Saudi: Labour Reform Initiatives come into effect on March 14, 2021

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The Ministry of Human Resources and Social Development (MHRSD) launched Wednesday a Labor Reform Initiative (LRI) under the National Transformation Program (NTP) that aims to support the Ministry’s vision of establishing an attractive job market, empowering and developing labor competencies and developing the work environment in the Kingdom.

The initiative allows job mobility and regulates the Exit and Re-Entry Visa issuance. It applies to all expatriate workers in the private sector and includes specific control measures put in place to take into account the rights of both parties of the contractual relationship.

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The reforms come into effect on March 14, 2021.

Employee mobility will allow expatriate workers to transfer between employers upon the expiry of the binding work contract without the employer’s consent.

The Exit and Re-Entry Visa reforms allow expatriate workers to travel outside Saudi Arabia without the employer’s approval after submitting a request: the employer will be notified electronically of their departure.

The Final Exit Visa reforms allow the expatriate worker to leave the Kingdom after the end of the employment contract without the employer’s consent and will notify the employer electronically with the worker bearing all consequences (financial or otherwise) relating to breaking the employment contract.

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