Saudi Arabia formally abolished the “sponsor” system and adopted a new system for decades.



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11:51 a. M.

Wednesday 04 November 2020

I wrote – Yasmine Selim:

On Wednesday, the Ministry of Human Resources and Social Development of Saudi Arabia launched an initiative to improve the contractual relationship of expatriate workers in the private sector, which would abolish the sponsorship system, to begin its implementation on March 14.

The ministry said in a post on its official page on Twitter that the initiative consists of 3 main services, which are the labor mobility service, the development of exit and return mechanisms, and the final exit of the worker.

The initiative includes all expatriate workers in private sector establishments within specific controls that take into account the rights and parts of the contractual relationship, as long as the initiative takes effect on March 14, according to the ministry.

The ministry said the initiative seeks to improve the contractual relationship to increase the flexibility, effectiveness and competitiveness of the labor market, and increase its attractiveness.

The ministry said that the migrant worker’s labor mobility service allows the transfer to another position at the expiration of their employment contract without the need for the employer’s approval, and the initiative also defines the transfer mechanisms during the term of the contract, provided that the notice period and the specified controls are met.

The departure and return service allows a migrant worker to travel outside the Kingdom by submitting the application with an electronic notification to the employer.

The ministry said that the final exit service for a migrant worker will allow him to leave the Kingdom, while the worker will bear all the consequences of terminating the contract.

The ministry stated that all services will be provided through the “Absher” platform and the ministry’s “Qiwa” platform.

The ministry expects the initiative to have positive economic effects, including flexibility and labor market development, raising private sector productivity and attracting highly skilled talent.

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