The Saudi Ministry of Human Resources and Social Development has announced a new update to the compliance requirements for documenting work contracts through the Qiwa platform. The target compliance rate has been raised to 85% starting from April 30, 2026, followed by a second phase to increase the rate to 90% by June 30, 2026.
The ministry clarified that the compliance rate is calculated by comparing the number of documented contracts with the total number of employee contracts in each establishment, allowing employers to monitor their performance with precision and clarity. This update is part of the ministry's efforts to enhance compliance with labor regulations and increase transparency while protecting the rights of all parties in the contractual relationship.
Event Details
The ministry has urged all establishments to review undocumented work contracts and complete the documentation procedures through the Qiwa platform to ensure the required compliance rate is achieved. The ministry also emphasized that non-compliance may lead to difficulties in accessing services related to compliance indicators.
The Qiwa platform is one of the modern tools launched by the Ministry of Human Resources to facilitate labor-related procedures, aiming to improve the work environment and enhance transparency between employers and employees.
Background & Context
This step comes within the framework of Saudi Vision 2030, which aims to improve the economic and social performance in the country. The government seeks to enhance transparency and compliance in the labor market, contributing to an improved work environment and attracting investments.
Historically, many establishments have faced challenges in documenting work contracts, negatively impacting workers' rights. Therefore, these new measures aim to address those issues and provide a safer and more transparent work environment.
Impact & Consequences
These updates are expected to improve the level of compliance in the labor market, which will enhance workers' rights and increase investor confidence in the Saudi market. Raising the compliance rate will also contribute to reducing legal disputes related to work contracts.
Furthermore, this step may help improve Saudi Arabia's ranking in ease of doing business indicators, reflecting the government's commitment to developing the work environment and enhancing workers' rights.
Regional Significance
This step serves as a model for other countries in the region, as it may inspire other nations to adopt similar policies aimed at enhancing transparency and protecting workers' rights. Improving the work environment in Saudi Arabia could attract more foreign investments, benefiting the Arab economy as a whole.
In conclusion, this update from the Ministry of Human Resources and Social Development demonstrates the Kingdom's commitment to improving the work environment and enhancing workers' rights, reflecting a comprehensive vision aimed at achieving sustainable development.