Tuesday, October 21, 2025
Saudi Arabia Adopts Wage Clause in Employment Contracts to Protect Worker Rights
The Ministry of Human Resources and Social Development (HRSD), together with the Ministry of Justice, has announced that the wage clause in employment contracts will now be treated as an official executive document. This means that if an employer does not pay a worker’s salary, action can be taken immediately without going to court. The goal is to protect workers’ rights, ensure fairness, and strengthen trust in the Saudi labor market. The process connects the Qiwa and Najiz platforms.
What the Wage Clause Means
According to the Qiwa platform, the wage clause is now a legal tool that lets workers or employers file a complaint if wages are not paid on time. No extra documents are needed because the system automatically verifies payment through the Madad platform. Trending: Saudi Arabia issues new domestic worker regulations
Benefits of This Change
This new system helps to:
➤ Shorten the dismissal process from 40 days to just 5 days after notice.
➤ Reduce labor disputes and speed up procedures.
➤ Make the rights and responsibilities of both sides clear.
➤ Improve wage payment compliance.
➤ Lower lawsuits by up to 60%.
It will also boost worker confidence, increase productivity, and support Saudization (local employment). The new system will attract skilled workers, help small and medium businesses, and improve economic growth by making employment contracts more trustworthy and fair. It will also help fight illegal practices such as commercial concealment.
When It Will Be Applied
The decision will be applied in three stages to help everyone adjust smoothly:
🔹 First Phase: October 6, 2025: For new or updated contracts.
🔹 Second Phase: March 6, 2026: For renewed fixed-term contracts.
🔹 Third Phase: August 6, 2026: For permanent contracts. Most Viewed: Procedure to terminate your employment contract via Qiwa
How to Turn the Wage Clause into an Official Document
To make the wage clause an executive document, you must:
🔘 Document the contract using the Qiwa platform.
🔘 Update and check the wage information to make sure it’s correct.
🔘 In case of a payment dispute, the notarized contract becomes an official legal document that can be used directly for enforcement through Najiz.
How to Document a Contract on Qiwa
To document your contract on Qiwa, follow these steps:
1. Log in to your Qiwa account.
2. Go to Job Contracts.
3. Enter the verification code sent to your phone.
4. Click Job Offer and then View Job Contracts.
5. Choose to accept, request changes, or reject the contract.
Why This Initiative Matters
The HRSD said that making the employment contract an executive document helps workers get their salaries faster without filing a lawsuit. The contract itself serves as proof, enabling swift enforcement.
This new step supports Saudi Arabia’s efforts to improve the labor system, protect workers’ rights, reduce payment disputes, and promote transparency. It connects Qiwa, Madad, and Najez to make wage payments fair, swift, and easy to verify. Read: Emergency Siren test in Saudi Arabia on 3rd November, 2025
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| Saudi Arabia Adopts Wage Clause in Employment Contracts to Protect Worker Rights |
