The recent regulations implemented by Saudi Arabia for expatriate employees have changed the labour law, contracts of employment, and work permits. This change belonged to the Vision 2030 of the Kingdom of Saudi Arabia so as to make work better and easier for foreigners. Employers in Saudi Arabia have to understand these updates along with the expatriates in order to follow the instructions of the Ministry of Human Resources and Social Development (MHRSD).

Key Changes in Labour Law for Expatriate Workers

All new variations cover a broad range of perspectives on work permits, wage payments, and other aspects of employment contracts. These changes align with Saudi Arabia’s Vision 2030. The goal is to improve and simplify working conditions for foreigners.

1. Employment Contracts and Fixed-Term Agreements
   In the past, foreign employees were severely limited with regard to the renewal and termination of their contracts. As per the new regulations, foreign employees in the private sector are now required to have fixed-term contracts. 
   If an expatriate continues to work without a renewed contract, the agreement automatically turns into an open-ended contract, which is better for employment security. This gives expatriate workers long-term job security and protection under Saudi labor law, making work more predictable.
    
2. Work Permit Validity and Renewals
   As far as the work permit renewal is concerned, the procedures have been simplified to assist the employer-employee relationship. Employers are now required to submit renewal requests sixty days prior to the expiration of the permit in order to avoid fines. Expat workers are now also granted a 90-day grace period after the expiration of a work permit where they can either apply for a new permit or look for other jobs.
    
3. Wage Protection System (WPS) Enforcement
   The Ministry of Human Resources has increased supervision with respect to the WPS to ensure that workers are paid accordingly. Employers must pay salaries on time and cannot deduct or delay them without employee permission. This enforcement guarantees that wage payments are consistent, protecting expatriates from financial insecurity and unfair treatment.

Qiwa Platform and Labour Market Reforms

Saudi Arabia developed the Qiwa Platform to oversee the labor market and streamline employment procedures. It enables expatriate workers to switch employers without their previous employer’s consent. However, they must complete their contract and serve the required notice period.

Furthermore, the platform enhances labour rights by enhancing the procedures of dispute resolution, thus allowing the expatriates to report any violation of labour rights or contracts.

With the expansion of the Qiwa system, expatriates now have access to training programs and career development initiatives. This allows them to upgrade their skills, making them more competitive in the labor market and increasing their job opportunities.

Enhanced Job Mobility for Foreign Workers

The new regulations of expatriate employment regulations allow foreign workers in Saudi Arabia to change jobs if they:

• Have completed the fixed-term contract
• Have served one year or more on an indefinite term contract.
• Where the employer has violated the labour rights or the terms of the contract
• Adherence to the notice period as prescribed by labour laws i.e. 90 days for managerial posts and 60 days for other positions.

This project lessens corporate reliance on visa transfers and encourages fair labour market competitiveness. Additionally, expatriates who wish to switch jobs must now process their applications through the Qiwa system. This ensures transparency in job transfers and prevents fraudulent employment practices.

Private Sector Reforms and Economic Impact

The reforms are designed to boost private sector workforce productivity as well as meet the aims of Vision 2030 to strengthen Saudi Arabia’s position in the world economic community. By improving working conditions and providing expatriates with greater flexibility, the country seeks to retain highly-skilled professionals and raise investor confidence.

Companies are also faced with the pressure to comply with more stringent human resources and social policies. Employers that do not comply with the requirements of labour law could be hit by financial penalties and be prevented from employing foreign workers.

With these new measures, businesses must now implement structured HR policies to avoid legal risks. Employers should invest in compliance training and ensure that their employment practices align with updated regulations.

Final Thoughts

The new rules for expatriate labour in Saudi Arabia are a manifestation of the Kingdom's commitment to making the job market fair, transparent and fast. The Saudi government is improving expatriate workers' experience by ensuring employment contracts are secure, payments are paid on time, and establishing the Qiwa platform.

Understanding these changes, therefore, will be paramount for expatriate employees and employers alike and for compliance and success in the market for the long haul. If you have further inquiries regarding expatriate recruitment, reach out to HamdanGlobal. Call us now to comprehend the updated labour laws and hire the best overseas talent for your organization!