Saudi Arabia to Regulate Work Permits for Expatriate Dependents | What Businesses and Families Must Know

In line with Vision 2030, Saudi Arabia is still changing its labor and immigration laws with special emphasis on work permits in the Kingdom for expatriate dependents. Traditionally, foreigners in the Kingdom under work permits depended on their sponsors for the latter to apply for work permits under a company name or in an employer’s name. 

Recent changes to modernize the workforce and make life better for expatriates’ families are changing the scenery for work permits in Saudi Arabia, and it is important for employers and expatriates to take note.

This article explains what the new regulation entails, who it applies to, how to apply, and the overall impact of these changes on the job market in Saudi Arabia.

Why Saudi Arabia is Regulating Work Permits?

Saudi Arabia has historically governed the labor market through strict sponsorship (kafala) systems. Any foreigner seeking to gain work had to have a job offer and a labor quota issued by his or her sponsor or registered company. Employment depended on the sponsor, usually the employer.

Demographic and economic changes have made the existing system less efficient. Now, with families accompanying expatriate workers, matters of equity and utilization of human resources arose. This led Saudi authorities to develop frameworks that allow adult expat dependents to work legally, provided they get work permits in Saudi Arabia.

This enters into force for three broad purposes:

• Reduce dependency on the sponsor by the employer
• Increase female and adult participation in the economy
• Guarantee a flexible and competitive labor market

Who Is Eligible for Work Permits Under the New Regulation?

The new regulation on work permits in Saudi Arabia targets specifically expatriate dependents, particularly adult children and spouses of expatriate workers. Before, they could either work informally or find sponsored employment separately. Now, they may qualify to apply under existing family-residency status.

Main categories include:

• Spouses of expatriate employees (wife or husband, depending on sponsorship)
• Adult children of expatriate residents above a certain age threshold (e.g., 18 or 21, based on current labor law)

This does not eliminate the hiring by one’s employers; instead, it establishes other routes for expatriate dependents to enter the labor market without a new labor quota or corporate sponsorship in certain cases.

Qualified dependents can now find a job and have work permits issued for them in Saudi Arabia without the traditional requirement of having a sponsoring employer. This is a major shift in policy from what it used to be.

What Are the Benefits of Regulating Work Permits?

1. Greater Labor Market Flexibility

Regulated work permits in Saudi Arabia for dependent relatives open up a wider pool of talent for employers. They can select from a larger set of skilled candidates with fewer limits from labor quotas.

2. Better Quality of Life for Expat Families

Past systems forced many expat spouses or children wishing to work to leave the country or depend on informal arrangements. With a rightly instituted work permit, now they have legal rights and protections, as well as benefits like any other employee.

3. Improved Economic Engagement

By allowing dependents to work, household incomes rise, and overall economic activity is stimulated, which is later aligned with Saudi Arabia’s goals of empowering citizens and diversifying their economically contributive channels.

How to Apply for Work Permits in Saudi Arabia | What You Should Know

Applications for work permits in Saudi Arabia for dependents are simple, yet the process requires candidates to meet specific criteria and furnish the requisite documents. Though implementation will see changes to the concrete details, this is a rough-cut of what applicants and employers are likely to face:

1. Eligibility Check

Candidates need to confirm that they are a dependent of a legally residing expatriate with a valid residency (Iqama) visa. Furthermore, the dependents must not have an independent sponsor of their own.

2. Required Documents

Commonly required documents include:

• Valid passport with residency visa
• Proof of relationship (marriage certificate, birth certificate)
• Medical clearance certificate (according to the Saudi medical policy)
• Educational and professional credentials (if applicable to job requirements)

3. Submission Through the Ministry Platforms

The applications are usually lodged in the Ministry of Human Resources and Social Development (MHRSD) or other e-Services’ platforms. The process is likely to begin with:

• Online submission
• Employer endorsement (if employment is with a specific company)
• Fees payment
• Verification and approval by regulatory authorities

4. Final Approval and Work Permit Issuance

Upon approval, the dependent of an expatriate gets an official work permit that would authorize them to work legally, enjoy employment rights, and avail themselves of the protections of the Labor Law.

How Employers Should Prepare

In Saudi Arabia, employers are preparing to change recruitment and workforce planning as more dependents of expatriates will be seeking jobs. Some major steps to be a part of the businesses are:

Training HR Teams

Human resources should be trained on eligibility, documentation, and processing timelines for work permits in Saudi Arabia as per the new regulations.

Updating Hiring Policies

Recruitment policies may require some change as a mechanism to facilitate eligible expatriate dependents into the candidate pool, mainly for job sectors with labor shortages.

Reviewing Sponsorship Responsibilities

Despite new channels, which have lessened the traditional reliance on sponsorship, employers still need to ensure compliance when hiring dependents into roles that still require corporate sponsorship.

Potential Challenges and Considerations

Despite numerous pros accompanying the new measure, there are a few drawbacks that can arise:

1. Verification and Compliance

Verification that the applicant meets all requirements and that supporting documents are authentic is of utmost importance. Therefore, preventing fraudulent applications and maintaining accurate records will be priorities for the concerned authorities and employers.

2. Wage Competition

Some critics assert that a larger pool of eligible expatriate workers, including dependents, could exert wage pressures on certain sectors. For companies, it becomes a balancing act of either paying competitive wages, thus building sustainable practices.

3. Labor Market Shifts

The employers have to keep an eye on shifting paradigms toward talent sourcing. Bringing in expatriate dependents for the hiring process will engage new payroll systems, contracts, and HR compliance procedures.

What This Means for Expat Communities

For expatriates in Saudi Arabia with families, the introduction of a regulated framework for work permits in the Kingdom of Saudi Arabia would be a big step for them. It provides for:

• The freedom to pursue a career for their spouses or adult children
• To be an employee with legal status and rights
• A greater chance for economic participation and personal advancement

The family should now gain financially and be able to bridge their work and personal lives in the Kingdom.

Conclusion

The regulation of work permits in Saudi Arabia for expatriate dependents is a monumental change in labor laws in the Kingdom. This signals an exercise in trade-offs of two sets of rationalities, i.e., modernizing the labor market, promoting economic participation, and improving the quality of life for foreign residents.

Keeping both employers and expatriates informed about the new regime and being proactive in adapting to it will be key. Employers should upgrade their recruitment practices and HR policies, while expatriate families should determine their eligibility and keep their documentation in order.

In years to come, this regulation can act as an impetus for diversification, competition, and inclusivity in the workforce, granting further legitimacy for expatriates to chase opportunities in Saudi Arabia. Ready to enhance your business operations and navigate Saudi regulations effortlessly? Let Arnifi help you secure work permits and grow your workforce. Get started today!