5 advantages of having a notarized employment contract as an enforceable instrument in Saudi Arabia

Introduction to the second stage of contract documentation

The Ministry of Human Resources and Social Development in Saudi Arabia announced the launch of the second phase of its program to recognize employment contracts as enforceable documents. This phase includes fixed-term contracts when they are updated or renewed upon expiry. This strategic step is part of the Ministry's ongoing efforts to enhance the reliability of contractual relationships and improve the efficiency of procedures related to safeguarding the rights of all parties involved in employment, thereby contributing to a more stable and transparent work environment.

General context and historical background of the event

The Saudi labor market has undergone radical transformations since the launch of Vision 2030, which primarily aims to create an attractive and competitive work environment that meets global standards. Historically, labor disputes related to delayed wages or unclear contract terms consumed considerable time in labor courts. To address this challenge, the Kingdom previously launched the Wage Protection Program, followed by rapid steps toward the comprehensive digitization of government services. The conversion of employment contracts into enforceable instruments represents the culmination of these efforts, shifting the labor relationship from a lengthy and complex litigation process to one of direct and swift enforcement through digital judicial channels.

5 key advantages of a notarized employment contract

This new system offers a range of benefits that ensure labor market stability and protect the rights of both parties, including:

• Digital link to wage protection: The digitally documented contract is linked to the Wage Protection Program, which prevents any manipulation of financial entitlements and ensures that they are paid on time.
• Compliance with the labor system: Ensures full compliance with the latest amendments to the Saudi labor system and applicable executive regulations.
• Financial transparency: It provides complete clarity on all elements of base pay, commissions, and other financial benefits, preventing any future confusion.
• The provisions are organized precisely: The provisions for the trial period, the duration of the contract, and the procedures for resignation or termination of the contractual relationship are organized very precisely.
• Standardization of terminology: It provides an accurate table of definitions of legal and labor terms to standardize understanding between the worker and the employer and prevent misinterpretations.

Implementation mechanism via the 'Qiwa' and 'Najiz' platforms

The Ministry clarified that benefiting from an enforcement order requires first authenticating or updating the employment contract through the Ministry of Human Resources' 'Qiwa' platform, and then obtaining an enforcement number from the Documentation Center at the Ministry of Justice. If the employee does not receive their full wages within 30 days of the due date, or receives only a portion after 90 days, they have the right to submit a direct electronic enforcement request through the Ministry of Justice's 'Najiz' platform. To ensure fairness and reliability, the employer has the right to object within five days of being notified.

The importance of the event and its expected impact locally and internationally

Domestically ofcases and disputes to labor courts and will enhance job security for both citizens and residents, positively impacting productivity and organizational loyalty. Regionally and internationally, this step positions Saudi Arabia among the leading countries in protecting workers' rights, raising its ranking in global competitiveness indices and making the Saudi labor market a model to be emulated in the Middle East for implementing efficient justice and innovative digital transformation.