Saudi Arabia Tightens Employment Contract Rules With New Digital Verification System

Saudi Arabia has rolled out a new requirement mandating that all private sector employment contracts be digitally authenticated through two official government platforms, in a sweeping move to modernize its labor governance and strengthen worker protection. 

The reform, officially known as the “Authenticated Employment Contract”, requires every employment agreement to be recorded on both the Qiwa portal  operated by the Ministry of Human Resources and Social Development and the Najiz platform, managed by the Ministry of Justice.

Previously, contracts were only registered on Qiwa, but the new dual-platform system now links employment agreements directly to the judicial framework, giving them binding legal status. Under this integration, contracts authenticated through Qiwa are automatically recognized on Najiz, ensuring greater enforceability and transparency in employer obligations, especially regarding wages.

Stronger Wage Protection-

One of the most impactful aspects of the reform is the introduction of an enforceable wage clause. Once a contract is authenticated, its salary terms become legally binding. If an employer fails to pay wages within 30 days of the due date, the employee can file an enforcement request directly through Najiz, bypassing traditional labor dispute channels.

This mechanism significantly accelerates wage recovery and enhances compliance oversight. Legal experts from firms such as Pinsent Masons and BCLP have highlighted that the integration of Qiwa and Najiz represents a major leap toward direct legal accountability in Saudi employment relationships.

New Contract Details Required-

According to global immigration consultancy Fragomen, the new system also introduces stricter documentation requirements. All employment contracts must now clearly specify:

• The registered national address of both employer and employee

• The exact salary payment date

• The type of contract (fixed-term or open-ended)

• Job title, duties, and associated benefits

Employers are required to ensure the accuracy and validation of these details through Qiwa. Non-compliance may result in fines, enforcement actions, or restrictions on future work permit issuance.

A Broader Labor Reform Agenda-

This digital verification initiative builds upon earlier landmark reforms, including the abolition of the kafala (sponsorship) system. That change replaced employer-dependent visas with contract-based employment, granting migrant workers the freedom to change jobs and travel abroad without prior employer consent.

Together, these reforms mark a transformative modernization of Saudi Arabia’s labor market promoting transparency, fairness, and accountability.

For employers, the changes bring higher compliance standards and closer regulatory scrutiny. For workers particularly the 13 million expatriates in the private sector he reforms offer enhanced protection, mobility, and access to justice.

Aligning With Global Standards-

Analysts view this latest move as part of Saudi Arabia’s broader effort to align labor laws with international standards while boosting investor confidence in a fair, rule-based employment system. By embedding legal enforceability directly into digital employment contracts, the Kingdom continues its push toward a modern, transparent, and globally competitive labor environment.