SAUDI ARABIA

MHRSD allows job transfer of foreign workers in all private firms

Second phase of amended job transfer mechanism comes into force

September 07, 2022



Okaz/Saudi Gazette

DAMMAM The Ministry of Human Resources and Social Development (MHRSD) has started implementing the second phase of the amended mechanism for the job transfer of foreign workers, Okaz/Saudi Gazette has learnt from the ministry sources.

Under the second phase, the ministry allowed job transfer of foreign workers in all private sector establishments whereas in the first phase, the ministry permitted transfer of workers between individual establishments only.

The ministry made an update on the system for the job transfer of workers through the Qiwa platform in order to ease the switch over of a foreign worker to a new employer. The sources at the ministry confirmed that the second phase of updating the system came as an extension of the development of the ministry’s policies and services in line with the objectives of the labor market strategy, raising its efficiency and the level of labor rights.

The updated system enables the new employer not to bear the outstanding government fees of workers who are transferring their services to these facilities, and that these arrears have to be borne by the previous employer. Under the updated system, the new employer needs to pay the government fee effective from the date of the transfer of service of the worker to his establishment.

The ministry stressed that the updating would also contribute to stopping the accumulation of unpaid amounts on the current employer, and not to burden the new employer with the arrears from the previous period in which he did not benefit from the worker’s services.

According to the ministry, the update will also be instrumental in improving the worker’s career journey and raising the level of flexibility of job transfer procedures between establishments to create an attractive labor market.

It is noteworthy that the ministry had decided a few months ago to exempt private sector companies and establishments from bearing the outstanding government fees of workers who are transferring their services to these facilities effective from June 9. According to the ministry decision, the company or establishment from where the worker is seeking transfer of service has to bear the outstanding government dues, including work permit fee, expatriate fee (financial compensation), and fines for the delay in the renewal of residency permit (iqama).

The ministry’s Qiwa platform has begun activating the decision of charging these fees from the workers’ previous employers. The decision aims to enable new enterprises to carry out their businesses without unexpected financial obligations.

Under the previous mechanism, the establishments, which are seeking the transfer of service of workers, had to bear the outstanding fees for work permits, expatriate levy and fines for the delay in the renewal of iqama.

The Qiwa platform enables the labor sector to access all its services with a unified access, with the aim of creating an integrated and competitive labor market that achieves the objectives of the employment market strategy.


September 07, 2022
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