In a significant stride towards bolstering contractual bonds between employers and employees, the Ministry of Human Resources and Social Development (MHRSD) has announced that up to one million individuals have reaped the benefits of its program.

Key Features and Impact:

Job transfer, exit/reentry, and final exit flexibility have emerged as pivotal aspects of the initiative, resulting in a remarkable 50% reduction in labor disputes since its inception.

Aligned with the Kingdom's Vision 2030, the initiative represents an extension of the National Transformation Program 2020, aimed at revising labor laws to fortify the employer-employee relationship.

By streamlining exit, reentry, and final exit procedures, the project facilitates expatriate employment mobility, thereby enhancing the allure and competitiveness of Saudi Arabia's labor market.

Eligibility criteria mandate expatriate workers to be on the payroll with no pending service transfer requests, and to have served their current employer for a minimum of 12 months in the Kingdom.

Noteworthy is the requirement for a valid and authenticated employment contract, alongside adherence to the stipulated notice period.

Amicable Settlement Initiative:

Complementing the effort is the Ministry's Amicable Settlement Initiative, designed to revolutionize labor dispute resolution through mediation.

In cases where mediation fails, an integrated electronic system expedites the referral of disputes to the labor court within 21 days, following which personnel trained in amicable resolution facilitate proceedings.

The Kingdom has witnessed a commendable 77% reconciliation rate through this process, marking a significant shift towards resolving disputes without judicial intervention.