• Insights

Additional Details Released on Labor Reform Initiative for the Private Sector

March 23, 2021

insight-news-default

Country / Territory

  • Saudi ArabiaSaudi Arabia

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a Glance

  • The Ministry of Human Resources and Social Development published additional details related to the implementation of the Labor Reform Initiative Program, which went into effect on March 14, 2021.
  • The new details address process requirements for employment sponsorship transfers, Exit Re-Entry Visas and Final Exit Permits.
  • The implementation of the Labor Reform initiative is expected to increase transparency in Saudi Arabia’s employment and immigration environments and allow for greater mobility of workers.

The situation

The Ministry of Human Resources and Social Development (MHRSD) published additional details related to the implementation of the Labor Reform Initiative Program, which went into effect on March 14, 2021.

A closer look

REFORM NEW DETAILS IMPACT

Employment Sponsorship Transfer. Foreign nationals can change employers without their current sponsor’s consent if their employment contract has ended and if they have completed a minimum one year of service, starting from their date of entry to Saudi Arabia.

If these conditions are not met, the individual can still change employers but must obtain approval from the current sponsor; details on exemptions from this requirement can be found here.

Additional requirements. To benefit from the employment sponsorship transfer, employers must meet the prescribed Saudization and Wages Protection System requirements and must comply with the electronic contract registration and self-evaluation programs.

Notice process. The sponsorship transfer process must be initiated by the new employer, who extends a job offer to the foreign national through the Qiwa portal. If the foreign national accepts the job offer, the current employer is notified and the prescribed notice period begins. The sponsorship notice process is complete after the notice period has ended. Employers can reduce the duration of the notice period if both parties agree. If the foreign national rejects the job offer, the transaction is automatically canceled.

  • Employees will have greater flexibility in changing employers in Saudi Arabia. The previous rule always required foreign nationals to obtain consent from their current sponsor, which may have deterred some foreign employees from accepting employment in the country.
  • This rule should also benefit employers since recruitment is less expensive from within Saudi Arabia than from abroad.
  • The new rules should also decrease the number of disputes between employers and workers.

Exit Re-Entry Visa. Foreign nationals no longer need to obtain permission from their employer before traveling internationally. This does not apply to domestic household workers.

Process. Foreign nationals can obtain Exit-Re-Entry Visas for themselves and their dependents through the Absher platform. To initiate the process, all applicants must be in Saudi Arabia, their residence permit must not be expired, their passport must be valid for at least 60 days, and there must be no traffic violations recorded under the applicant’s name. Once the request has been registered, the employer will receive a text message and will have 10 days to raise any objections toward the request with the MHRSD. However, the employer cannot revoke the request directly.

Upon approval, the foreign national must complete the transaction within five days. A single-use Exit Re-Entry Visa valid for 30 days will then be issued. The visa is extendable only by the employer who can also request that the visa have a longer validity and be for multiple entries.

 

 

 

Foreign employees can more easily travel internationally and for longer periods of time since they no longer need to undergo the cumbersome process of obtaining permission from their employer each time they seek to leave. However, foreign nationals should be aware that there are still some benefits to obtaining approval from their employers, such as being able to extend the visa, having it issued with a longer validity or being a multiple-entry visa.

Final Exit Permit. Foreign nationals no longer need to obtain permission from their employer before their final exit from Saudi Arabia. This does not apply to domestic household workers.

Process. The process for obtaining the Final Exit Permit is the same as for obtaining the Exit Re-Entry Visa listed above.

Upon approval, the individual must complete the transaction within five days. A Final Exit Permit valid for 15 days will then be issued, which is shorter than the 60 days if the permit is issued on the employer’s request.

 

Background

The new law is a continuation of other labor reforms that the Saudi government has implemented over the past year to increase oversight of employers and to protect workers’ rights, such as the Wages Protection System and self-evaluation compliance review program. Through these measures, the government seeks to increase transparency in the employment environment to attract foreign investment and foreign nationals. At the same time, the country is seeking to increase employment of its local population by increasing Saudization levels in specific industries.

Looking ahead

The reforms should increase Saudi Arabia’s competitiveness on the global market to attract highly-skilled talent by meeting international standards for labor protections. By fostering an attractive work environment for top talent, Saudi Arabia will be able to continue diversifying its economy away from a heavily oil and gas-reliant sector.

