• 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

Blog post

From Investment to Merit: Malta’s Citizenship Reset

Director Isobel Neilson and Manager Sophie Jo Wasson discuss Malta’s shift from citizenship by investment to merit-based naturalisation and outline what may contribute to a compelling application based on exceptional merit and national interest.

Learn more

Blog post

Right to Work Changes from 1 October 2026: Why Employers Need to Act Now

Partner Naomi Goldshtein discusses the UK Right to Work changes taking effect from 1 October 2026 and what employers should do now to strengthen identity verification, workforce oversight and compliance across direct and extended worker populations.

Learn more

Awards

Senior Associate Tuğba Özyakup Appointed to Dutch Bar Legislative Committee on Immigration Law

Senior Associate Tuğba Özyakup has been appointed to the Dutch Bar’s Legislative Committee on Immigration Law, where she will contribute input and advice on proposed and existing immigration legislation.

Learn more

Media mentions

Global Mobility Lawyer: Fragomen expands US footprint with new Denver office

Fragomen has opened a new Denver office to strengthen its support for Colorado businesses navigating evolving immigration requirements and talent needs.

Learn more

Podcast

Insight & Impact - Episode 2: Why Data Matters

Canada Managing Partner Cosmina Morariu and Senior Director Leah L. Rogal discuss how immigration, demographic, labor market and economic data can help organizations interpret policy developments, anticipate talent needs and make more strategic workforce and mobility decisions.

Learn more

Fragomen news

Fragomen Opens Denver Office, Strengthening Support for Colorado Employers

Fragomen opens a Denver office to expand immigration support for Colorado employers and growing businesses.

Learn more

Video

Ordinary Naturalisation in Switzerland | #MobilityMinute

Manager Mihaela Dumitru discusses key requirements for ordinary naturalisation in Switzerland, including residence, integration, language skills and local knowledge assessments.

Learn more

Blog post

Pre-Settled Status and Absences From the UK: When Could Status Be at Risk?

In this blog, Immigration Consultant Mirela Sartori explains when absences could place status at risk, how the Home Office assesses residence and what to do if you receive a “minded to curtail” notice, which generally requires a response within 28 days.

Learn more

Article

Foreign Birth Registration: Mistakes That Can Delay Irish Citizenship Applications

From documentation gaps and certification errors to missed deadlines, Senior Immigration Consultant Patricia Rezmives highlights 8 common FBR pitfalls and how applicants can avoid them.

Learn more

Blog post

Vous envisagez les États-Unis pour la rentrée prochaine ? C'est le moment de préparer votre visa E-2!

Entrepreneurs français : anticipez votre projet d’installation aux États-Unis avec un visa E-2. Découvrez les étapes clés pour préparer votre investissement, votre demande de visa et le déménagement familial avant la prochaine rentrée scolaire.

Learn more

Media mentions

Biometric Update: Fragomen-SICPA JV Adds IDEMIA Biometrics to Assemble End-to-End Identity Platform

Fragomen and SICPA expand their digital identity platform through a strategic collaboration with IDEMIA Public Security.

Learn more

Blog post

Document Legalization Is Becoming a Global Mobility Compliance Issue: Five Trends Employers Should Watch

In this blog, UAE Consular and Document Services Manager Minu Joseph examines five global legalization trends through a Middle East lens—and outlines how employers can prepare earlier to keep assignments on track.

Learn more

Blog post

From Investment to Merit: Malta’s Citizenship Reset

Director Isobel Neilson and Manager Sophie Jo Wasson discuss Malta’s shift from citizenship by investment to merit-based naturalisation and outline what may contribute to a compelling application based on exceptional merit and national interest.

Learn more

Blog post

Right to Work Changes from 1 October 2026: Why Employers Need to Act Now

Partner Naomi Goldshtein discusses the UK Right to Work changes taking effect from 1 October 2026 and what employers should do now to strengthen identity verification, workforce oversight and compliance across direct and extended worker populations.

