Key Points
- Saudi Arabia introduced a 60-day grace period for foreign nationals after contract expiration.
- Workers remain listed in Qiwa as “Disconnected from Work” during this time.
- Options include renewal, sponsorship transfer, or exiting the Kingdom.
- After 60 days, the status changes to “Absent from Work,” ending transfer eligibility.
Overview
Saudi Arabia has launched a 60-day grace period for foreign nationals whose employment contracts have expired without renewal. The policy, integrated into the QIWA digital labor platform, grants non-Saudi workers a two-month window to take action before facing removal from official employment records.
During the grace period, workers are recorded in QIWA as “Disconnected from Work.” Within these 60 days, they may choose to renew their contract with the same employer, transfer sponsorship to another employer through QIWA, or depart the Kingdom. Importantly, transfers during this period can be completed without the current employer’s consent, provided they occur within the 60-day window.
If no action is taken, QIWA will update the individual’s status to “Absent from Work” at the end of the grace period. This triggers automatic removal from the employer’s records, termination of General Organization for Social Insurance (GOSI) registration, loss of eligibility to transfer sponsorship, and potential requirements to exit Saudi Arabia.
The reform supports labor market flexibility while giving workers and employers clear timelines for decision-making. For related Gulf updates, see Corporate Immigration Partners’ Middle East insights.
Looking Ahead
Employers should closely monitor contract end dates and use QIWA to manage grace period options effectively. Workers planning to transfer should act promptly to benefit from the new flexibility. As implementation advances, further guidance may clarify procedures for sponsorship transfers and exit requirements.