Since these reforms are new, it is expected that the actual processing of applications may be subject to additional changes. Fragomen will report on any developments.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

Country / Territory

  • Saudi ArabiaSaudi Arabia

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Global Mobility Lawyer: An Irish Goodbye: Closure of the Immigrant Investor Pathway and Its Remaining Opportunities

Senior Manager Samantha Arnold examines the remaining opportunities under Ireland’s winding-down Immigrant Investor Programme and what they mean for eligible investors and their families.

Learn more

Blog post

Beyond the UK's Net Migration Decline: What the Data Reveals

Government Affairs Strategy Director Shuyeb Muquit analyses the UK’s latest net migration decline, exploring what the data reveals about policy impact, economic trade‑offs and the risks of over‑correction in future migration strategy.

Learn more

Media mentions

Bloomberg: Trump’s Green-Card Crackdown Sparks Outcry From Confused Lawyers

Partner Bo Cooper discusses the practical considerations facing employers and foreign nationals amid recent changes to green card processing.

Learn more

Blog post

Business Immigration After the Midterms (Part 2): Enforcement, States and Expanding Risk

In this second installment of the Business Immigration After the Midterms series, Partner K. Edward Raleigh explores how post‑election enforcement risks for employers are expanding beyond federal agencies to include states, Congress, private plaintiffs and AI‑driven scrutiny, reshaping how workforce decisions are evaluated and challenged.

Learn more

Video

Full-Time | #FragomenFC - Ep.18

In this #FragomenFC episode, Partner Rick Lamanna, Senior Manager Sergio Flores and Senior Associate Jake Paul Minster discuss final travel and immigration considerations ahead of the 2026 FIFA World Cup.

Learn more

Media mentions

The New York Times: What Ireland and Germany Can Teach Us About Birthright Citizenship

Senior Manager Samantha Arnold discusses Ireland's citizenship framework and the gaps that can remain following reforms to birthright citizenship.

Learn more

Video

Sponsor Guide: Brazil Family Reunion Visa Essentials

In this video, Partner Diana Quintas discusses how Brazil’s family reunion visa supports long-term international assignments and outlines key eligibility, documentation and compliance considerations for employers and families relocating to Brazil.

Learn more

Blog post

Immigration and Employment in Chile: Legal Requirements for Foreign Workers

Attorney María José Clarke explores Chile’s intensified immigration enforcement framework under President José Antonio Kast, examining new employer compliance obligations, work authorization rules for foreign nationals and the legal and financial consequences of unauthorized employment.

Learn more

Media mentions

The PIE: New UKVI Compliance Metrics for Universities Take Effect Today

Senior Manager Jonathan Hill examines how the UK's new RAG rating system and stricter compliance metrics could shape universities' approaches to international student recruitment and sponsorship compliance.

Learn more

Blog post

EU Inc. Signals a Shift: Why Immigration Will Matter to Europe’s New Corporate Agenda 

Knowledge Management Director Ana Sofia Walsh and Senior Client Engagement Manager Soraya Driessen examine the European Commission’s EU Inc. proposal and its potential to reshape corporate structures across the EU, highlighting the resulting complexities and unresolved questions for immigration, work authorization and cross-border workforce mobility.

Learn more

Video

Less Than Two Weeks: FIFA World Cup 2026 Countdown | #MobilityMinute

With less than two weeks until the first match of the 2026 FIFA World Cup, Senior Associate Jake Paul Minster outlines important visa and entry considerations for travelers planning to visit the US, Canada and Mexico.

Learn more

Media mentions

The National: Companionship Scheme Addresses Loneliness Among Elderly as UAE Population Ages

Partner Ali Haider discussed how flexible residency pathways, strong infrastructure and access to healthcare are continuing to drive interest among retirees looking to relocate to the UAE.

Learn more

Media mentions

Global Mobility Lawyer: An Irish Goodbye: Closure of the Immigrant Investor Pathway and Its Remaining Opportunities

Senior Manager Samantha Arnold examines the remaining opportunities under Ireland’s winding-down Immigrant Investor Programme and what they mean for eligible investors and their families.

