New Saudi labour rule: Workers now have 60 day window to re-sign, transfer jobs, or exit country

TL;DR:

• The Qiwa platform , run by Saudi Arabia ’s Ministry of Human Resources and Social Development ( MHRSD ), now enforces a 60-day grace period before marking an employee as “absent from work.”
  
  
• During this period, disconnected workers can re-contract with their current employer, transfer to a new one, or exit Saudi Arabia.
  
  
• Failure to act within 60 days leads to automatic removal from the employer's records and notification to MHRSD and the Ministry of Interior.
  

As of July 31, 2025, Saudi Arabia’s Qiwa labour platform introduced key updates to employment-contract regulations as per a report by Saudi Gazette . Employers are no longer permitted to mark workers as “absent from work” immediately after contract termination: they must wait at least 60 days, provided the worker’s residence permit (Iqama) remains valid. This change brings greater clarity, fairness, and digital efficiency to workforce management.

How the New Grace-Period Rule Works

• Iqama Validity & Disconnection Criteria

Employers may submit an absence report only if the worker’s Iqama is valid for at least 60 days and there is no active employment contract in place.

• 60-Day Grace Window

Once marked as "disconnected from work", the worker is granted a 60-day period to choose one of the following actions:

Re-sign with the same employer

Transfer sponsorship to a new employer via Qiwa

Exit the Kingdom

If no action is completed by day 60, the worker is automatically classified as “absent from work” and removed from the company's contract database.

Consequences of Inaction & System Notifications

• After the grace period expires, Qiwa triggers automatic notifications to the MHRSD and Ministry of Interior, flagging the worker’s “absent” status for enforcement or penalties.
  
  
• If the termination occurs naturally or via choice, once the notice period ends, the contract is marked as “terminated” in the system. Actual “absence” status only follows after the full grace window.
  

Value Added: Worker & Employer Benefits

• Encourages fair treatment, granting workers time to legalize their status and employers time for due-process.
  
  
• Helps stabilize labor market transitions and reduces the risk of sudden loss of legal residency.
  
  
• Aligns job management with Qiwa’s vision for transparency and data accuracy across digital records.
  
  
• Offers quick access to employment certificates, salary or service documents, via personal Qiwa accounts, supporting career mobility.
  

Broader Context
This update is part of broader labour reforms by MHRSD launched in 2024–25, including standardized dispute settlement rules, salary protection mechanisms, and flexible hiring provisions, supporting the Kingdom's Vision 2030 objective of creating a more transparent, dynamic, and rights-based labour ecosystem.

The introduction of a 60-day grace period on the Qiwa platform institutionalizes a balanced approach to employment status transitions in Saudi Arabia. It prioritizes worker security, procedural clarity, and system integrity by requiring valid Iqama and a contractual grace period before a worker is marked "absent." This rule aligns with the Kingdom’s ongoing labour digitization and modernization efforts and ensures more humane, regulated employer–employee interactions.

By digitalizing absence reporting, notifying authorities automatically, and enabling self-service status correction, Qiwa continues to elevate Saudi Arabia’s labour framework to global standards.

FAQ

• 1. When can an employer report a worker as absent?

Only if the worker has no active contract and the Iqama is valid for at least 60 days.

• 2. What options does a disconnected worker have?

They can re-sign with the same employer, transfer to another via Qiwa, or exit Saudi Arabia within the 60-day window.

• 3. What happens if no action is taken within 60 days?

The worker will be marked "absent from work," removed from employer records, and flagged to MHRSD and Ministry of Interior.

• 4. Can workers generate employment certificates?

Yes, via “Qiwa Individuals,” they can access salary and service certificates to verify current or former roles.

• 5. How does this change align with Vision 2030?

It’s part of broader labour market reforms aimed at digitization, transparency, and rights protection under Saudi Arabia’s workforce development plan.