The reform is designed for Saudi employers and expat workers seeking clarity and time to act:
- Local HR teams managing compliant offboarding, transfers, and exits
- Lawfully documented workers navigating moves between Saudi employers
- Expats whose contracts have ended and need time to exit the Kingdom
How the 60-day grace period works
Implemented via the MHRSD’s digital platform, Qiwa, a worker’s grace period begins after their contract ends and their Qiwa status is updated to “disconnected from work”. During the ensuing 60-day period, they may:
- Transfer sponsorship to a new employer, via Qiwa
- Re-sign with the current employer
- Legally exit Saudi Arabia
If no action is taken within 60 days, Qiwa flags the worker as “absent from work,” notifying both MHRSD and the Ministry of Interior and formally concluding the employment relationship.
How the grace period benefits employers
The grace period helps employers reduce the risk of legal claims and violations, streamline HR processes and minimise workforce disruption.
Using the Qiwa platform, they can:
- Closely monitor contract end dates by tracking staff contract expirations, thereby avoiding abrupt or incorrect “absent from work” status.
- Ensure accurate status updates: Employers can file an “absent from work” report only if the worker has no active contract and their Iqama (residency permit) is valid for at least 60 more days.
- Provide clear communication: Inform outgoing employees about their three legal options during the grace period and the importance of acting early.
- Facilitate timely transitions: Coordinate transfer of sponsorship or exit paperwork efficiently, using digital tools provided on Qiwa.
- Support documentation needs: Advise staff on how to obtain official service records and salary certificates through Qiwa Individuals for smooth job changes or legal exit.
The background
The grace period heralds a major reform of Saudi labour policy. By improving mobility, reducing friction, enhancing legal protections and introducing digital tools, it aims to make the Kingdom more attractive to foreign talent, in line with the Vision 2030 programme.
Need advice on relocating your foreign employees to Saudi Arabia? Discuss their immigration and moving requirements with us!