The Ministry of Human Resources and Social Development of the Kingdom of Saudi Arabia (Ministry) is rolling out a new enforceable version of the standard form employment contract issued via the Ministry’s Qiwa portal. The roll out integrates the wages clause contained in the Qiwa contract with the Ministry of Justice’s legal services portal, Najiz, enabling an employee to directly enforce the payment terms without having to initiate a claim through the Labour Courts.
Employers in the Kingdom of Saudi Arabia have been required for some time to use the standard form employment contracts issued by the Ministry, via the Qiwa portal. This contract is often called the Qiwa contract.
Under the recent changes, the wages clause included as part of the standard wording in the Qiwa contract now has enhanced status: once the parties have agreed the contract via the Qiwa platform, the wage clause is assigned an Execution Number, enabling this clause to be enforced directly through the Ministry of Justice’s online portal Najiz, without having to first initiate litigation through the Labour Courts, where the employer fails to pay the agreed salary correctly or on time.
In line with these changes, the Qiwa contract also now requires employers to set out a more detailed wage breakdown, which includes the statutory amounts deducted from salary and collected by the General Organization for Social Security (known as the “GOSI contributions”) and the consequent net wage. In addition, the...
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