Saudi Arabia launched on Wednesday the Labor Reform Initiative aimed at improving the contractual relationship between workers and employers.
The Ministry of Human Resource and Social Development said the initiative is also aimed at supporting its vision of establishing an attractive job market, empowering employees and developing the work environment in the Kingdom.
The reforms will allow foreign workers the right to change jobs by transferring their sponsorship from one employer to another, leave and re-enter the country and secure final exit visas without the consent of their employer, which had long been required.
The initiative is slated to come into effect on March 14, 2021. Saudi Arabia boasts some 10 million foreign workers.
The reforms are part of Vision 2030 aimed at making Saudi Arabia more attractive to foreign investors, expanding the private sector and diversifying the Kingdom's oil-dependent economy.
The ministry said the initiative will improve the efficiency of the work environment in Saudi Arabia and complement similar initiatives launched in this regard, 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 labor disputes.
The initiative seeks to increase the flexibility, effectiveness and competitiveness of the labor market and raise its attractiveness in line with the best international practices and Saudi labor law.
It also activates the contractual agreement between the employee and employer based on their employment contract through digital documentation of those contracts, which will contribute to reducing the disparity between the Saudi workers and the expatriates. This, in turn, will reflect positively on the job market by increasing employment opportunities for Saudis, while also increasing the attractiveness of the local job market for top talent.
The Exit and Re-Entry Visa reforms allow expatriate workers to travel outside the Kingdom without the employer's approval after submitting a request. The employer will be notified electronically of their departure.
The Final Exit Visa reforms allow the expatriate worker to leave the Kingdom after the end of the employment contract without the employer's consent, and will notify the employer electronically with the worker bearing all consequences (financial or otherwise) relating to breaking the employment contract. All three services will be made available to the public through the smartphone application “Absher” and the Human Resources Ministry’s “Qiwa” portal.
