How To Transfer Iqama in Saudi Arabia: Rights, Regulations, and Recourse for Expatriate Workers

Transfer Iqama in Saudi Arabia can be a complex process, especially when dealing with employer approvals, contractual obligations, and platform procedures like Qiwa and Absher. Whether you’re switching jobs, resolving disputes, or planning a move after your Iqama expires, understanding your rights and the legal steps involved is crucial.

At the core of expatriate residency and employment in Saudi Arabia is the Iqama, or residency permit. It is a mandatory prerequisite for accessing essential services such as banking, healthcare, and property rentals. A transferable Iqama is specifically designed to allow an expatriate to legally change their sponsor (employer) without the necessity of exiting and re-entering the country, offering crucial flexibility for those seeking new employment opportunities within Saudi Arabia.

Understanding the Iqama Transfer Process

The Iqama transfer process in Saudi Arabia has been significantly streamlined and is primarily managed through the Qiwa platform, a digital portal designed to facilitate various labor services. The initiation of this process typically falls to the new employer.

General Steps for Sponsorship Transfer

1. Job Offer and Contract Upload: The process commences when a new employer extends a confirmed job offer to the expatriate employee. Subsequently, the new employer is required to upload the detailed employment contract onto the Qiwa platform. For the new employer to be eligible to initiate this, they must meet specific compliance requirements, including being registered and active in the Ministry of Human Resources and Social Development (MHRSD) system, demonstrating at least 80% compliance with the Wage Protection System (WPS) in the preceding three months, and possessing a valid commercial registration and GOSI (social insurance) status.
2. Employee Acceptance: The employee receives a notification on their individual Qiwa account, prompting them to review and formally accept the job offer and the uploaded contract. This acceptance is a mandatory step, as it renders the contract legally binding in the eyes of the HR Ministry and the Saudi government. Employees are typically afforded a 10-day window to either accept or reject the contract; failure to act within this timeframe will result in the contract being automatically canceled.
3. Current Employer Notification and Response: Once the employee accepts the new contract, the Qiwa system automatically notifies the current employer of the transfer request. The current employer is then granted a 14-day period to respond to this request. During this period, the current employer has several options: they can approve the request immediately, approve it with a specified notice period (with a default of 90 days, or a mutually agreed shorter period), or formally reject the request, provided they offer a valid justification for their refusal.
4. Completion of Notice Period (if applicable): If the transfer request is approved with a notice period by the current employer, the employee is required to serve this period before officially transitioning to the new employer. The Qiwa platform tracks the remaining notice period.
5. Finalization by New Employer: Following the necessary approvals and the completion of any applicable notice period, the new employer must finalize the transfer process. This involves paying the required sponsorship transfer fees and updating the employee’s Iqama status via the Absher Business or Muqeem platforms within a specified timeframe (typically 12 to 24 days). Failure to complete this final step within the stipulated period will lead to the transfer request expiring.
6. Issuance of New Iqama: Upon successful completion of all approvals and payments, the new employer is responsible for issuing a new Iqama under their sponsorship, formally completing the transfer of legal residency and employment.

The digitization of the transfer process via Qiwa and Absher represents a significant move towards greater transparency and efficiency in Saudi labor relations. The system’s automated mechanisms, such as the 10-day employee contract acceptance window and the 14-day employer response period, are specifically designed to prevent indefinite delays and streamline transitions. This automation significantly reduces the scope for manual obstruction or arbitrary “sabotage” tactics by either party, pushing for quicker resolutions and compliance.

Required Documents

To ensure a smooth online transferable Iqama application, several key documents must be prepared:

• From Employee: A clear copy of their current valid Iqama (residency permit) and a copy of their valid passport.
• From Employers (New and Current): A signed job contract from the new employer, and a letter from both the existing and new employer consenting to the transfer (where applicable).
• Other Potential Documents: A court ruling (if applicable), and a formal transfer request letter from the new sponsor, attested by the Chamber of Commerce, detailing the reasons for the transfer.

Associated Fees

The financial responsibility for Iqama transfer fees typically rests with the new employer, as stipulated by Saudi Labor Law Article 40. These fees vary based on the number of transfers an individual has undergone:  

Other potential charges include a combined Muqeem insurance and renewal fee of 500 SR for workers over 18. Clearly listing the financial implications is crucial for both new employers (who typically bear these costs) and employees, enabling better financial planning and negotiation during the job offer stage.  

