[Saudi Arabia] Nearly 52,000 expat workers benefit from Labour Reform Initiative

[Saudi Arabia] Nearly 52,000 expat workers benefit from Labour Reform Initiative
10 Sep 2021

Saudi Arabia’s Ministry of Human Resources and Social Development announced that as many as 51,730 foreign workers and 29,175 establishments have benefited from the ministry’s Labor Reform Initiative (LRI) over a period of less than six months, Saudi Gazette reports.

The initiative came into force on March 14 and was intended to improve the contractual relationship between employers and employees. It applies to all expatriate workers in private sector establishments

The LRI provides several services, including job transfer (transfer to another employer), exit/reentry and final exit that are available via Absher and Qiwa platforms. The initiative reportedly seeks to increase the flexibility, effectiveness and competitiveness of the labour market bringing them in line with the best international practices.

The ministry has documented 3,610,880 electronic contracts for about 152,810 establishments since the launch of the electronic contract documentation programme, which contributed to preserving the rights of establishments and their employees, as well as reducing labour disputes and issues.

In the first half of 2021, the ministry took many positive steps related to its work strategy and the Kingdom's Vision 2030 across its various sectors.

In the labour sector, the ministry achieved its self-employment target by 140 per cent; issuing 8,140 work documents, which had a good impact on organising and stimulating self-employment in the Kingdom by creating job opportunities for Saudi men and women.

With regard to increasing workforce participation and inclusiveness, the ministry launched the Updated Nitaqat Program supporting job stability for employees in the private sector, which is expected to generate more than 340,000 jobs by 2024.

It also began implementing the decision to calculate the minimum wage under the Nitaqat Saudization Program and the special categories with a ceiling of SR4,000. This will contribute to enhancing productivity per capita, as it is expected to have a positive impact on increasing the attractiveness of the private sector for Saudis.

The ministry approved making the provision of insurance a mandatory element of domestic labour contracts through issuing an insurance policy for domestic workers who are hired to work in the Kingdom against the risks of non-compliance with the rights and duties either by the employer or the domestic worker.

Additionally, the document covers several benefits; most notably compensation for the employer to meet the expenses for hiring an alternative domestic worker and compensation for the worker in the event of their permanent or partial disability.

The ministry approved the Wage Protection Program for domestic workers through Musaned platform to monitor the wage disbursement process by obliging employers to transfer the wages of domestic workers through several digital and electronic channels.

It also approved an insurance product related to the rights and entitlements of workers in private sector establishments, which aims to guarantee the rights and entitlements of non-Saudi workers in private sector establishments in the event of the failure or inability of their establishments to pay these rights as per the specific benefits spelt out in the insurance policy. The state bears all the costs toward implementing the insurance product program.

The ministry has activated the Business Establishment Support Program through the Qiwa platform, more than 53,000 establishments have so far benefited from it. Under the programme, the process of obtaining work visas has been sped up considerably and now takes less than a day instead of the past average of 9-13 months.

The ministry has also launched a professional verification programme that aims to obligate professional expatriate workers to obtain a professional verification certificate by sitting for practical and theory tests within the Kingdom and abroad.

The ministry has added 120 professions that fall under six new specialisations within the framework of this programme, the first phase of which is being implemented this month.


Source: Saudi Gazette

Saudi Arabia’s Ministry of Human Resources and Social Development announced that as many as 51,730 foreign workers and 29,175 establishments have benefited from the ministry’s Labor Reform Initiative (LRI) over a period of less than six months, Saudi Gazette reports.

The initiative came into force on March 14 and was intended to improve the contractual relationship between employers and employees. It applies to all expatriate workers in private sector establishments

The LRI provides several services, including job transfer (transfer to another employer), exit/reentry and final exit that are available via Absher and Qiwa platforms. The initiative reportedly seeks to increase the flexibility, effectiveness and competitiveness of the labour market bringing them in line with the best international practices.

The ministry has documented 3,610,880 electronic contracts for about 152,810 establishments since the launch of the electronic contract documentation programme, which contributed to preserving the rights of establishments and their employees, as well as reducing labour disputes and issues.

In the first half of 2021, the ministry took many positive steps related to its work strategy and the Kingdom's Vision 2030 across its various sectors.

In the labour sector, the ministry achieved its self-employment target by 140 per cent; issuing 8,140 work documents, which had a good impact on organising and stimulating self-employment in the Kingdom by creating job opportunities for Saudi men and women.

With regard to increasing workforce participation and inclusiveness, the ministry launched the Updated Nitaqat Program supporting job stability for employees in the private sector, which is expected to generate more than 340,000 jobs by 2024.

It also began implementing the decision to calculate the minimum wage under the Nitaqat Saudization Program and the special categories with a ceiling of SR4,000. This will contribute to enhancing productivity per capita, as it is expected to have a positive impact on increasing the attractiveness of the private sector for Saudis.

The ministry approved making the provision of insurance a mandatory element of domestic labour contracts through issuing an insurance policy for domestic workers who are hired to work in the Kingdom against the risks of non-compliance with the rights and duties either by the employer or the domestic worker.

Additionally, the document covers several benefits; most notably compensation for the employer to meet the expenses for hiring an alternative domestic worker and compensation for the worker in the event of their permanent or partial disability.

The ministry approved the Wage Protection Program for domestic workers through Musaned platform to monitor the wage disbursement process by obliging employers to transfer the wages of domestic workers through several digital and electronic channels.

It also approved an insurance product related to the rights and entitlements of workers in private sector establishments, which aims to guarantee the rights and entitlements of non-Saudi workers in private sector establishments in the event of the failure or inability of their establishments to pay these rights as per the specific benefits spelt out in the insurance policy. The state bears all the costs toward implementing the insurance product program.

The ministry has activated the Business Establishment Support Program through the Qiwa platform, more than 53,000 establishments have so far benefited from it. Under the programme, the process of obtaining work visas has been sped up considerably and now takes less than a day instead of the past average of 9-13 months.

The ministry has also launched a professional verification programme that aims to obligate professional expatriate workers to obtain a professional verification certificate by sitting for practical and theory tests within the Kingdom and abroad.

The ministry has added 120 professions that fall under six new specialisations within the framework of this programme, the first phase of which is being implemented this month.


Source: Saudi Gazette

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