Saudi labour authorities are stressing the importance of swift electronic authentication of employment contracts in the private sector, implementing a phased plan to protect the rights of both employers and employees.

Earlier this year, the Saudi Ministry of Human Resources introduced an authentication plan through the Qiwa platform, requiring private sector establishments to document 20% of their employees' contracts in Q1 2023, 50% in the second half, and 80% in Q3.

Employers committing to authenticate 80% or more of their employees' contracts via Qiwa will gain full access to ministry services.

The plan aims to safeguard contractual rights, foster a stable labor environment for increased productivity, and enhance the job market in the kingdom. Qiwa authentication aids in verifying compliance with labor rules, contract data, and updating information related to employment contracts for foreign and Saudi workers.

Upon approval by both the worker and the employing establishment, the contract becomes authenticated and accredited by the ministry.

In 2020, Saudi Arabia implemented significant labor reforms, notably improving the sponsorship system. These reforms, effective the following year, enable job mobility and regulate exit and re-entry visa issuance for expatriate workers without employer consent.

Job mobility allows expatriate workers to transfer between employers at the end of the work contract without needing employer approval. Exit and re-entry visa reforms permit expatriate workers to travel outside Saudi Arabia without employer approval after submitting a request.

With around 32.2 million people, Saudi Arabia is home to a sizable community of foreign migrants.