Manama: Saudi Arabia unveiled significant labour reforms that will allow expat workers to switch jobs and leave the country without an employer's permission.
The reforms, called as the Labor Relation Initiative (LRI), considered as a radical change in the existing sponsorship (Kafala) system as it would ease some of the contractual restrictions.
The new policy will take effect on March 14, 2021 and would apply to all expatriates employed in the private sector.
The Ministry of Human Resources and Social development said on Wednesday that the new initiatives aim to augment the contractual relationship between workers and employers and help to establish an attractive job market in the kingdom.
Employee mobility will allow expat workers to transfer between employers upon the expiry of the work contract without the employer’s approval. At present, they cannot change from one job to another.
The exit and re-entry visa reforms abolished the condition of the employer's consent for leaving or re-entering the country. Currently, foreign workers need their employer's permission to leave Saudi. Under the new policy, they will be allowed to go abroad without the employers’ consent after submitting a request, the ministry explained. However, the employer will be notified electronically of their departure.
The final exit visa reforms will allow workers to leave the kingdom after the end of the employment contract without the consent of the employer. They will also be able to apply directly for government services. And their contracts with their employers will be documented digitally, ministry said in a statement.
The reforms will feature specific control measures heeding rights of both parties of the contractual relationship, the statement said. Hence, it outlined conditions set forth in the employee's employment contract, including the notice period. Those who break the labour contract must bear all consequences, including financial, relating to their agreement, the ministry said.
The ministry said that the new initiatives seek to increase flexibility, effectiveness and competitiveness of the labour market in the kingdom.
It is not clear whether this reform would apply to migrant domestic workers or not.
According to Saudi Arabia's Deputy Minister Abdullah bin Nasser Abuthnain, the reforms in the labour system will potentially affect around a third of the country's total population. Foreigners make up around 1.05 crore of Saudi’s total population of 3.48 crore.