Learn more

Blog post

Beyond the UK's Net Migration Decline: What the Data Reveals

Government Affairs Strategy Director Shuyeb Muquit analyses the UK’s latest net migration decline, exploring what the data reveals about policy impact, economic trade‑offs and the risks of over‑correction in future migration strategy.

Learn more

Media mentions

Bloomberg: Trump’s Green-Card Crackdown Sparks Outcry From Confused Lawyers

Partner Bo Cooper discusses the practical considerations facing employers and foreign nationals amid recent changes to green card processing.

Learn more

Blog post

Business Immigration After the Midterms (Part 2): Enforcement, States and Expanding Risk

In this second installment of the Business Immigration After the Midterms series, Partner K. Edward Raleigh explores how post‑election enforcement risks for employers are expanding beyond federal agencies to include states, Congress, private plaintiffs and AI‑driven scrutiny, reshaping how workforce decisions are evaluated and challenged.

Learn more

Video

Full-Time | #FragomenFC - Ep.18

In this #FragomenFC episode, Partner Rick Lamanna, Senior Manager Sergio Flores and Senior Associate Jake Paul Minster discuss final travel and immigration considerations ahead of the 2026 FIFA World Cup.

Learn more

Media mentions

The New York Times: What Ireland and Germany Can Teach Us About Birthright Citizenship

Senior Manager Samantha Arnold discusses Ireland's citizenship framework and the gaps that can remain following reforms to birthright citizenship.

Learn more

Video

Sponsor Guide: Brazil Family Reunion Visa Essentials

In this video, Partner Diana Quintas discusses how Brazil’s family reunion visa supports long-term international assignments and outlines key eligibility, documentation and compliance considerations for employers and families relocating to Brazil.

Learn more

Blog post

Immigration and Employment in Chile: Legal Requirements for Foreign Workers

Attorney María José Clarke explores Chile’s intensified immigration enforcement framework under President José Antonio Kast, examining new employer compliance obligations, work authorization rules for foreign nationals and the legal and financial consequences of unauthorized employment.

Learn more

Media mentions

The PIE: New UKVI Compliance Metrics for Universities Take Effect Today

Senior Manager Jonathan Hill examines how the UK's new RAG rating system and stricter compliance metrics could shape universities' approaches to international student recruitment and sponsorship compliance.

Learn more

Blog post

EU Inc. Signals a Shift: Why Immigration Will Matter to Europe’s New Corporate Agenda 

Knowledge Management Director Ana Sofia Walsh and Senior Client Engagement Manager Soraya Driessen examine the European Commission’s EU Inc. proposal and its potential to reshape corporate structures across the EU, highlighting the resulting complexities and unresolved questions for immigration, work authorization and cross-border workforce mobility.

Learn more

Video

Less Than Two Weeks: FIFA World Cup 2026 Countdown | #MobilityMinute

With less than two weeks until the first match of the 2026 FIFA World Cup, Senior Associate Jake Paul Minster outlines important visa and entry considerations for travelers planning to visit the US, Canada and Mexico.

Learn more

Media mentions

The National: Companionship Scheme Addresses Loneliness Among Elderly as UAE Population Ages

Partner Ali Haider discussed how flexible residency pathways, strong infrastructure and access to healthcare are continuing to drive interest among retirees looking to relocate to the UAE.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
June 3, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
June 4, 2026 | IrelandGlobal Mobility Lawyer: An Irish Goodbye: Closure of the Immigrant Investor Pathway and Its Remaining Opportunities
June 4, 2026 | 🌐Minimum Salary Changes Announced
June 3, 2026 | United StatesBloomberg: Trump’s Green-Card Crackdown Sparks Outcry From Confused Lawyers
June 3, 2026 | CanadaCanada: Ontario Advances Overhaul of Provincial Nominee Program
June 3, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
June 4, 2026 | IrelandGlobal Mobility Lawyer: An Irish Goodbye: Closure of the Immigrant Investor Pathway and Its Remaining Opportunities
June 4, 2026 | 🌐Minimum Salary Changes Announced
June 3, 2026 | United StatesBloomberg: Trump’s Green-Card Crackdown Sparks Outcry From Confused Lawyers
June 3, 2026 | CanadaCanada: Ontario Advances Overhaul of Provincial Nominee Program
June 3, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.