Saudi Arabia announces labour reforms for foreign workers

The Kingdom of Saudi Arabia on Wednesday announced new labour reforms for expatriates and foreign workers in the country.

Saudi Arabia’s Ministry of Human Resources and Social Development's Labor Reform initiative aims to establish the Kingdom as an attractive job market for expats.

Foreigners make up around 10.5 million of Saudi Arabia’s total population of 34.8 million

According to the ministry, the reforms will come into effect from March 14, 2021 and will ensure the work environment in the country becomes more efficient.

"Saudi Arabia has also introduced similar initiatives, including the Wage Protection System, the digital documentation of work contracts, the Labor Education and Awareness Initiative, and the launch of “Wedy” for the settlement of labour dispute," said Arab News.

As per the new reforms, employees will be asked to maintain contracts of workers digitally so that there is less disparity between expatriates and Saudi workers.

The new reforms seek to increase the flexibility, effectiveness, and competitiveness of the labour market and raise its appeal with international practices, and attract top talent, the ministry said.

Job mobility for expats

The reforms intend to allow expatriates the freedom to switch between employers without needing their consent. It also outlines key features of the employment provided conditions of employment, such as fulfilment of the notice period and other conditions are met.

As far as the exit and re-entry visa reforms are concerned, they will allow expatriate workers to travel outside the Kingdom without needing employer's approval after a request has been submitted.

The Final Exit Visa reforms permit the workers to travel outside Saudi Arabia without needing the employer's approval, once their contract has ended. However, the employer will be informed about the worker leaving the country, digitally.

Those who break or do not fulfil the terms of their employment will be liable financially or as per the provisions of their contract. These services will be made available to the people with the smartphone application Absher and (Qiwa) portal of the ministry.

Saudi Arabia intends to improve the efficiency of the private sector and improve the job market in the country so that it can attract the top talent to fulfil the Kingdom's Vision 2030 through the National Transformation Program.