Dubai
Saudi Arabia’s Ministry of Human Resources and Social Development has announced a series of labour reforms regarding the employment of expats, including the ability to change jobs.
The Labor Reform Initiative is aimed at improving contractual relations between workers and employers, in a push that aims to establish an attractive job market in the Kingdom. The new initiative, which applies to foreign workers, will allow job mobility and regulates the exit and re-entry visa issuance. The ministry said the initiative – which will come into effect in March 14, 2021 – will improve and increase the efficiency of the work environment in Saudi Arabia. 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 labor disputes. The new reforms seek to increase the flexibility, effectiveness, and competitiveness of the labor market and raise its appeal with international practices, and attract top talent, the ministry said.
Under the new initiative, employers will be required to digitally document contracts of employees in an aim the ministry says will reduce the disparity between Saudi workers and the expatriates. The reforms will allow expatriate workers to transfer between employers after the work contract expires, without the need for the employer’s consent. The initiative also outlines conditions applicable during the validity of the contract, provided a notice period and specific measures are adhered to.
