Saudi Arabia reforms sponsorship rules and limits disputes

07/09/21

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.

Other News

BSUS News 29 - Thumb

Saudi Arabia launches Rua Al Madinah Project

Saudi Arabia recently unveiled the Rua Al-Madinah masterplan - a mega real estate development near the Grand Mosque.

The project will be developed by the Rua Al-Madinah Holding Company,...

Read more
BSUS News 28 - Thumb

Demand for tourism services in Saudi Arabia soars

Saudi Arabia has witnessed demand for tourism services increase 108% according to a recent Business Traveler report.

Consequently, the value of tourism services reached SAR 4.1 billion (USD 1.1 billion)...

Read more
BSUS News 27 - Thumb

Saudi Arabia reports budget surplus from oil revenues

Saudi Arabia’s economy is predicted to grow at 7.6% this year according to the International Monetary Fund’s (IMF) World Economic Outlook 2022 report.

Its estimates for Saudi Arabia contradict the...

Read more
BSUS News 26 - Thumb

More investment in local industry under NIDLP

Saudi Arabia`s National Industrial Development and Logistics Program (NIDLP) invested SAR 378 billion (USD 100 billion) in local industry projects according to its 2021 report.

The program was introduced...

Read more
BSUS News 25 - Thumb

Saudi Arabia’s spending on health and education up

Saudi Arabia has increased its expenditure in the health and education sectors in the first half of 2022 according to recent figures published by the government.

These...

Read more
BSUS News 24 - Thumb

Saudi Arabia’s logistics sector is reaching out to the world

Saudi Arabia`s Ministry of Transport is developing the logistics sector to support the Vision 2030 program of social and economic reform.

Diversifying the economy away from hydrocarbons is an important...

Read more
BSUS News 23 - Thumb

Artificial intelligence to be top contributor in MENA

Artificial intelligence (AI) is estimated to contribute SAR 1.2 trillion (USD 320 billion) to the economic growth in the Middle East and North Africa (MENA) region by 2030.

The figures were derived...

Read more
BSUS News 22 - Thumb

Interest of foreign investors booms in Saudi Arabia

Saudi Arabia’s Ministry of Investment (MISA) facilitated over 100 investment contracts valued at SAR 15 billion (USD 4 billion) in the first quarter of 2022.

The investments will create over 5,800...

Read more

Page Break