End of Kafeel System in Saudi Arabia, New Labour Reforms Initiated

The new Labour Reformed Initiative (LRI) will be effective from March 14, 2021.

Riyadh: A new labour reforms initiated by Saudi Arabian Ministry of Human Resources and Social Development (MHRSD) under the National Transformation Program (NTP) that aims to support the establishing an attractive job market, empowering and developing labor competencies and developing the work environment in the Kingdom.

The reformed initiative will be effective from March 14, 2021 and 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 consider the rights of both parties of the contractual relationship.

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 relating to breaking the employment contract.

New labour reforms is also expected to decrease the number of dispute cases between employers and employees and attract high-level caliber from around the world.

All these services will be made available to the public through the government postal “Absher” and “Qiwa”.

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