Saudi Arabia Launches Unified Employment Contract Initiative

In October 2025, in a major step toward enhancing labour market transparency and efficiency, the Kingdom of Saudi Arabia launched (on a staggered basis) the Unified Employment Contract Initiative, a transformative labour reform that makes documented employment contracts enforceable instruments.

This initiative, led by the Ministry of Human Resources and Social Development (MHRSD) in collaboration with the Ministry of Justice (MOJ), aligns with the Kingdom’s Vision 2030 goals to modernize labour practices, protect worker rights, and attract global investment.

Why this matters

The initiative addresses a long-standing challenge in labour relations: wage disputes. By making the wage clause of employment contracts legally enforceable, employees can now seek justice more swiftly and effectively, while employers benefit from a clearer and more accountable legal framework. Additionally, initiative significantly shortens the wage dispute process. Previously, employees had to go through multiple stages—starting with settlement stage before the MHRSD, followed by labour court proceedings, potential appeals, and finally execution through enforcement courts. Now, with the wage clause treated as an enforceable instrument, employees can bypass these steps and submit claims directly to the executive courts via the Najiz platform, provided the contract is documented on Qiwa and verified by the Ministry of Justice. Previously, employees had to file a wage complaint, through a 21-day amicable settlement phase before reaching the labour courts—a process that could stretch over 2 to 6 months. With the launch of the Unified Employment Contract system in October 2025, wage recovery is now faster and fully digital. The wage clause in documented contracts is treated as an enforceable clause, allowing employees to file enforcement requests directly through the Najiz platform to the Enforcement Court. Claims can be submitted after 30 days in cases of full non-payment or after 90 days for partial payment. Employers then have five days to comply. If they fail to do so, the Enforcement Court will apply sanctions under the Enforcement Law, starting with freezing the employer’s bank accounts and blocking access to government portal services.

Who can benefit

To qualify for enforcement, contracts must:

• Be documented on the Qiwa platform using the official template.
• The employment contract must have an Execution Number issued through the Documentation Center at the Ministry of Justice, generated through technical integration between the two ministries.

Only verified and mutually agreed-upon contracts are eligible for enforcement, ensuring legal clarity and procedural integrity.

Phased implementation

The Unified Employment Contract Initiative will be rolled out in three distinct phases to ensure smooth integration across all employment types. Phase one, effective October 6, 2025, applies to newly signed contracts and updates to existing ones. Phase two begins on March 6, 2026, covering fixed-term contracts upon renewal or extension. Phase three, starting August 6, 2026, will extend the enforceable contract model to all indefinite or open-ended contracts.

How it works

1. Employers submit contracts via the Qiwa platform.
2. Employees may approve, reject, or suggest edits.
3. Upon mutual agreement, the contract is automatically linked to the Ministry of Justice and becomes enforceable.

What’s enforceable

Only the wage clause is enforceable, covering:

• Basic salary
• Housing allowance
• Transportation allowance
• Other cash benefits

Submitting a claim

Employees can file enforcement requests via the Najiz platform by:

1. Selecting “Enforcement”
2. Entering contract and wage details

Wage verification is conducted electronically through the Madad platform, part of the Wage Protection Program.

Recommendations

All employment contracts in Saudi Arabia should be documented through the Qiwa platform using the official template to ensure legal enforceability. Wage verification should be conducted electronically via the Madad platform, which is part of the Wage Protection Program administered by the Ministry of Human Resources and Social Development. This system helps monitor salary payments, detect discrepancies, and maintain transparency between employers and employees. Stakeholders are also encouraged to review The Guideline for the Initiative “Documented Employment Contract as an Enforceable Instrument”, which clarifies the documentation process, eligibility criteria, enforcement steps, and platform integration. This resource provides practical instructions and legal context to support proper implementation and compliance.

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