The Gulf Magazine
BusinessWednesday, 29 October 20252 min

Saudi Arabia tightens employment contract rules with new digital verification system

News Desk
Reporting by News Desk
Saudi Arabia tightens employment contract rules with new digital verification system
Share this article

Saudi Arabia has mandated a new dual-platform authentication system for all private sector employment contracts, a significant reform designed to make wage commitments legally enforceable and strengthen worker protections. The move is part of a wider drive to modernise labour governance and improve transparency for the kingdom’s workforce.

Dual-Platform Authentication Explained

Under the “Authenticated Employment Contract” reform, every employment agreement must now be digitally recorded and verified on two separate government platforms. Previously, contracts were only registered on the Qiwa portal, operated by the Ministry of Human Resources and Social Development. Now, they must also be authenticated on the Najiz platform, which is run by the Ministry of Justice.

This dual verification directly links employment agreements to the country’s legal framework, giving them binding judicial power. A contract documented through Qiwa automatically gains legal recognition on Najiz, streamlining enforcement and making employer obligations more accountable. This integration is part of a regional trend where nations are seeking wider digital cooperation between nations to improve governance.

Enforceable Wages and Faster Resolution

The most critical feature of the new system is the enforceable wage clause. Once a contract is authenticated across both platforms, its salary terms become legally binding. If an employer delays payment by more than 30 days, the employee can now file an enforcement request directly through the Najiz portal.

This change allows workers to bypass traditional labour dispute channels, speeding up the wage recovery process and ensuring stricter oversight of employer compliance. Legal experts have noted that the reform marks a major step toward direct legal accountability in Saudi employment relationships.

New Requirements for Employers

The rules also impose more detailed documentation standards. All employment contracts must now include the registered national address of both the employer and the employee, the exact salary due date, and the contract type, whether fixed-term or open-ended. A clear job title, along with a description of duties and benefits, is also mandatory.

Employers are required to ensure these details are accurate and validated through Qiwa to avoid penalties. Non-compliance may lead to fines or restrictions on the issuance of future work permits.

A Continuation of Labour Reforms

This authentication system builds on earlier reforms, including the abolition of the kafala sponsorship system. That change replaced employer-tied visas with a contract-based employment model, allowing many migrant workers greater freedom to change jobs or travel. These initiatives align with the kingdom’s broader economic goals, which have also seen Pakistan and Saudi Arabia launch an economic cooperation framework to strengthen ties.

Together, these reforms represent a fundamental shift in Saudi Arabia’s labour market towards greater transparency and fairness. While employers face higher compliance standards, the changes offer greater protection, mobility, and access to justice for workers, particularly the 13 million expatriates in the country’s private sector. This move is seen as a clear signal of the kingdom’s effort to align its labour laws with global standards and strengthen investor confidence.

Related Stories

View all
Saudi Arabia tightens employment contract rules with new digital verification system | The Gulf Magazine