is recorded in the report.
• The employee must be notified in writing of the decision to impose the penalty; if the employee refuses to accept the notification or is absent, the notification shall be sent to the employee’s address, and he has the right to file a grievance with the employer or the competent authority within thirty days of receiving the notice, excluding holidays. If his grievance is rejected or no decision is rendered, he may file a complaint with the labor court within thirty days, excluding holidays. 
• The employer must record the fines imposed on the employee in a special register, specifying the employee’s name, wage amount, the amount of the fine, the reason for imposing it, and the date. The fines may only be used for the benefit of the establishment’s employees, and such use must be managed by the establishment’s labor committee; and in the absence of such a committee, the disposition of the fines shall be subject to the Ministry’s approval.