The Ministry of Human Resources and Social Development launches the "Improving the Contractual Relationship" initiative for workers in private sector establishments

On Wednesday, November 4, 2020, the Ministry of Human Resources and Social Development launched the initiative to improve the contractual relationship, one of the initiatives of the National Transformation Program, which aims to support the ministry's vision of building an attractive labor market, empowering and developing human competencies, and developing the work environment. Job mobility, development of mechanisms for exit, return, and final exit. The initiative's services include all expatriate workers in private sector establishments within specific controls that take into account the rights of both parties to the contractual relationship, provided that the initiative enters into force on March 14, 2021.

The Ministry of Human Resources and Social Development stated that this initiative comes as part of its endeavor to improve and raise the efficiency of the work environment, and as a continuation of its previous efforts in this field, by launching several programs, the most important of which are the program to protect the wages of workers in the private sector, the electronic contract documentation program, and the program to raise awareness of labor culture. And the “Wadi” program for settling labor disputes, as well as the adoption of the Workers’ Rights Insurance Program, the launch of the elected labor committees system, and other programs concerned with developing and improving the work environment and protecting the rights of all parties to the contractual relationship.

The "Improving the Contractual Relationship" initiative seeks to increase the flexibility, effectiveness and competitiveness of the labor market, and raise its attractiveness in line with international best practices. In reducing the discrepancy in the contractual procedures for the Saudi worker compared to the expatriate worker, which will be reflected in increasing the employment opportunities for citizens in the labor market and attracting competencies.

The job mobility service allows the expatriate worker to move to another job at the end of his work contract without the need for the employer’s approval. The initiative also identifies the transition mechanisms during the validity of the contract, provided that the notice period and specified controls are adhered to. Work electronically, while the final exit service enables the expatriate worker to leave immediately after the end of the contract with a notice to the employer electronically without requiring his approval, in addition to the possibility of leaving the Kingdom with the worker bearing all the consequences of terminating the contract, noting that all these services will be available through the "platform" Absher" and the "Power" platform of the Ministry of Human Resources and Social Development.

The "Improving the Contractual Relationship" initiative enhances the competitiveness of the Saudi labor market with global labor markets and raises its classification in international competitiveness indicators. The agreement of the parties to the contractual relationship, and it will also contribute to empowering and developing human capital, and attracting competencies in the labor market.

It is expected that the "improving the contractual relationship" initiative will have positive economic effects, including: the flexibility and development of the labor market, raising the productivity of the private sector, attracting highly skilled talent, and contributing to achieving the goals of the Kingdom's Vision 2030 program through the "National Transformation" program.

It is worth noting that this initiative was developed in partnership with the Ministry of Interior and the National Information Center and with the support of other government agencies, after holding many meetings with the private sector and the Council of Saudi Chambers and based on studies and research that included international best practices in this field.