Hiring workers with transferable Iqamas can be a smart move for companies operating in Saudi Arabia. These workers are already familiar with local labor laws and regulations, and the transfer process can be smoother than recruiting from abroad. However, companies often make critical mistakes during the transfer process that can lead to costly delays, legal penalties, and disruptions to operations.
Understanding these common pitfalls is crucial to ensure a successful and compliant hiring process.
Common Mistakes Companies Make When Hiring Workers with Transferable Iqama
1. Employer Resistance
One of the biggest hurdles in transferring an Iqama is obtaining consent from the worker’s current employer. Some employers may refuse to grant release for various reasons, such as unresolved disputes, financial claims, or simply to retain the employee longer. Companies hiring new workers often underestimate this challenge, leading to stalled transfers and frustrated candidates. It’s important to verify early if the current employer is willing to approve the transfer.
2. Incomplete or Inaccurate Paperwork
The Iqama transfer process is paperwork-intensive. Missing, incomplete, or incorrect documentation can cause significant delays or result in outright rejection of the transfer request. Common documentation errors include:
- Mismatched personal information
- Missing government approvals
- Expired licenses or permits Companies must ensure that all documents are carefully prepared and validated before initiating the transfer process.
3. Legal and Financial Issues
Workers who have outstanding fines, unpaid debts, or pending legal cases may face barriers in transferring their Iqama. Companies often overlook checking the legal standing of prospective employees, only to encounter delays or rejections later. Conducting a thorough background check, including verification of legal and financial status, can save companies considerable trouble.
4. Violations of the Nitaqat System
The Nitaqat system governs the ratio of Saudi nationals to expatriate workers within a company. If a company is not compliant with Nitaqat regulations, it may be barred from hiring or transferring expatriate workers. Moreover, each company’s Nitaqat color classification (Red, Yellow, Green, Platinum) determines its eligibility to process Iqama transfers. Ignoring these regulations can lead to penalties and the inability to complete the hiring process.
5. Lack of Understanding of Transferable Iqama Rules
Many companies fail to fully grasp the rules and nuances of transferable Iqamas. These regulations frequently change, and misunderstanding them can result in wrongful procedures, illegal hires, or transfer rejections. It’s essential for HR departments and hiring managers to stay updated on the latest labor laws and transfer procedures.
6. Failure to Notify and Obtain Employer Consent Properly
A formal notification process must be followed when requesting an Iqama transfer. Some companies mistakenly assume that an employee’s verbal confirmation is enough. In reality, formal consent from the current employer is mandatory through government platforms like Qiwa and Absher. Failing to properly request and document consent can invalidate the transfer.
7. Ignoring Quota Restrictions
Beyond the Nitaqat color classification, companies must also observe industry-specific and company-size-specific quota restrictions on hiring expatriates. Ignoring these quotas can make transfers impossible or expose the company to regulatory fines. Companies should verify their eligibility before initiating the hiring process.
8. Delay in Processing
Many companies underestimate the time required for the transfer process. Government approvals, employer consent, and document verifications all take time. If companies plan hires assuming an immediate start date, they may face project delays and operational gaps. Planning transfers well in advance can help avoid such issues.
9. Not Addressing Iqama Status
Before proceeding, companies must check the status of the worker’s current Iqama and the sponsoring company’s Nitaqat status. If the current employer is in the Red zone, transfer procedures might differ or require special approvals. Additionally, the worker’s Iqama should be valid, and their current sponsor must have no pending government dues or legal cases.
Conclusion
Hiring workers with transferable Iqamas offers a practical solution for businesses looking to fill positions quickly in Saudi Arabia. However, it requires careful handling of paperwork, adherence to legal requirements, and understanding of regulatory systems like Nitaqat. By avoiding the common mistakes outlined above, companies can make the transfer process smoother, faster, and legally compliant—ensuring they attract and retain the best talent without unnecessary complications.
Need Help with Hiring Workers with Transferable Iqama?
At Recruiter in Saudi Arabia, we specialize in providing skilled and verified workers with transferable Iqamas across a wide range of industries in Saudi Arabia.
We take care of everything — from ensuring employer consent, verifying documents, checking legal statuses, and managing the entire transfer process — so you can focus on growing your business.