Important Updates
Important Updates
April 1, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
April 2, 2026 | CanadaCanada: New Recruitment Requirements for Low‑Wage Positions under Temporary Foreign Worker Program
April 1, 2026 | United StatesBloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers
April 1, 2026 | CanadaCanada: Permanent Residence and Citizenship Filing Fees Increased
April 1, 2026 | United KingdomCare Talk Business: What the Casey Commission Means for Social Care’s Workforce
April 1, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
April 2, 2026 | CanadaCanada: New Recruitment Requirements for Low‑Wage Positions under Temporary Foreign Worker Program
April 1, 2026 | United StatesBloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers
April 1, 2026 | CanadaCanada: Permanent Residence and Citizenship Filing Fees Increased
April 1, 2026 | United KingdomCare Talk Business: What the Casey Commission Means for Social Care’s Workforce
April 1, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
Subscribe
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
  • 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

Work authorization

EU Entry/Exit System (EES) and Schengen Overstays: New Risks and Legal Solutions

Senior Associate Tugba Ozyakup and Senior Immigration Manager Andreia Ghimis explore how the EU’s Entry/Exit System is reshaping Schengen overstay enforcement, the risks facing travellers and employers and the legal remedies available to challenge or prevent adverse outcomes.

Learn more

Video

Welcome to the Great White North—Immigration Behind the Beautiful Game | #FragomenFC - Ep. 16

Partner Rick Lamanna, Senior Associate Jake Paul Minster and Senior Manager Sergio Flores discuss Canada’s entry requirements for the 2026 FIFA World Cup, including visa-required and visa-exempt nationals, visitor entry rules and key planning considerations for fans, teams, media and volunteers.

Learn more

Media mentions

Bloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers

Partner Kevin Miner discusses the DOL’s proposed H-1B wage rule and its potential to add significant unplanned costs for US employers.

Learn more

Media mentions

Care Talk Business: What the Casey Commission Means for Social Care’s Workforce

Manager Asif Hanif, Senior Immigration Consultant Georgia Marshall and Immigration Consultant Inderjit Kaur examine how the Casey Commission could reshape workforce models, immigration policy and international recruitment in UK adult social care.

Learn more

Video

Staatsangehörigkeit Allgemein | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key pathways to German citizenship, including descent-based eligibility and standard naturalization requirements and outlines important considerations for individuals exploring their options.

Learn more

Media mentions

The Caterer: How to Safeguard Your Sponsor Licences

Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.

Learn more

Media mentions

Times of India: US Proposes Sharp Hike in H-1B, PERM Wage Thresholds; May Adversely Impact Entry-Level Hiring

Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.

Learn more

Work authorization

Falling Demand, Rising Fees: Reassessing the UK’s 2026 Immigration Policy

UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.

Learn more

Video

FIFA Pass for the 2026 World Cup | #MobilityMinute

Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.

Learn more

Media mentions

RNZ Asia: Immigration Experts Divided Over Skilled Migrant Residency Reform

Business Immigration Supervisor Fiona Zhou says the restructured Skilled Migrant Category creates clearer pathways and retains skilled workers.

Learn more

Video

Navigating Outbound Services from Germany | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support. 

Learn more

Video

Post-Graduation Work Permit (PGWP) | Staying in Canada Post-Graduation

Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).

Learn more

Work authorization

EU Entry/Exit System (EES) and Schengen Overstays: New Risks and Legal Solutions

Senior Associate Tugba Ozyakup and Senior Immigration Manager Andreia Ghimis explore how the EU’s Entry/Exit System is reshaping Schengen overstay enforcement, the risks facing travellers and employers and the legal remedies available to challenge or prevent adverse outcomes.

Learn more

Video

Welcome to the Great White North—Immigration Behind the Beautiful Game | #FragomenFC - Ep. 16

Partner Rick Lamanna, Senior Associate Jake Paul Minster and Senior Manager Sergio Flores discuss Canada’s entry requirements for the 2026 FIFA World Cup, including visa-required and visa-exempt nationals, visitor entry rules and key planning considerations for fans, teams, media and volunteers.

Learn more

Media mentions

Bloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers

Partner Kevin Miner discusses the DOL’s proposed H-1B wage rule and its potential to add significant unplanned costs for US employers.

Learn more

Media mentions

Care Talk Business: What the Casey Commission Means for Social Care’s Workforce

Manager Asif Hanif, Senior Immigration Consultant Georgia Marshall and Immigration Consultant Inderjit Kaur examine how the Casey Commission could reshape workforce models, immigration policy and international recruitment in UK adult social care.

Learn more

Video

Staatsangehörigkeit Allgemein | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key pathways to German citizenship, including descent-based eligibility and standard naturalization requirements and outlines important considerations for individuals exploring their options.

Learn more

Media mentions

The Caterer: How to Safeguard Your Sponsor Licences

Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.

Learn more

Media mentions

Times of India: US Proposes Sharp Hike in H-1B, PERM Wage Thresholds; May Adversely Impact Entry-Level Hiring

Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.

Learn more

Work authorization

Falling Demand, Rising Fees: Reassessing the UK’s 2026 Immigration Policy

UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.

Learn more

Video

FIFA Pass for the 2026 World Cup | #MobilityMinute

Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.

Learn more

Media mentions

RNZ Asia: Immigration Experts Divided Over Skilled Migrant Residency Reform

Business Immigration Supervisor Fiona Zhou says the restructured Skilled Migrant Category creates clearer pathways and retains skilled workers.

Learn more

Video

Navigating Outbound Services from Germany | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support. 

Learn more

Video

Post-Graduation Work Permit (PGWP) | Staying in Canada Post-Graduation

Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).

Learn more

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
  • 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.