Riyadh: Saudi Arabia has introduced a significant change to its labor regulations, offering foreign workers a 60-day grace period after their employment contracts end.
This policy update, made available through the official Qiwa platform, is intended to streamline job transitions, protect worker rights, and enhance regulatory transparency.
The revised rule took effect on July 31, 2025, and applies to all foreign workers whose Iqama (residency permit) remains valid throughout the 60-day window.
Under the previous system, employers could immediately report a worker as “absent from work” once the contract concluded. This often left little room for employees to manage post-contract decisions.
With the new change, employers are now required to wait two full months before taking such action, provided the worker’s Iqama remains valid for the duration.
This regulation will help avoid hasty classifications of absence, which in many cases negatively affected the worker’s legal status or chances of re-employment.
The Qiwa platform, which is closely linked with both the Ministry of Human Resources and the Ministry of Interior, will digitally enforce the grace period.
If the Iqama is due to expire in fewer than 60 days, employers cannot use the absence reporting tool, effectively granting some additional protection to the employee.
The two-month period offers flexibility to foreign workers to explore their options. Workers can now rejoin their previous employer (if mutually agreed), transfer sponsorship to a new company through the Qiwa platform, or exit Saudi Arabia legally without facing penalties
This time buffer is expected to reduce illegal overstays and improve compliance with Saudi labor laws. If the worker takes no action within 60 days, the Qiwa system will automatically mark them as absent, remove them from their former employer’s records, and alert immigration authorities.
This automated update ensures that the system reflects accurate, current employment statuses and minimizes legal ambiguities for both workers and employers.
This policy shift aligns with Saudi Arabia’s broader labor reforms aimed at improving conditions for expatriates. Analysts say the grace period will promote legal job mobility, limit misuse of the “absence from work” status, and allow workers to plan transitions responsibly.
By integrating these processes digitally, Saudi authorities also aim to minimize bureaucratic delays and human error. The move is being viewed positively by migrant advocacy groups and labor rights experts.
The new policy stands as part of Saudi Arabia’s ongoing Vision 2030 labor strategy, which includes upgrading digital infrastructure and fostering a more competitive and fair labor market.
