The Ministry of Human Resources and Social Development in Saudi Arabia has announced the commencement of Phase Two of recognizing documented labor contracts as enforceable documents. This phase includes fixed-term labor contracts when updated or renewed, as part of the ministry's efforts to enhance the reliability of contractual relationships and improve the efficiency of procedures related to protecting the rights of all parties involved.
Phase Two targets fixed-term labor contracts, while Phase Three will include indefinite-term labor contracts. This allows establishments and employees to gradually adapt to the new procedures. The ministry clarified that benefiting from the enforceable document requires documenting or updating the labor contract through the Qiwa platform and obtaining an execution number from the Documentation Center at the Ministry of Justice.
Details of the Initiative
If an employee does not receive their full salary within 30 days from the due date, or receives a partial salary after 90 days, they can submit an electronic execution request through the Najiz platform. The employer must submit an objection within five days from the notification date. The ministry, in cooperation with the Ministry of Justice, began Phase One of recognizing documented labor contracts as enforceable documents starting from October 2025.
This step allows the use of the wage clause in contracts for direct execution through the Najiz platform, bypassing lengthy judicial procedures in payment-related disputes. The ministry emphasized the importance for all establishments to document and update contracts by accessing their accounts on the Qiwa platform, and urged all employers and employees to review the guidance available on its website, which outlines the regulations, procedures, eligible categories, and application process.
Background & Context
This initiative is part of the Saudi government's efforts to improve the work environment and enhance transparency in contractual relationships. The Kingdom has witnessed significant changes in the labor market in recent years, as the government seeks to achieve Vision 2030, which aims to diversify the economy and improve the quality of life.
Documented labor contracts are a crucial part of these efforts, aiming to reduce disputes between workers and employers and enhance trust in contractual relationships. The adoption of the documented contract as an enforceable tool reflects the government's commitment to providing a fair and transparent work environment.
Impact & Consequences
This step is expected to improve the relationship between workers and employers, providing them with legal tools to protect their rights. It will also help reduce legal disputes, contributing to stability in the labor market.
Moreover, this new system may attract more foreign investments to the Kingdom, as a fair and transparent work environment is a key factor in attracting investors. Consequently, this initiative could contribute to enhancing economic growth and achieving the Kingdom's developmental goals.
Regional Significance
This step serves as a model that can be emulated in other countries in the region, where many Arab countries face issues in the labor market, including legal disputes between workers and employers. This initiative can help promote transparency and trust in contractual relationships in other Arab countries.
Furthermore, enhancing and protecting workers' rights is a fundamental part of sustainable development, reflecting the importance of such initiatives in improving economic and social conditions in the region.