Saudi Arabia Introducing the “Golden Handshake” Program to Motivate Employees to Resign

Officials approved the creation of a program known as the “Golden Handshake” for government agencies whose employees are subject to civil service ladders with the goal of encouraging resignations with a budget of 12.7 billion riyals allocated for the first three years of the program. 

This decision requires all government agencies subject to the civil service ladder to post vacant positions for five days on the Ministry of Human Resources and Social Development’s electronic system with the goal of filling them by transferring employees between government agencies. 

Golden Handshake Program’s Objectives:

If the government agency is unable to fill the position declared through the system, it may advertise it in accordance with the regulations for filling vacancies. This excludes user employment, pay and restricted jobs as well as crucial and critical jobs designated by the relevant authorities.

The decision also assigns the Ministry of Human Resources and Social Development and the Ministry of Finance to list vacant posts in government agencies that have been vacant for five years or longer in consultation with the necessary authorities in preparation for elimination.

Program Terms & Conditions:

The program seeks to provide a financial incentive to employees who wish to resign. The responsible authorities will set the program’s rules and conditions such as the target age groups and the number of years of service required.

In order to increase labor market flexibility, the decision has allowed government agencies to fill a percentage of their positions through part-time contracts provided that this percentage is determined by agreement between the relevant agency and the Ministry of Human Resources and Social Development.