Saudi Arabia tightens employment contract rules with new digital verification system

Dubai: Saudi Arabia has introduced a new requirement for all private sector employment contracts to be digitally authenticated through two official government platforms — part of a wider drive to modernise labour governance, improve transparency, and protect worker rights.

The reform, officially called the “Authenticated Employment Contract”, mandates that every employment contract must now be recorded on both the Qiwa portal (run by the Ministry of Human Resources and Social Development) and the Najiz platform (operated by the Ministry of Justice).

Previously, contracts were only registered on Qiwa, but the new dual verification system links employment agreements directly to the legal framework, giving them binding judicial power. This means that contracts documented through Qiwa automatically gain legal recognition on Najiz — streamlining enforcement and making employer obligations, particularly wage commitments, more accountable.

The most significant feature of the reform is the enforceable wage clause. Once a contract is authenticated, its salary terms become legally enforceable. If an employer delays payment by more than 30 days, the employee can file an enforcement request directly through Najiz, without first going through traditional labour dispute channels.

This change speeds up wage recovery and ensures stricter oversight of employer compliance. Legal experts such as those from Pinsent Masons and BCLP have noted that the integration between the two systems marks a major step toward direct legal accountability in Saudi employment relationships.

The new rules also require more detailed employment documentation. According to immigration firm Fragomen, all contracts must now include:

Employers must ensure that these details are accurate and validated through Qiwa to avoid enforcement actions or penalties. Failure to comply may result in fines or restrictions on future work permit issuance.

The new authentication system builds on earlier reforms, including the abolition of the kafala (sponsorship) system earlier this year. That change replaced employer-tied visas with contract-based employment, allowing migrant workers to change jobs freely and travel abroad without employer approval.

Together, these reforms represent a fundamental modernisation of Saudi Arabia’s labour market — one that prioritises transparency, fairness, and accountability.

For employers, it means higher compliance standards and closer regulatory scrutiny. But for workers, especially the 13 million expatriates in Saudi Arabia’s private sector, it offers greater protection, mobility, and access to justice.

Analysts view the move as another signal of Saudi Arabia’s push to align its labour laws with global standards while strengthening investor confidence in a fair, rule-based employment system.