With Vision 2030 reshaping the Saudi labor market, foreign employers must navigate a complex regulatory environment that distinguishes between Saudi and non-Saudi workers, mandates Saudization through the Nitaqat Program, and imposes strict compliance standards. Below is an updated and legally aligned guide.
While Article 3 of the Labor Law emphasizes equal employment rights, Articles 26 and 28 (and Article 8 of the Implementing Regulations) prioritize Saudi employment. Employers must comply with Saudization quotas and create job opportunities for nationals. Article 26 mandates that 75% of the workforce be Saudi unless otherwise exempted.
Non-Saudi employees remain under the sponsorship (Iqama) system. As per the Residence Regulations (Art. 2, 5), employers must ensure valid entry and residency permits. Article 6 of the Implementing Regulations prohibits retaining passports or medical cards of expatriates.
While Article 3 of the Labor Law emphasizes equal employment rights, Articles 26 and 28 (and Article 8 of the Implementing Regulations) prioritize Saudi employment. Employers must comply with Saudization quotas and create job opportunities for nationals. Article 26 mandates that 75% of the workforce be Saudi unless otherwise exempted.
Non-Saudi employees remain under the sponsorship (Iqama) system. As per the Residence Regulations (Art. 2, 5), employers must ensure valid entry and residency permits. Article 6 of the Implementing Regulations prohibits retaining passports or medical cards of expatriates.
