Hiring Iqama holders in Saudi Arabia comes with specific legal obligations and regulatory requirements that employers must follow to remain compliant with Saudi labor laws. Whether recruiting skilled expatriates or transferring Iqama holders between companies, it’s crucial to understand the legal framework involved. Here’s an overview of the key legal considerations when hiring iqama holders in KSA:
Key Legal Considerations When Hiring Iqama Holders in KSA
Work Permits and Iqama Issuance
Every foreign employee in KSA must hold a valid Iqama, which functions as both a residency and work permit. It is the employer’s legal responsibility to:
- Apply for and obtain the Iqama through the Ministry of Interior.
- Ensure timely renewal of the Iqama to avoid penalties.
- Keep employee information up to date in official records.
Employment Contracts
Hiring foreign workers requires a formal employment contract, which must:
- Be written in both Arabic and English.
- Include detailed terms such as job role, salary, benefits, working hours, and duration of employment.
- Comply with the provisions of the Saudi Labor Law, including stipulations related to overtime, annual leave, and end-of-service benefits.
Government Fees and Levies
Employers are required to pay specific fees related to foreign employees:
- A monthly Maktab Amal fee of SAR 800 per worker.
- Additional fees for Iqama issuance and renewal, which vary depending on the employee’s job category and sector.
- Costs related to medical insurance and health screenings.
Iqama Transfer (Naqal Kafala)
If an Iqama holder wishes to switch employers, the new employer must initiate the transfer through the Qiwa platform:
- A formal job offer must be submitted.
- The employee must notify the current sponsor/employer.
- The transfer must be approved by both the Ministry of Labor and the current employer (in most cases).
Post-Arrival Obligations
Upon the employee’s arrival in Saudi Arabia, the employer must:
- Coordinate mandatory medical examinations at authorized centers.
- Register the employee for health insurance under the Council of Cooperative Health Insurance (CCHI).
- Ensure all documents and digital records are properly updated.
Ongoing Compliance
Saudi authorities strictly monitor employer compliance with labor and residency laws. Employers must:
- Maintain accurate and up-to-date employee records.
- Ensure that employees always carry their Iqama and are in legal status.
- Be aware of Saudization quotas (Nitaqat program) and ensure a balanced workforce as per regulations.
Non-compliance may result in:
- Hefty fines.
- Deportation of employees.
- Suspension or revocation of business licenses.
Iqama Renewal
Iqamas are typically valid for one year, with the option for annual renewal. The employer must:
- Initiate the renewal process before the expiry date.
- Ensure there are no outstanding fines or violations linked to the employee.
Iqama Cancellation
Upon the termination of employment, the employer must:
- Officially cancel the Iqama through the Ministry of Interior.
- Make arrangements for the employee’s exit visa and repatriation (if applicable).
Employee Responsibilities
Iqama holders also have certain responsibilities, including:
- Carrying their Iqama at all times.
- Complying with Saudi laws, including those related to health checks, residency status, and conduct.
Final Thoughts
Hiring Iqama holders in Saudi Arabia is a structured process governed by well-defined legal requirements. Employers must be proactive in maintaining compliance to avoid disruptions in operations. Staying informed and keeping pace with regulatory updates ensures a smooth hiring process and protects both the employer and the employee under Saudi law.
Looking to hire qualified Iqama holders in Saudi Arabia? Partner with a trusted manpower agency in Saudi Arabia that understands the legal landscape and delivers skilled professionals quickly and compliantly.
Contact us today to streamline your hiring process and secure the workforce you need—efficiently, legally, and hassle-free!