The Saudi Ministry of Human Resources introduced a phased authentication plan for job contracts, urging private sector businesses to adopt electronic verification via the Qiwa platform.
The Ministry's directive outlines a strategic plan for private sector establishments, requiring them to document 20%, 50%, and 80% of employees' contracts in the first quarter, second half, and third quarter of 2023, respectively.
Employers who authenticate 80% or more of their employees' contracts through Qiwa will be granted full access to the Ministry's services, emphasizing the importance of compliance in the evolving labor landscape.
Fostering stable labor environment
The authentication plan aims to preserve the rights of contractual parties, creating a stable labor environment conducive to increased employee productivity and contributing to the overall growth of the job market in the kingdom.
The authentication process not only ensures compliance with labor regulations but also serves as a mechanism to update and verify contract data, benefiting both foreign and Saudi workers employed in the private sector.
Building on 2020 reforms
The latest initiative builds upon the significant labor reforms introduced in 2020, granting expatriate workers increased job mobility and regulating exit and re-entry visas, thereby fostering a more flexible and dynamic labor market.
In 2020, Saudi Arabia introduced groundbreaking labor reforms, allowing expatriate workers to transfer between employers without consent upon contract expiration, and facilitating travel outside the country without employers' approval through exit and re-entry visa reforms.
With a population of around 32.2 million, Saudi Arabia is home to a large community of foreign migrants. The authentication plan reflects the kingdom's commitment to modernizing its labor market and ensuring fair practices for all stakeholders.
