Saudi Arabia: Online Registration Process for Employment Contracts Forthcoming

The General Organisation for Social Insurance and the Labour and Social Development Ministry has launched a new initiative which allows employers in the private sector to upload and update electronic version of employment contracts for their Saudi and foreign employees. It is expected the registration process will become mandatory for all employers in Saudi Arabia in the near future. The new initiative is aimed at ensuring employment contracts conform with private sector regulations, ensuring the accuracy of data recorded in agreements and reducing labour disputes between parties. It also allows employees to review their contract online. Unlike some other jurisdictions in the region, employers in Saudi Arabia are not required to use any specific employment contract template as long as the agreement does not contravene the country’s labour regulations. However, in practice, there is no proper mechanism in place for verification of contracts. The fact the initiative is launched by the GOSI may also suggest the authorities are preparing to scrutinise the area of social contributions paid by employers and which are calculated proportionally to the employee’s remuneration.