Saudi Arabia reforms sponsorship rules and limits disputes


Saudi Arabia’s sponsorship reforms have led to more job mobility and less labour disputes.

The Ministry of Human Resources & Social Development introduced the new laws at the end of 2020 and they came into effect in March 2021.

The reforms are viewed as part of Saudi Arabia’s plans to invite more foreign talent and develop job market opportunities and possibilities for over 10.5 million foreign workers in the country.

The new laws remove a number of limitations for foreign workers, better regulate the issuance of visas and address cases where workers were not provided with an employment agreement or contract or did not receive their salaries or wages on time.

Under the new laws, expatriates and foreign workers can change between jobs as soon as their contract is completed without the need for their employer’s approval. Further, it outlines or summarizes transition mechanisms where the contract is still active and states that it is permitted to transfer in adherence with the specified obligations including, but not limited to the notice period.

Moreover, expatriates and foreign workers no longer need the permission of their employer to leave and re-enter the country and can now do so by submitting an application online.

Please click on the link and reach out to learn more about the latest reforms in the Kingdom of Saudi Arabia as well as the initiatives of Business Start Up Saudi Arabia.

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