KSA unveils major reforms in Sponsorship laws: Domestic workers exempted

Saudi Arabia's Ministry of Human Resources and Social Development (HRSD) has officially announced the launch of Labour Reform Initiative (LRI) which will come into effect on 14 March 2021. The initiative includes three key amendments such as transfer of job, process of exit and reentry, and final exit.

However, an Arab news source unveiled that the initiative will not include professions of domestic works such as private drivers, security guards, housekeepers, shepherds or gardeners.

Job transfer reform will allow expatriate workers to shift their sponsorship from one to another. The process can be done without employer's consent once the employee completes the tenure of his work contract. The exit and reentry service allows the worker to travel outside the Kingdom once he files an official request without consent of the sponsor. While the final exit reforms enable foreign workers to leave the kingdom immediately after the end of the contract without requiring employer's consent. The worker will bear all consequences incase of violation of the contract on his part.

Other initiatives include the wage protection system, the digital documentation of work contracts, the Labour Education and Awareness Initiative, launch of "Wedy" for the settlement of labour disputes.

LRI is launched under the National Transformation Program (NTP) and is expected to bring positive economic impacts such as resilience and development of the labour market, the increase the productivity of private sector and recruitment of skilled workers.