Human Resources raises the percentage of documented employment contracts to 90%
The Saudi Ministry of Human Resources and Social Development announced a new strategic step aimed at regulating the labor market, deciding to update the compliance requirements for the mechanism of documenting employment contracts for all private sector employees through the “Qiwa” electronic platform. This step comes as part of the Ministry’s ongoing efforts to improve the work environment and protect the rights of all contractual parties.
The importance of documenting employment contracts in the digital transformation process
The Saudi labor market has witnessed radical transformations in recent years, aligning with the goals of Saudi Vision 2030. The work environment has shifted from reliance on traditional paper-based transactions, which were sometimes inaccurate and led to the loss of rights, to a fully integrated digital environment. The launch of the “Qiwa” platform marked a historic turning point in human resources management, becoming the official and approved interface for regulating labor relations. The electronic documentation of employment contracts is considered one of the most important initiatives launched by the Ministry to eliminate labor disputes and provide a clear and reliable legal framework that enhances the stability of the labor market and increases its attractiveness to local and international talent.
Stages of increasing compliance with documentation requirements
The ministry clarified that the new decision includes raising the targeted compliance rate for the employment contract documentation process to a minimum of 85% starting from April 30, 2026. Efforts will not stop there; the ministry will complete the second phase of its plan by raising the required rate to 90% by the end of June 30, 2026. The ministry indicated that the mechanism for calculating the compliance rate is automated and direct, through comparing the number of electronically documented contracts with the total number of employees registered with the establishment. This allows employers to monitor their establishments' performance with high accuracy and transparency via the dashboard on the Qiwa platform.
Expected impact on the local and regional economic landscape
The impact of this decision extends beyond regulating internal procedures to encompass broad economic and social dimensions. Domestically, it contributes to reducing labor cases in courts and enhances job security for workers, positively impacting their productivity. Regionally and internationally, the Kingdom's commitment to implementing the highest standards of transparency and safeguarding workers' rights strengthens its position as a leading and reliable investment destination, aligning with the standards of the International Labour Organization. This development positions the Saudi labor market as a model to be emulated in the Middle East for protecting workers' rights and developing labor legislation.
Urgent call for establishments to rectify their situations
In closing, the Ministry of Human Resources and Social Development issued a clear call to all private sector establishments to expedite the review of their undocumented employment contracts. It emphasized the importance of completing all documentation procedures through the Qiwa platform to ensure compliance with the required quotas within the specified deadlines. This warning aims to prevent any difficulties or obstacles that non-compliant establishments may face, which could directly impact their ability to benefit from the various services offered by the Ministry, services that are linked to compliance indicators under the Saudi Labor Law.
