Labor Reform Initiative: expatriate workers may change employer and leave the country without their employer’s consent, under conditions
Since 14 March 2021, expatriate workers in Saudi Arabia’s private sector can move to a new employer without their current employer’s consent once their contract has expired, and during the contract after one year of service and a notice to the employer, through the Ministry’s Qiwa platform. They can also request an exit and re-entry visa or a final exit visa themselves on Absher, the employer being notified electronically; a worker who leaves before the end of the contract bears the consequences of breaking it. The Ministry of Human Resources and Social Development, which announced the initiative on 4 November 2020, presents it as basing the relationship on the documented employment contract; Human Rights Watch judged that it does not dismantle the kafala sponsorship system and, like the ILO, points out that domestic workers remain outside the Labor Law. The Labor Law amendments in force since 19 February 2025 (Royal Decree M/44) added a resignation procedure and set the worker’s notice period at 30 days.
Key points
Service with the current employer required before a transfer during the contract
1 years
since March 2021 · Announced
according to the ministry’s LRI Services Guidebook[3]
Counted from entry into the Kingdom; no condition once the contract has expired.
Domestic workers in the foreign workforce, outside Labor Law protections
30%
2025 · Estimate
according to the ILO (project SAU/25/50/SAU)[18]
Worker’s minimum notice for an open-ended monthly-paid contract
30
days, since 19 February 2025 · Announced
according to Article 75 of the Labor Law as amended by Royal Decree M/44[12][16]
Previously at least 60 days for either party; the employer’s notice stays at 60 days.
Immigrant population share
40.3%
2024
- Status: In force since February 19, 2025. Amendments approved by Cabinet Decision No. 117 of 6 August 2024 and Royal Decree M/44 of 12 August 2024, in force 180 days after publication in Umm al-Qura (23 August 2024); 38 articles amended, 7 removed, 2 added. They apply to every worker under the Labor Law, Saudi and expatriate.[5][6][9][10]
At a glance
Reference text
Labor Reform Initiative (« مبادرة تحسين العلاقة التعاقدية », Improving the Contractual Relationship initiative) of the Ministry of Human Resources and Social Development, under the National Transformation Program[1][2][3]
No. HRSD announcement of 18 Rabi’ al-Awwal 1442 H (4 November 2020); LRI Services Guidebook (HRSD, 2020) · November 4, 2020
Read the text ↗Carried by
- Ministry of Human Resources and Social Development (HRSD)[1][3]Designed and launched the initiative under the National Transformation Program, after meetings with private sector representatives and the Council of Saudi Chambers; runs the job mobility service on its Qiwa platform · 2020-2021 · Initiator
- Ministry of Interior and National Information Center[1][3]Partners in developing the initiative; the exit and re-entry and final exit visa requests go through the Absher platform · since 2021 · Implementation
- Ahmed bin Sulaiman Al-Rajhi[8]Minister of Human Resources and Social Development; welcomed the Cabinet’s approval of the 2024 Labor Law amendments · 2024-2025 · Amendment
Implementation
- Ministry of Human Resources and Social Development (HRSD)
- Qiwa platform (HRSD): job offers and transfer requests
- Absher platform (Ministry of Interior): exit and re-entry and final exit visa requests
- Labor courts and amicable settlement: disputes between worker and employer
Stated objective
Base the relationship between an expatriate worker and the employer on their documented employment contract, increase the flexibility, effectiveness and competitiveness of the labour market in line with international practice, reduce the gap between the contractual procedures of Saudi and expatriate workers, reduce labour disputes and attract skilled talent, within the Vision 2030 targets.[1][2]
according to the Ministry of Human Resources and Social Development (announcement of 4 November 2020)
Main measures
- Job mobility at the end of the contract: an expatriate worker may move to another employer when the employment contract expires, without the current employer’s consent.[1][2]
- Job mobility during the contract: the worker must have completed one year of service with the current employer from entry into the Kingdom, hold an attested contract, receive a job offer from the new employer through Qiwa and give the current employer notice, respecting the notice period. The new employer must comply with the Wage Protection System, contract registration and self-evaluation rules. In the first year, a change requires the current employer’s approval.[3]
