HRSD updates employment transfer system of expat employees between sole proprietorships

Logo of the Ministry of Human Resources and Social Development (HRSD)

Saudi Arabia’s Ministry of Human Resources and Social Development (HRSD) implemented an update on “Qiwa Platform” on the expatriate employee’s transfer system between sole proprietorships.

The update is an extension of the ministry’s development of its policies and services in line with the goals of the labor market strategy and to raise its efficiency and the level of labor rights, Saudi Press Agency (SPA) reported citing HRSD ministry.

The new amendment enables the employee transfer to a new employer without moving the accumulated unpaid financial fees by the previous employer, with the new employer required to pay the financial fees from the date the employee is transferred.

This comes in the interest of all parties by stopping the accumulation of unpaid amounts on the current employer, not burdening the new employer with those amounts for an earlier period in which he did not benefit from the services of the employee, as well as contributing to improving the employee’s transfer and raising the level of flexibility of the job transition procedures between enterprises to create an attractive labor market, the ministry added.