JEDDAH – Saudi Arabia unveiled Labor Reform Initiative (LRI) on Wednesday to improve the relationship between workers and employers.
Saudi Arabia’s Ministry of Human Resources and Social Development’s Labor Reform initiative intend to establish the Kingdom as an attractive job market for expatriates.
As per the ministry, the LRI reforms will come into effect from March 2021 and will ensure the work environment in the country becomes more efficient.
Saudi Ministry of Foreign Affairs Twitter handle also shared a tweet stating new law,
(@HRSD_SA) launched a labor reforms initiative for private sector workers to enhance the contractual relationship between workers and employers, and aims to establish an attractive job market, empowering and developing labor competencies and developing the work environment pic.twitter.com/kyZJMwEzuq
— Foreign Ministry ???????? (@KSAmofaEN) November 4, 2020
Kingdom introduces similar initiatives including the Wage Protection System, the digital documentation of work contracts, the Labor Education and Awareness Initiative. Employees will be asked to maintain contracts of workers digitally so that there is less disparity between expatriates and Saudi workers.
The newly introduced reform aims to increase the flexibility, effectiveness, and competitiveness of the labour market and raise its appeal with international practices, and attract top talent, the ministry added.
Expatriates will have the freedom to switch between employers without needing their consent. It also outlines key features of the employment provided conditions of employment, such as fulfilment of the notice period and other conditions are met.
The Final Exit Visa reforms permit the workers to travel outside Saudi Arabia without needing the employer’s approval; once their contract has ended. Workers will be allowed to travel outside the Kingdom without needing an employer’s approval after a request has been submitted.
Those who break or do not fulfil the terms of their employment will be liable financially or as per the provisions of their contract. These services will be made available to the people with the smartphone application Absher and (Qiwa) portal of the ministry.
Saudi Arabia intends to improve the efficiency of the private sector and improve the job market in the country so that it can attract the top talent to fulfil the Kingdom’s Vision 2030 through the National Transformation Program.
Saudi Arabia expects the new initiative to have positive economic effects as foreigners make up around 10.5 million of Saudi Arabia’s total population of 34.8 million.