- Transfer without conditions in seven cases: no registered contract (registration deadline: three months after entry), wages unpaid for three consecutive months, employer absent (travel, imprisonment, death or other reason), expired work permit or visa, a commercial cover-up reported by a worker not involved in it, an employer who misses two court or two amicable settlement hearings, or the current employer’s approval.[3]
- Exit and re-entry visa: during the contract, the worker applies on Absher and the employer is notified electronically; the employer cannot cancel a valid visa, does not bear its cost, and penalties for breach of contract apply to a worker who does not return in time.[1][3]
- Final exit visa: the worker may leave the Kingdom right after the end of the contract without the employer’s consent, the employer being notified electronically; leaving during the contract is possible, the worker bearing all the consequences of breaking it.[1][2][3]
- 2025 Labor Law amendments, notice: for an open-ended contract paid monthly, the worker now gives at least 30 days’ written notice and the employer 60 days (the previous text set at least 60 days for either party).[12][16]
- 2025 Labor Law amendments, resignation: a written resignation is deemed accepted if the employer does not answer within 30 days; the employer may postpone acceptance by at most 60 days with a written reason, and the worker may withdraw it within 7 days. The probation period may not exceed 180 days in total (the previous text set 90 days, extendable to 180 by written agreement).[12][13][16]
- 2025 Labor Law amendments, leave: fully paid maternity leave rises from 10 to 12 weeks (six of them mandatory after childbirth), and a worker gets three paid days on the death of a sibling.[15][14][16]
In data
Unemployment rate (ILO)
3%
2025
Employment rate (15-64)
63.1%
2025
Activity rate
65.1%
2025
Immigrant population share
40.3%
2024
Remittances sent abroad
58.7BUSD
2025
Timeline
Announcement of the Labor Reform Initiative under the National Transformation Program[1][2]
The ministry presents the initiative as a complement to the Wage Protection System, the digital documentation of employment contracts and the « Wedy » amicable settlement of labour disputes, developed with the Ministry of Interior and the National Information Center.
The ILO Regional Office for Arab States welcomes the announcement[17]
Its regional director Ruba Jaradat calls it an important step that could improve migrant workers’ conditions « when fully implemented », and says the arrangements for implementing, monitoring and assessing it are key to its success.
Human Rights Watch: « Saudi Arabia: Labor Reforms Insufficient »[19](secondary source)
The organisation notes that the reforms partly lift two elements of the kafala system (employer consent to change jobs and to leave the country) but keep the exit permit and the employer’s control over residency and work permits, and exclude domestic workers and farmers.
Cabinet Decision No. 117 approves amendments to the Labor Law[6][7]
According to the ministry, the amendments (38 articles amended, 7 removed, 2 added) follow benchmarking with other countries’ labour laws and a consultation of more than 1,300 participants; they define resignation and assignment (the provision of workers to a third party), add an article on the resignation procedure, change the worker’s grievance procedure and penalise unlicensed recruitment.
- In force
Labor Law amendments of Royal Decree M/44 in force: resignation procedure and 30-day notice for the worker[5][6][9][10]
Amendments approved by Cabinet Decision No. 117 of 6 August 2024 and Royal Decree M/44 of 12 August 2024, in force 180 days after publication in Umm al-Qura (23 August 2024); 38 articles amended, 7 removed, 2 added. They apply to every worker under the Labor Law, Saudi and expatriate.
- Current step
ILO cooperation programme with the ministry, including an assessment of the initiative’s impact on labour mobility[18]
Project SAU/25/50/SAU (third phase, July 2025 to June 2028): it raises awareness of the impact of the 2021 initiative on labour mobility, based on an assessment of the challenges and benefits of full mobility, addresses the gaps in the kafala reforms and aims, for domestic workers, to suppress exit permits.
The debate
Citoyen takes no position: arguments are reported as their authors put them.
