Saudi Arabia has introduced a new policy to protect international employees after their contracts end. Starting 31 July 2025, employers can no longer immediately mark an employee as “absent from work” following termination. Instead, a 60-day grace period will be granted, provided the employee’s Iqama (residency permit) remains valid.
This change offers a much-needed buffer for both employees and employers, especially during times of uncertainty about legal status and next steps.
What’s New: 60 Days Before “Absent” Status Applies
Saudi Arabia’s Qiwa platform, which manages labor relations, has quietly introduced an important adjustment:
- No immediate absence marking – Employers must wait 60 days after contract termination before flagging an employee as absent, if their Iqama is valid.
- Valid Iqama required – The grace period applies only if the Iqama remains valid for at least 60 days after the contract ends.
- Digital enforcement via Qiwa – The system connects with the Ministry of Human Resources and Social Development (MHRSD) and the Ministry of Interior to verify records.
What Employees Can Do During the 60-Day Window
The new policy allows employees to use the two-month period to:
- Return to their current employer (if rehired)
- Transfer sponsorship to another employer through Qiwa
- Leave Saudi Arabia legally
If no action is taken within 60 days, the system will automatically mark the employee as absent, remove them from the employer’s record, and flag the case for government follow-up.
Why This Matters for International Employees
This update is more than a technical adjustment—it can determine whether a worker maintains legal status or falls into violation.
- Reduced risk of overstay violations – Employees are not forced into rushed decisions that could lead to illegal status.
- Improved job mobility – The grace period makes it easier to transfer sponsorship through Qiwa’s digital services.
- Access to work history – Qiwa users can download employment and income certificates, useful for job applications or exit visas.
Why Employers Should Pay Attention
Employers also benefit from the new rules:
- Avoid premature absence reports that could lead to administrative fines
- Ensure Iqama validity before initiating status changes
- Allow the system to process absence status automatically after 60 days
This reduces false or premature absence claims and supports fair labor practices.
Part of Saudi Arabia’s Labor Reform Vision
The 60-day grace period is part of broader labor reforms under Vision 2030, which also include:
- Wage protection programs
- Digitized employment contracts
- Standardized dispute resolution processes
The new rule introduces fairness and structure, reducing the risk of losing legal status due to administrative errors or bad timing.
Conclusion
Saudi Arabia’s new 60-day policy under the Qiwa platform offers a practical and balanced approach to post-termination procedures. It protects workers from sudden loss of status and ensures employers follow a structured process—strengthening the country’s push toward a transparent, modern labor market.