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 30 - Thumb

Saudi and IBM developing AI in several Arabic dialects

Saudi Arabia and IBM have joined hands to pioneer a transformative project - a generative AI programme designed to embrace the rich tapestry of Arabic dialects.

This innovative venture, spearheaded...

Read more
BSUS News 29 - Thumb

Saudi Arabia to welcome European Chamber of Commerce

Saudi Arabia will see the first European Chamber of Commerce in the Gulf region open in Riyadh, according to the EU’s special representative for the Gulf region.

The inaugural European Chamber of...

Read more
BSUS News 28 - Thumb

Saudi Arabia's non-oil activity increasing in line with Vision 30

Saudi Arabia's non-oil business activity grew at a steady rate in April according to a recently published survey with domestic demand driving output.

The seasonally adjusted Riyad Bank...

Read more
BSUS News 27 - Thumb

Saudi Arabia attracting GCC companies to lucrative opportunities

Saudi Arabia is attracting an influx of companies from across the Gulf Cooperation Council (GCC) due to burgeoning prospects and transformative development sweeping through the Kingdom.

Moreover, the...

Read more
BSUS News 26 - Thumb

Saudi sovereign wealth fund holds SAR 3.5 trillion in assets

Saudi Arabia’s Public Investment Fund (PIF) has enjoyed a 55 percent increase in assets under management and is now valued at SAR 3.49 trillion (USD 925 billion).

According to figures from the US...

Read more
BSUS News 25 - Thumb

Saudi Arabia waives customs duties to boost industrial sector

Saudi`s Ministry of Industry and Mineral Resources has announced that customs duties on selected manufacturing products will be waived from April 1.

The decision aims to help businesses with valid import...

Read more
BSUS News 24 - Thumb

Saudi CEO`s forecast business optimism and economic growth

Saudi Arabian Chief Executive Officers have shown unprecedented optimism for the economic growth prospects of the Kingdom over the next year.

According to a study by Price Waterhouse Coopers (PWC)...

Read more
BSUS News 23 - Thumb

Saudi Arabia to add 250,000 hotel rooms, revises tourist targets

Saudi Arabia plans to add 250,000 hotel rooms by 2030 according to the Kingdom’s Ministry of Tourism, with 75,000 to be contracted to the private sector. Meanwhile, approximately 12 resorts on the Red...

Read more

Page Break