According to a major change to Saudi Arabia’s labor regulations, the traditional one-year waiting period for expatriate workers to move employers is no longer an issue. Approved by the Minister of Human Resources and Social Development, this amendment aims to increase the rights and opportunities of expatriate workers. It signifies a major change in the country’s stance on labor mobility.Â
For all expats in the Kingdom, here is a detailed explanation of the changes and their meaning.
Understanding the Amendments
According to the old Saudi labor laws, expatriate workers could not be transferred to another company unless they had worked for their current employer for at least a year. This restriction posed a significant challenge for individuals who were already struggling to make ends meet or were looking for new chances.
The current adjustments introduce three major changes:
1. Immediate Transfer With Consent:
With their current employer’s permission, workers with an expat visa can now switch jobs as soon as they land in Saudi Arabia. There is no longer a one-year waiting period, giving employees more leeway right from the start.
2. Transfer at Contract End:
It is unnecessary to obtain prior authorization from an existing employer for an expat worker to transfer to a new employer once a documented employment contract expires. This law gives workers the freedom to pursue other career opportunities once their contract ends.
3. Early Transfer Conditions:
In several cases, expatriate workers have the option to switch employers prior to the conclusion of their contract:
- Since arriving in Saudi Arabia, the worker must have worked for the current employer for a minimum of 12 months.
- Employees are required to have worked for their present company in Saudi Arabia for at least a year after arriving in the country.
- During the transfer, the procedures outlined in Article 77 of the Saudi Labor Law, which governs contract termination, must be adhered to.
Implications for Expatriate Workers
Enhanced Job Mobility
The changes make it easier for expatriate workers to move about and seek out new opportunities, greatly increasing their employment mobility. Thanks to the changes, workers are now able to make well-informed career decisions without any obstacles. These changes include removing the one-year waiting period in certain situations and establishing clear criteria for contract-based transfers.
Streamlined Administrative Processes
These innovations have eased the job transfer procedure. The Qiwa platform enables expatriate workers to begin transfers, making it easier for them to switch firms while ensuring they follow all rules and regulations. This digital platform is critical to upgrading labor market infrastructure since it increases efficiency and removes regulatory barriers for employers and employees.
Compliance with the Nitaqat Saudization Program
Although the changes grant greater leeway, they are also in line with the objectives of the Nitaqat Saudization initiative. Companies are required to ensure that employees’ transfers to other positions do not violate the program’s requirements, which aim to increase private-sector employment for Saudi nationals. This alignment can achieve national workforce development goals while also safeguarding the rights of expatriate workers.
Steps to Transfer Employment
For expatriate workers considering a job transfer under the new regulations, here are the essential steps:
1. Obtain Consent:
If you want to leave your current job before one year, you must first get permission from your employer. This action is critical to the complete implementation of the updated labor law.
2. Notification:
Give your current employer at least three-quarters of a year’s notice before you want to depart. This notice period allows you to adhere to contractual responsibilities and arrange for effective transitions.
3. Contractual Compliance:
Check that the transfer procedure follows the rules laid out in Article 77 of the Saudi Labor Law, which governs the termination of contracts. Paying all bills and meeting all other contractual obligations are included in this.
4. Utilize Qiwa Platform:
The job transfer can be initiated and completed via the Qiwa site. This digital platform has made the transfer process more transparent and efficient by streamlining documentation, verification, and approval.
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