Forces: Cases of deportation of overdue work permits for new establishments

In a regulatory step aimed at controlling the labor market and clarifying the financial obligations between the parties to the contractual relationship, the “Qiwa” platform, the digital arm of the Ministry of Human Resources and Social Development in the Kingdom of Saudi Arabia, revealed precise details regarding the mechanism for transferring work permit arrears for private sector workers when they move to new establishments.

Cases of late fee transfer

The platform clarified unequivocally that financial obligations related to outstanding work permit fees are not automatically transferred to the new employer except in two specific cases. The first case is if the employee's official status prior to the transfer was recorded as "absent from work," and the second case is if the previous establishment where the employee worked was officially classified as "non-existent." Conversely, "Qiwa" confirmed that all outstanding financial obligations remain the responsibility of the previous employer and will not be carried over if the employee's status was recorded as "on the job" during the transfer process.

The context of digital transformation and labor market regulation

This clarification comes as part of the Ministry of Human Resources' ongoing efforts, through the "Qiwa" platform, to automate and unify all labor services under a single digital umbrella. These measures are an integral part of the Kingdom's Vision 2030 objectives, which aim to enhance the efficiency of the labor market, safeguard the rights of all parties (the worker, the current employer, and the new employer), and eliminate negative phenomena such as commercial concealment and undocumented labor by clearly defining financial responsibilities and preventing evasion of government fees.

Grace period and renewal fees

Regarding the transition period, the platform clarified important details about work permit renewal fees after the termination of the employment contract. A 60-day grace period is granted after the employee's contract ends and their status changes to "terminated." If the worker transfers to a new employer within this period, the new employer is responsible for the renewal fees. However, if the 60-day period expires without the transfer of services, the fees remain registered against the previous employer, and the worker's status automatically changes to "absent from work," which entails legal and regulatory consequences.

Requirements for professions and establishment activity

In a related matter concerning the regulation of professions, the platform emphasized the prohibition of transferring any employee whose current profession does not align with the actual activities of the establishment they wish to transfer to. It stipulated that, to complete the transfer, an employee must be selected with a job title related to the establishment's activities, or the status of unrelated professions must be rectified if the establishment has reached its maximum permitted occupancy. This measure aims to promote quality Saudization and ensure that workers are actually performing the tasks for which they were recruited or hired, thereby increasing private sector productivity and improving the investment climate in the Kingdom.