The guarantee waiver in Saudi Arabia … an expert talks about the results

Today, Sunday, I joined the initiative Cancel the guaranteeAnd “contractual improvement” for workers in the private sector is in effect in Saudi Arabia, as announced by the Ministry of Personnel in November 2020.

Writer and business analyst Ali Al-Hazmi told “This system will restore full equilibrium in the labor market as it creates a fair umbrella that combines the spirit of labor competition between expatriates and expatriates.” the Saudi citizen. “

He added that this system, which is included in the aspirations of the Saudi Vision 2030, will place the country among the ranks of global countries that have abolished the sponsorship system in the past and will help improve the Kingdom’s efforts to secure it Develop strengthen systems and improve the situation of workers by 2022.

“Black Market for Visa”

Al-Hazmi went on to say, “The sponsorship system created a black market for visas, creating a so-called shadow economy that depleted the Saudi economy. It also created a fertile environmental system for commercial obfuscation that caused great economic losses – since it did.” costs billions of rials annually and if we just cut it down to the number of transfers in the last 10 years we have reached one trillion and 700 billion rials, and that is an astronomical number that roughly balances the budget of more than one country These reforms are one of the initiatives in the Kingdom’s 2030 vision.

In addition, he stated that the “Improvement of the contractual relationship” initiative aims to increase the flexibility, effectiveness and competitiveness of the labor market and make it more attractive in line with best international practices, and to activate the contractual reference in the EU employment relationship between the employer and the employee on the basis of the employment contract documented between them under the Tawtheeq program. Contracts that will help reduce the disparities in the contractual procedures of the Saudi worker versus the overseas worker, which will be reflected in the increase in job opportunities for citizens in the labor market and the attraction of skills.

Provides career mobility service

The economist also pointed out that this initiative provides a migrant worker with a job mobility service after the expiry of his employment contract without the need for the consent of the employer, and the initiative also defines the mechanisms for the transfer during the validity of the contract, provided the notice period and specific controls are respected, and the exit and return service allows the foreign worker to travel outside of Saudi Arabia after submitting the application with an electronic notification from the employer, while the final disembarkation service allows the worker to to leave immediately after the end of the contract with an electronic notification to the employer without his consent, in addition to being able to leave Saudi Arabia with the employee bearing all the consequences of the contract termination, being observed is that all of these services are provided through the “Absher” platform and the “Goui” platform of the Ministry of Human Resources and Social Development.

It is noteworthy that this initiative was developed in collaboration with the Ministry of Interior and the National Information Center, and with the support of other government agencies, after many meetings with the private sector and the Council of the Saudi Chambers and based on studies and research based on international best practices in this area recorded.


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