Learn more

Awards

Senior Associate Tuğba Özyakup Appointed to Dutch Bar Legislative Committee on Immigration Law

Senior Associate Tuğba Özyakup has been appointed to the Dutch Bar’s Legislative Committee on Immigration Law, where she will contribute input and advice on proposed and existing immigration legislation.

Learn more

Media mentions

Global Mobility Lawyer: Fragomen expands US footprint with new Denver office

Fragomen has opened a new Denver office to strengthen its support for Colorado businesses navigating evolving immigration requirements and talent needs.

Learn more

Podcast

Insight & Impact - Episode 2: Why Data Matters

Canada Managing Partner Cosmina Morariu and Senior Director Leah L. Rogal discuss how immigration, demographic, labor market and economic data can help organizations interpret policy developments, anticipate talent needs and make more strategic workforce and mobility decisions.

Learn more

Fragomen news

Fragomen Opens Denver Office, Strengthening Support for Colorado Employers

Fragomen opens a Denver office to expand immigration support for Colorado employers and growing businesses.

Learn more

Video

Ordinary Naturalisation in Switzerland | #MobilityMinute

Manager Mihaela Dumitru discusses key requirements for ordinary naturalisation in Switzerland, including residence, integration, language skills and local knowledge assessments.

Learn more

Blog post

Pre-Settled Status and Absences From the UK: When Could Status Be at Risk?

In this blog, Immigration Consultant Mirela Sartori explains when absences could place status at risk, how the Home Office assesses residence and what to do if you receive a “minded to curtail” notice, which generally requires a response within 28 days.

Learn more

Article

Foreign Birth Registration: Mistakes That Can Delay Irish Citizenship Applications

From documentation gaps and certification errors to missed deadlines, Senior Immigration Consultant Patricia Rezmives highlights 8 common FBR pitfalls and how applicants can avoid them.

Learn more

Blog post

Vous envisagez les États-Unis pour la rentrée prochaine ? C'est le moment de préparer votre visa E-2!

Entrepreneurs français : anticipez votre projet d’installation aux États-Unis avec un visa E-2. Découvrez les étapes clés pour préparer votre investissement, votre demande de visa et le déménagement familial avant la prochaine rentrée scolaire.

Learn more

Media mentions

Biometric Update: Fragomen-SICPA JV Adds IDEMIA Biometrics to Assemble End-to-End Identity Platform

Fragomen and SICPA expand their digital identity platform through a strategic collaboration with IDEMIA Public Security.

Learn more

Blog post

Document Legalization Is Becoming a Global Mobility Compliance Issue: Five Trends Employers Should Watch

In this blog, UAE Consular and Document Services Manager Minu Joseph examines five global legalization trends through a Middle East lens—and outlines how employers can prepare earlier to keep assignments on track.

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 InsightsView 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
  • 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
September 10, 2026 | NetherlandsSenior Associate Tuğba Özyakup Appointed to Dutch Bar Legislative Committee on Immigration Law
September 11, 2026 | New ZealandNew Zealand: New Work Visa Options for Graduates Announced
September 10, 2026 | CanadaCanada: United Kingdom Added to CPTPP Work Permit Provisions
September 10, 2026 | IrelandIreland: Government Proposes Significant Amendments to Naturalisation Legislation
September 10, 2026 | New ZealandNew Zealand: Rules on Investor Visa Relaxed
September 10, 2026 | NetherlandsSenior Associate Tuğba Özyakup Appointed to Dutch Bar Legislative Committee on Immigration Law
September 11, 2026 | New ZealandNew Zealand: New Work Visa Options for Graduates Announced
September 10, 2026 | CanadaCanada: United Kingdom Added to CPTPP Work Permit Provisions
September 10, 2026 | IrelandIreland: Government Proposes Significant Amendments to Naturalisation Legislation
September 10, 2026 | New ZealandNew Zealand: Rules on Investor Visa Relaxed
September 10, 2026 | NetherlandsSenior Associate Tuğba Özyakup Appointed to Dutch Bar Legislative Committee on Immigration Law
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.