Saudi Arabia Launches Digital Initiatives to Bolster Wage Protection and Labor Rights

Kingdom Unveils New Digital Framework for Labor Protection

Riyadh, Saudi Arabia – Saudi Arabia has taken significant steps to fortify its labor market regulations with the launch of a digital 'Preventive Justice' initiative for wage protection and a new Unified Employment Contract. These initiatives, announced on October 7, 2025, and October 6, 2025, respectively, aim to safeguard workers' rights, ensure wage transparency, and streamline the resolution of labor disputes across the Kingdom. The reforms are a joint effort by the Ministry of Human Resources and Social Development (HRSD) and the Ministry of Justice.

Preventive Justice Initiative: Expediting Wage Recovery

The 'Preventive Justice' initiative for Wage Protection introduces a digital system designed to allow workers to enforce employment contracts and recover unpaid salaries without the need for traditional court proceedings. This mechanism applies to all workers with certified contracts. If an employer fails to pay wages within 30 days of the due date, or partial wages within 90 days, the worker can submit an enforcement request through the Najiz digital platform.

The system automatically verifies the claim against HRSD databases, including data from the existing Wage Protection System (WPS) and authenticated contracts. Employers are then granted five days to either object to the enforcement request or settle the payment. This automated process, linking HRSD's platforms with the Ministry of Justice, is expected to make workplaces 'fairer and more efficient' by offering a faster, simpler route for workers to claim unpaid wages.

Unified Employment Contract: Enhancing Transparency and Enforceability

Complementing the Preventive Justice initiative, the new Unified Employment Contract is a standardized electronic agreement regulating the relationship between employers and employees. Launched on October 6, 2025, this contract is legally enforceable and aims to enhance transparency regarding wages and obligations, thereby reducing workplace disputes.

Key features of the Unified Employment Contract include:

• Standardization: Provides a uniform template for employment agreements across various sectors.
• Legal Binding: The contract is legally enforceable, allowing employees to claim their rights directly through enforcement courts.
• Wage Transparency: Employers are obligated to specify agreed-upon wages within the contract, making the wage clause legally binding.
• Digital Integration: The contract is integrated with digital platforms like Qiwa and Najiz, facilitating seamless registration, verification, and enforcement processes.

Alignment with Vision 2030 and Broader Labor Reforms

These new measures build upon previous labor reforms, such as the Wage Protection System (WPS), which was launched in 2013 and expanded to cover all private sector entities by 2020. The WPS ensures timely payment of salaries through registered bank accounts and monitors compliance via the Mudad platform.

Eng. Ahmed M. al-Sharqi, Deputy Minister of Labor Affairs at HRSD, stated that the initiative 'is designed to enhance existing protections for workers' rights and strengthen trust in the labor market,' supporting Saudi Arabia's broader Vision 2030 goal of creating a transparent and competitive labor market. Dr. Najm Al-Zaid, Deputy Minister of Justice, and Dr. Abdullah Abuthnain, Deputy Minister of Human Resources and Social Development, also emphasized the initiatives' role in promoting justice, transparency, and empowering workers.

The Kingdom anticipates that these reforms will lead to a significant reduction in labor disputes, foster a more harmonious work environment, and attract further foreign investment by establishing a fair and digitally advanced labor system.