Saudi Gazette report

RIYADH — Saudi Arabia’s higher authorities have issued an order entrusting five government entities to coordinate among themselves regarding the implementation of the new regulation for issuing and renewing residency permit (iqama) of expatriates on a quarterly basis.

This follows the approval of the Council of Ministers on Jan. 26 for the issuance and renewal of iqamas linked to work permits for a minimum period of three months.

The higher authorities have instructed that Minister of Interior should determine the date for the start of implementing the Cabinet decision and that is after reaching an agreement with Minister of Human Resources and Social Development and the Chairman of the Saudi Data and Artificial Intelligence Authority (SDAIA).

These three entities shall also to coordinate with the Ministry of Finance and the Non-Oil Revenues Development Center to take the necessary measures regarding the issuance of iqamas linked to work permits with the possibility of implementation in phases, in accordance with the technical preparations in this regard, Al-Madinah newspaper reported.

According to the Cabinet decision, the renewal of iqamas on a minimum quarterly basis instead of the existing system of annual basis, is not applicable to domestic workers and those holding similar professions.

The fees, which include the fee for work permit, issuance fee for iqama, expat levy and dependent fee, can be split up and paid based on the duration of the issued and renewed permits.

It is noteworthy that the Ministry of Human Resources has proposed some draft amendments in the Labor Law, under which the employer shall have to pay a full month of salary as compensation for each year of service of the employee in the event of the employer terminates the labor contract, which is for an unspecified period of time.

The employer has to pay the wage for the remaining period of the contract if it is for a specified period of time.

On the other hand, if the employee wants to end the contract, then he has to pay half month compensation for each year of service and the wage for the remaining period of the contract. The compensation should not be less than wage of two months.