Details of the second phase of implementing the executive bond for contracts

Details of the commencement of the application of the executive order to fixed-term contracts

The Ministry of Human Resources and Social Development in the Kingdom of Saudi Arabia announced the commencement of the second phase of implementing the executive order for fixed-term contracts, through the adoption of the "notarized employment contract as an executive order." This phase includes fixed-term contracts when they are updated or renewed after their expiry. This strategic step comes as part of the Ministry's ongoing efforts to enhance the reliability of contractual relationships and improve the efficiency of procedures related to safeguarding the rights of all parties involved in employment.

The general context of the development of labor legislation in the Kingdom

The Saudi labor market has witnessed radical transformations in recent years, coinciding with the objectives of Saudi Vision 2030, which aims to build an attractive, competitive, and stable work environment. Historically, labor disputes required lengthy court proceedings, impacting workforce stability and business productivity. With the move towards comprehensive digitalization, the urgent need for innovative and effective legal solutions has become apparent. This led to the strategic partnership between the Ministry of Human Resources and the Ministry of Justice to establish a comprehensive digital infrastructure that enables the conversion of contracts into immediate enforceable instruments, representing a qualitative leap in the history of labor law and legislation governing the labor market in the Kingdom.

The mechanism for benefiting from the service through the Qiwa and Najiz platforms

The ministry clarified that benefiting from this service requires first documenting or updating the employment contract through the Qiwa platform, and then obtaining an enforcement number from the Ministry of Justice's Documentation Center. To ensure the worker's rights are precisely defined, clear timeframes have been established. If the worker does not receive their full wages within 30 days of the due date, or receives only a partial wage after 90 days, they can submit a direct electronic enforcement request through the Najiz platform. To guarantee fairness, the regulations also grant the employer the right to appeal within five days of being notified.

The expected impact of the decision to implement the executive bond locally and regionally

The implementation of the enforcement order carries significant economic and social dimensions. Domestically, this measure will greatly alleviate the burden on labor courts, shorten litigation periods, and ensure that financial rights reach their rightful recipients as quickly as possible, thereby enhancing family stability and increasing job satisfaction. Regionally and internationally, these steps contribute to improving the Kingdom's ranking in global competitiveness and labor rights indices, making the Saudi market a preferred regional destination for attracting global talent and expertise. This also sends a reassuring message to foreign investors about the existence of a robust and equitable legislative environment that protects investments and regulates the relationship with human resources according to the highest international standards.

Proactive steps to guarantee the rights of parties to the contractual relationship

The Ministry of Human Resources and Social Development emphasized to all establishments the necessity of expediting the documentation and updating of contracts through their accounts on the "Qiwa" platform, as this is a fundamental requirement for safeguarding rights and calculating Saudization quotas. The Ministry also urged employers and employees to consult the guidance manual available on its website to learn about all regulations and eligible categories. Through this phase, the Ministry aims to prepare the market for the third phase, which will include "open-ended contracts." This will give establishments the opportunity to gradually adapt to these developmental procedures, which ensure the fair and effective implementation of rights and proactively reduce labor disputes.