According to its supporters
- The Ministry of Human Resources and Social Development argues that the initiative increases the flexibility, effectiveness and competitiveness of the labour market, brings labour rules in line with international practice, should reduce disputes between employers and workers and help attract highly skilled talent.[1]
- According to the ministry, basing the relationship on the documented contract reduces the gap between the procedures applying to Saudi and expatriate workers, which should increase job opportunities for Saudis.[1][2]
- The ILO Regional Office for Arab States called it an important step towards decent work that could improve migrant workers’ conditions once fully implemented, and has since provided technical assistance under the initiative.[17][18]
- In its December 2025 review, the ministry writes that the initiative has transformed the contractual relationship and reduced dependency on sponsors, the job mobility service letting workers change employer without the previous employer’s consent.[4]
According to its opponents
- Human Rights Watch considers that the reforms do not dismantle the kafala system: employers still apply for, renew and cancel their workers’ residency and work permits, so a worker can become undocumented through the employer’s failure.[19](secondary source)
- Domestic workers are left out because they are not covered by the Labor Law: Human Rights Watch counted more than 3.7 million of them, and the ILO estimates they make up 30% of the foreign workforce, still subject to exit permits.[19][18]
- Human Rights Watch notes that the exit permit itself is kept, that workers bear its fees, and that a worker who leaves with a final exit visa before the end of the contract is permanently banned from working in the Kingdom.[19](secondary source)
- During the first year, often the period of greatest vulnerability according to Human Rights Watch, a worker still needs the employer’s approval to change jobs, and a worker against whom an « absence from work » complaint has been filed cannot use the mobility service.[19][3]
Indicators to watch
- Unemployment rate · Banque mondiale / OITSee the card →
- International migrants, share of the population · Banque mondiale / ONU DAESSee the card →
- Personal remittances paid by migrants · Banque mondiale / FMISee the card →
- Employment rate of people aged 55-64 · OITSee the card →
- Unemployment of Saudi and non-Saudi workers, Labour Force Survey · GASTATno Citoyen card yet
- Job transfers and exit visas processed through Qiwa and Absher · HRSD / ministère de l’Intérieurno Citoyen card yet
- ILO assessment of the initiative’s impact on labour mobility (project SAU/25/50/SAU) · OITno Citoyen card yet
Sources
- [1]Ministry of Human Resources and Social Development Launches Labor Reforms for Private Sector Workers –Ministry of Human Resources and Social Development (HRSD), November 4, 2020
- [2]وزارة الموارد البشرية والتنمية الاجتماعية تطلق مبادرة "تحسين العلاقة التعاقدية" لعاملي منشآت القطاع الخاص –وزارة الموارد البشرية والتنمية الاجتماعية, November 4, 2020
- [3]Labor Reform Initiative (LRI) Services Guidebook (English version, HRSD 2020; copy archived by the Gulf Labour Markets, Migration and Population programme) –Ministry of Human Resources and Social Development (HRSD), via Gulf Research Center (GLMM database), 2020
- [4]Progress in the Saudi Labor Market –Ministry of Human Resources and Social Development (HRSD), Knowledge Centre, December 2025
- [5]مرسوم ملكي رقم (م/44) وتاريخ 08/02/1446هـ –جريدة أم القرى (Umm al-Qura, official gazette), August 23, 2024
- [6]الموافقة على تعديل بعض مواد نظام العمل: قرار رقم (117) وتاريخ 02/02/1446هـ –جريدة أم القرى (Umm al-Qura, official gazette), August 23, 2024
- [7]صدور موافقة مجلس الوزراء على تعديل عدد من مواد نظام العمل –وزارة الموارد البشرية والتنمية الاجتماعية, August 6, 2024
- [8]وزير الموارد البشرية والتنمية الاجتماعية يشكر القيادة بمناسبة موافقة مجلس الوزراء على تعديل عدد من مواد نظام العمل –وزارة الموارد البشرية والتنمية الاجتماعية, August 6, 2024
- [9]Ministry of Human Resources and Social Development Announces the Enforcement of Labor Law Amendments Starting Tomorrow, Wednesday –Ministry of Human Resources and Social Development (HRSD), February 26, 2025
- [10]بدء سريان تعديلات نظام العمل غدًا الأربعاء –وزارة الموارد البشرية والتنمية الاجتماعية, February 18, 2025
- [11]الوزارة تُعلن عن نشر اللائحة التنفيذية لتعديلات نظام العمل –وزارة الموارد البشرية والتنمية الاجتماعية, February 20, 2025
- [12]Labor Law, Part Five: Labor Relations (Articles 50-88, text in force) –Ministry of Human Resources and Social Development (HRSD)
- [13]Labor Law, Part One: Definitions & General Provisions (text in force) –Ministry of Human Resources and Social Development (HRSD)
- [14]Labor Law, Part Six: Working Conditions and Terms of Employment (text in force) –Ministry of Human Resources and Social Development (HRSD)
- [15]Labor Law, Part Nine: Women Employment (text in force) –Ministry of Human Resources and Social Development (HRSD)
- [16]Labor Law, Royal Decree No. M/51 (English translation, version before the 2024 amendments) –Human Resources Development Fund (HRDF, Hadaf), 2022
- [17]ILO Regional Office welcomes announcement of Saudi reforms on labour migration –International Labour Organization (ILO), Regional Office for Arab States, November 6, 2020
- [18]Advancing inclusive and future-ready labour market governance in the Kingdom of Saudi Arabia (SAU/25/50/SAU) –International Labour Organization (ILO), Development Cooperation Dashboard
- [19]Saudi Arabia: Labor Reforms Insufficient –Human Rights Watch, March 25, 2021 · secondary source