3 Important UAE/Saudi Labor Law Updates You Should Check Before Your Next Visa Renewal

Employment opportunities and conditions are changing rapidly in the Gulf with the UAE and Saudi Arabia both rolling out major overhauls with direct implications to the revised visa renewals period. As an expatriate employee, HR professional or owner, it’s important to stay informed about these changes to prevent any delays, compliance problems, or financial penalties in your employer relations.

A large number of workers continue to use outdated business practices which do not comply with the regulations. Labor systems today are fully digitized and integrated with immigration platforms, meaning that conditions like a missing document or field can stop the process of renewing immigration documents or residency permits.

The UAE and Saudi employees should review these three key updates in Labor law before their next visa renewal.

1. UAE Has Officially Eliminated Unlimited Employment Contracts

Unlimited contracts now no longer exist in the UAE workforce, as one of the main factors of change in the UAE is the elimination of unlimited contracts for all those working in the private sector. All workers are now to be hired under a fixed-term contract with a definite end date.

While the previous rule for no more than 3 years for fixed term contracts has been removed, employers still must ensure that each contract will have a fixed term. This will bring more clarity to the law for employers and workers.

This happens to be especially important when renewing your visa applications. Immigration systems are linked with the MOHRE and an unsuccessful attempt to renew a residence visa based on an expired unlimited contract could lead to automatic processing delays until the updated contract.

2. Saudi Arabia Requires 100% Digital Qiwa Contract Authentication

Saudi Arabia is rapidly moving towards digital transformation by shifting from other employment platforms to the central platform, “Qiwa”. This is not enough anymore for regulatory requirements of expatriate workers when it comes to paper contracts or unsigned PDFs.

All employment contracts have to now be digitally signed and approved by both the employer and employee on the Qiwa platform. This authentication process is an integral component of Saudi’s labor compliance.

It can prevent employees from getting a work permit or renewing their Iqama if they have an invalid contract or one that hasn’t been submitted or is pending approval.

3. Saudi Arabia Introduces New Probation and Resignation Rules

Saudi labor reforms have also given modern conditions to the resignation process and probation so it is essential for any employee to check on any existing employment contract before they sign it.

The period of probation has doubled to two months where this term is specified in the letter of contract. This should be checked by employees before taking up a new job or renewing an existing one.

The new rules also introduce periods of notice. Moreover, laborers who submitted a resignation can rescind their resignation if it hasn’t been accepted yet for the first 7 days. The resignation is deemed to be accepted when the employer fails to give a response for 30 days.

UAE vs Saudi Arabia Labor Law Comparison

Check the table tabulated below for the comparison between UAE VS Saudi Arabia Labour Law.

Feature	UAE	Saudi Arabia
Employment Contracts	Fixed-Term Only	Fixed-Term & Indefinite
Unlimited Contracts	Abolished	Accessible within monitored structure
Maximum Probation	6 Months	180 Days
Compliance Platform	MOHRE	Qiwa
Wage Protection	Mandatory WPS	Receptivo WPS through Mudad
Visa Renewal Dependency	Fixed-Term Contract Required	Qiwa Authentication Required

Why Do These Updates Matter for Visa Renewals?

Today, many immigration processes in the Gulf countries are primarily based on electronic databases. Visa applications are cross-checked automatically before processing, such as for endorsement, approval, and reports of compliance with labour contracts, wage information etc. with respect to employment status.

This could be because of an expired contract, a lack of digital authentication, or a violation of wage protection requirements  all of which could keep a residency from being renewed or even obtained in the first place.

Checking with employment documents before renewal period for employees can avoid unexpected complications. Employers also save on interrupted compliance of their workforce and also escape penalties for administration.

Wage Protection Systems Continue to Expand

The UAE and Saudi Arabia are both enhancing their Wage Protection Systems (WPS) to enhance salary transparency and employee rights.

Major obstacles to company immigration in UAE include the freezing of the visa applications/renewals of the new hires until the company’s problems are addressed under WPS.

Saudi Arabia has likewise adopted a digital monitoring scheme with Mudad and long-standing salary delays could pave the way for the transfer of an expatriate’s employment to another employer under Qiwa without the need to seek approval from that person’s home sponsor.

FAQs

Do all contracts in the UAE have terms to them?

The word no longer applies to private sector employees when it comes to the number of employment contracts. It changed the nature of all employees: new fixed contracts that all workers must have, with an end date.

Why is Qiwa authentication in Saudi Arabia?

Qiwa authentication ensures both the employer and employee have digitally agreed on the employment agreement, ensuring validation. If this is not done, work permit, and Iqama renewals may get denied.

What is the longest time you can get sentenced to probation in Saudi Arabia?

As a result of the changed provisions in the labour law, probation can be of up to 180 days’ duration, subject to express provisions in the employment agreement.

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