In the latest development, The Ministry of Human Resources and Social Development (MHRSD) launched a Labor Reform Initiative (LRI) aiming to establish an attractive job market, empowering the labor force and developing a healthy work environment in the Kingdom.
The new reforms allow job transfers and ease in the Exit Re-Entry Visa issuance. It applies to all expatriate workers in the private sector and contains special measures to protects the rights of the employees and the companies / kafeels.
Now,The Exit Re-Entry Visa reforms allow the expat workers to travel outside Saudi Arabia without the sponsor’s approval after submitting a request: the organization / kafeel will be notified electronically of their departure.
The Final Exit Visa reforms allow the worker to leave the Kingdom after the end of the job contract without the employer’s consent. And the company will be notified electronically. However, the worker will bear the fines, penalties, and other consequences in case of breaking or violating the employment contract.
A very robust and most demanding rule is also introduced. Now, the expat workers can switch to other companies at the end of the contract without the consent of the previous employer.
After the implementation of the new reforms, all the contracts will be digitalized. thus reducing the disputes between the employers and the employees.
The LRI (Labour Reforms Initiatives) will surely enhance the competitiveness of the Saudi labor market and putting it on par with international markets.
As a part of LRI, a new Portal “Wedy” is launched. Its purpose is to handle the disputes between the workers and the sponsors. So it will surely help in reducing the mutual conflicts.
LRI is introduced through very close collaboration with the Ministry of Interior, the National Information Center, and with the support of several other government agencies.
It was achieved after several meetings and workshops with the private sector representatives, the council of Saudi chambers. It is crafted after lots of studies and research including the best international practices.
The LRI comes into effect on March, 14 2021
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