Saudi Arabia enhances salary protection with ‘unified employment contract’

KSA-based employment expert Dr. Sairah Narmah-Alqasim of Pinsent Masons was commenting following the launch of the updated ‘unified employment contract’ – a new legally binding framework designed to strengthen contractual relationships and safeguard the rights of employers and employees while allowing workers the opportunity to expedite the resolution of wage-related disputes.

The initiative will see the integration of the Ministry of Human Resources and Social Development (MHRSD)’s Qiwa portal and the Ministry of Justice’s (MOJ) Najiz platform, making wage clauses in employment contracts documented on Qiwa legally enforceable directly before the KSA enforcement courts. This will allow workers to bypass traditional labour dispute channels and file wage claims directly via Najiz, significantly streamlining the dispute resolution process.

The launch of the new standardised contract was announced by both the MOJ and the MHRSD and follows other recent moves by the KSA government to protect workers and streamline processes, diversify the economy and attract global investment in line with KSA’s Vision 2030 goals.

The initiative is expected to reduce wage-related disputes and boost transparency in the workplace by introducing new procedures for documenting an employment contract under a new enforcement model. The documentation process will be carried out through the Qiwa platform, where the employer submits a request either to document a new employment contract or update existing ones. The request is then sent to the employee, who may approve, reject, or propose any amendments. Once both parties have approved the contract, it is deemed documented and enforceable.

The new model will be rolled out on the Qiwa platform in three phases to cover the full breadth of the labour market. The first phase, effective from 6 October, will apply to new employment contracts, new contractual relationships or updates to the terms of existing contracts. Phase two, effective from 6 March 2026, will cover workers on fixed-term contracts, which, upon expiration and renewal or extension, will be transferred to the enforceable contract model. Phase three, effective from 6 August 2026, will extend the standardised agreement to include all workers on indefinite or open-ended contracts.

The changes will be particularly significant for wage disputes. If an employer fails to pay wages, the employee can now submit an enforcement request through the Najiz portal. The request can be submitted within 30 days in the event of non-payment of full wages and within 90 days in the event of non-payment of partial wages. Employers may also object to the enforcement request through the Najiz platform. Upon being notified of the enforcement request, an employer is granted five days either to file an objection or to settle the payment. The payment process will be documented and verified through the Madad digital platform.

Narmah-Alqasim said the new model will introduce new, significant compliance risks for employers. “Failure to pay wages, whether in full or in part, can now trigger direct enforcement proceedings, with only five days to respond once notified,” she said. “This effectively means that wage obligations are no longer just contractual, and that they are judicially binding. By embedding a legally enforceable salary clause, the Kingdom is reinforcing its commitment to fair employment practices and worker protection. This change empowers employees to take direct legal action in cases of delayed or unpaid wages – without the need for lengthy litigation or additional documentation."

She added: "The integration of Qiwa, Najiz, and Madad platforms makes enforcement swift and accessible, reflecting the Kingdom’s broader push toward digital transformation and transparency in the labour market. This reform is not just regulatory – it’s cultural. It sets a new standard for accountability and trust between employers and employees”.