Power: A maximum of 7 employment contracts per year for Saudis to regulate the market

New regulations for the Saudi labor market

The Qiwa platform, the digital arm of the Ministry of Human Resources and Social Development in Saudi Arabia, announced a significant update aimed at regulating contractual relationships in the local labor market. Under this regulation, a maximum number of employment contracts can be entered into by a Saudi employee within a single year has been set, a move intended to enhance job stability and curb practices that could harm the work environment.

The platform clarified definitively that a new employment contract will not be allowed for a Saudi employee if the number of his contracts exceeds 7 contracts within a period of 365 days, which begins to be calculated from the date of concluding the first employment contract during that period.

General context and objectives of the decision

This decision comes as part of the Kingdom's ongoing efforts to develop the labor market in line with the goals of Saudi Vision 2030, which aims to build a prosperous economy and a labor market that attracts national talent. Through the "Qiwa" platform, the Ministry is working to digitize all labor-related services, increasing transparency and streamlining procedures for both employers and employees. This latest regulation aims to address the phenomenon of excessive job turnover among some, which negatively impacts the productivity of establishments and hinders their development and growth plans. It also contributes to combating sham employment that exploits localization support programs such as "Nitaqat.".

Expected impact on the labor market

This decision is expected to have a multifaceted positive impact. Locally, it will encourage employees to seek stable career opportunities that offer genuine professional development, rather than constantly switching between short-term jobs. It will also incentivize companies to improve their work environments and offer competitive incentives to retain their staff. On a broader economic level, increased job stability will lead to a greater accumulation of experience within the national workforce, enhancing the quality of output and strengthening the competitiveness of the Saudi economy regionally and internationally.

Details of the application mechanism

According to clarifications issued by Qiwa, a Saudi employee who completes seven employment contracts within a single year will not be able to enter into an eighth contract until a full year has passed since the date of the first of those seven contracts. Regarding contracts that are currently in effect, the platform confirmed that an employee is allowed a maximum of two active contracts. If an employee wishes to take on a third job, they must terminate one of their existing contracts first before they can sign the new one.

Conditions for counting Saudis in “Nitaqat”

To ensure full benefit from localization support programs, the platform outlined the conditions that must be met by a Saudi employee to be counted in the “Nitaqat” program, which are:

• His age must not be less than 18 years according to the Islamic calendar.
• His basic registered salary must not be less than 4000 Saudi Riyals, plus the housing allowance.
• To be registered in a full-time job.
• The employee must not be a student.