Forces preventing the transfer of an employee's services in a profession that contradicts the establishment's activity

In a new regulatory step aimed at controlling the Saudi labor market and raising the efficiency of recorded data, informed sources told Okaz newspaper that the “Qiwa” platform, the digital arm of the Ministry of Human Resources and Social Development, has begun implementing new restrictions related to the transfer of expatriate workers’ services between establishments.

The condition of matching the profession with the activity

The platform clarified that no employee transfer will be permitted unless their current occupation is identical to or directly related to the activities of the new establishment they wish to join. This measure aims to reduce the haphazard allocation of jobs and ensure that workers perform the tasks for which they were recruited or that align with the nature of the host establishment's operations.

The authority emphasized that if an establishment wishes to recruit a new employee through transfer of services, it must select an employee whose job title aligns with its registered business activity. Furthermore, if the establishment's file contains any observations indicating that it has exceeded the maximum permitted number of jobs unrelated to its business activity, the system will require it to rectify this situation first by removing or amending the job titles of employees whose positions are inconsistent with the establishment's activities.

The context of digital transformation and labor market regulation

These steps are part of the Ministry of Human Resources and Social Development's strategy, aligned with the Kingdom's Vision 2030, which aims to automate government services and enhance compliance in the labor market. The "Qiwa" platform serves as a unified interface for all labor sector services, making it easier for employers to manage their establishments effectively while ensuring compliance with regulations that combat commercial concealment and guarantee the accuracy of workforce data.

In a related context, the platform confirmed that establishments are only authorized to amend the professions of their currently registered employees. As for employees whose transfer requests are still "pending," they remain registered under the current (old) establishment's identity, and the establishment bears all responsibilities for them until the digital transfer process is finalized and they are officially transferred to the new establishment's records.

Mechanism for handling multi-activity records

On another note, and in conjunction with the facilities provided by the Ministry of Commerce, which allowed the addition of several commercial activities in one registration for a fee of 100 riyals and without the need to visit branches, “Qiwa” has developed a specific mechanism to calculate the localization scope for these establishments.

In the case of a commercial registration encompassing multiple activities, the automated system in "Qiwa" selects the activity requiring the highest Saudization rate (Nitaqat) as the benchmark against which the establishment's performance is measured. The platform has linked all economic activities to the National Standards of Economic Activities (ISIC4), merging activities with similar Saudization rates into a unified entity for accurate calculation. An electronic calculator is also provided, enabling employers to accurately and transparently determine their establishment's actual Nitaqat status.