Saudi Arabia officially announces the abolition of the sponsorship system next March
The Ministry of Human Resources and Social Development in the Kingdom of Saudi Arabia has officially announced the launch of the initiative "to improve the contractual relationship", which includes a number of policies and controls, including the approval of the labor contract system between the employer and the expatriate worker to replace the sponsorship system that has been applied for 72 years, according to what it mentioned Emirates newspaper Al Bayan in a report today, Wednesday.
The initiative includes granting expatriates the freedom to change jobs and leave the Kingdom without permission from the employer.
The Deputy Minister of Human Resources in Saudi Arabia, Abdullah bin Nasser Abu Nassin, said that the Kingdom will ease contractual restrictions for expatriate workers, including the freedom to change jobs, and grant foreign workers the right to leave the Kingdom without the permission of the employer, provided that it will take effect on March 14, 2021.
For its part, the Saudi Press Agency (SPA) said that this initiative comes as part of its endeavor to improve and raise the efficiency of the work environment, and to complement its previous efforts in this field, through the launch of several programs, the most important of which are the program of protecting workers' wages in the private sector, the program of electronic contract documentation, and the raising program Awareness of labor culture and the "Wady" program for settling labor disputes, as well as adopting the insurance program for workers 'rights, launching a system of elected workers' committees, and other programs concerned with developing and improving the work environment and protecting the rights of all parties to the contractual relationship.
The "Improving the Contractual Relationship" initiative seeks to increase the flexibility, effectiveness and competitiveness of the labor market, and raise its attractiveness in line with international best practices. This initiative comes to activate the contractual reference in the labor relationship between the employer and the worker based on the work contract documented between them through the contract documentation program, which contributes to In reducing the disparity in the contractual procedures of the Saudi worker versus the expatriate worker, which will be reflected in the increase in employment opportunities for citizens in the labor market and the attraction of competencies.
The job mobility service allows the expatriate worker to transfer to another job upon the end of his work contract without the need for the employer's approval, and the initiative also defines the mechanisms of transfer during the validity of the contract, provided that the notice period and the specified controls are adhered to, and the exit and return service allows the expatriate worker to travel outside the Kingdom upon submitting the application with notice of the owner Work electronically, while the final exit service enables the expatriate worker to leave immediately after the end of the contract with an electronic notification of the employer without requiring his approval, in addition to the possibility of leaving the Kingdom with the worker bearing all the consequences of the termination of the contract, noting that all these services will be available through the platform. Absher "and" Goui "platform of the Ministry of Human Resources and Social Development.
The “Improvement of Contractual Relationship” initiative enhances the competitiveness of the Saudi labor market with global labor markets and raises its classification in indicators of international competitiveness. This initiative raises labor policies in accordance with internationally agreed labor relations practices. It will also lead to the reduction of labor disputes that sometimes arise due to non Agreement by the parties to the contractual relationship, and it will also contribute to empowering and developing human capital, and attracting competencies in the labor market.
It is expected that the initiative to "improve the contractual relationship" will have positive economic effects, including: the flexibility and development of the labor market, raising the productivity of the private sector, attracting highly skilled talent, and contributing to achieving the goals of the Kingdom's Vision 2030 program through the "National Transformation" program.
It is worth noting that this initiative was developed in partnership with the Ministry of the Interior and the National Information Center and with the support of other government agencies, after holding many meetings with the private sector and the Council of Saudi Chambers and based on studies and research that included international best practices in this field.