Typical Timelines

The entire Iqama transfer process, from initiation to final approval and issuance of the new Iqama, generally takes between 1 to 3 weeks, contingent upon the timely completion of all required approvals and documentation by both employers and the employee.  

Employee Eligibility Criteria

For an Iqama transfer to proceed, the employee must fulfill certain criteria: they must be currently employed in Saudi Arabia, must not be undergoing another sponsorship transfer concurrently, and must not hold a final exit visa. Additionally, employees marked as “runaways” are ineligible for the transfer process.  

Employer’s Ability to Prevent, Delay, or Sabotage Transfer

Under the evolving Saudi labor laws, the ability of a current employer to prevent, delay, or sabotage an Iqama transfer has been significantly curtailed, especially with the implementation of the Labor Reform Initiative. While employer consent was historically a dominant factor, new regulations provide clear pathways for employees to transfer without such approval under specific conditions.

General Requirement for Consent

Traditionally, and still applicable in certain scenarios, the current employer’s consent is required for an Iqama transfer, particularly if the employee has been in Saudi Arabia for less than one year. This consent is typically provided through the Qiwa platform, where the employer can approve, approve with a notice period, or reject the request.  

Conditions for Transfer Without Employer Consent

The most significant change under the new rules is the expanded set of conditions that allow an employee to transfer sponsorship without the current employer’s explicit approval. These provisions are designed to protect workers and ensure fair labor practices:

• Employer’s Work Permit or Iqama Expiration: If the current employer’s work permit or Iqama has expired and has not been renewed, the employee can initiate a direct transfer.
• No Work Permit Issued: If a work permit is not issued for the employee within 90 days of their arrival in Saudi Arabia, direct transfer is permissible.
• Non-Payment of Salary: Failure by the employer to pay the employee’s salary for three consecutive months is a direct ground for transfer without consent.
• Contract Expiration: Upon the expiration of the employee’s fixed-term contract, they are generally free to transfer to a new employer without the current employer’s permission.
• Employer Violations of Saudization Rules: If an employer breaches Saudization regulations, the Ministry of Human Resources and Social Development (MHRSD) may refuse to renew their work permits. In such cases, affected non-Saudi employees are permitted to transfer to a new employer without the current employer’s consent. This mechanism serves as an enforcement tool for national workforce development goals.
• Employer’s Prolonged Absence: If the employer is absent for a prolonged period due to travel, death, or imprisonment, the employee may be eligible for transfer without consent.
• Employer Involvement in Illegal Activities: Evidence of the employer’s involvement in concealment (tattasur) or human trafficking allows for transfer without consent.
• Employer Failure in Legal Disputes: If the employer fails to appear for two court sessions during a legal dispute with the employee, this can also enable a transfer without consent.
• No Contract on Qiwa: While a documented contract is typically required for transfer, if the labor contract is not registered on the Qiwa platform, it can be a condition for transfer without employer approval. This highlights the importance of the Qiwa platform as the official record for employment relationships.

Employer’s Response Options on Qiwa

When a transfer request is initiated, the current employer receives a notification on Qiwa and has 14 days to respond. Their options include:

• Immediate Approval: The employer can approve the transfer instantly.
• Approval with Notice Period: They can approve the transfer but require the employee to serve a notice period, which defaults to 90 days but can be shorter if mutually agreed upon.
• Rejection with Justification: The employer can reject the request, but they must provide a valid justification for their refusal. Arbitrary rejection without a valid reason is not supported by the system.
• No Action: If the employer takes no action within the 14-day window, the request will automatically be canceled by the Qiwa system. It is important to note that under certain conditions, a request may automatically be granted if the employer fails to respond within 14 days. This automated mechanism is a key feature designed to prevent employers from indefinitely delaying a transfer through inaction.

Legal Recourse for Employer Refusal or Obstruction

Should a current employer refuse to consent to a transfer without valid justification, or attempt to obstruct the process, expatriate workers have clear legal avenues for recourse. The Saudi legal framework, particularly under the Labor Reform Initiative, emphasizes employee protection.

The primary step is to file a complaint with the Ministry of Human Resources and Social Development (MHRSD). This can be done electronically through the MHRSD’s online services platform or mobile application. The MHRSD’s Labor Affairs Agency is specifically tasked with developing labor relations, overseeing labor committees, and mediating disputes between workers and employers.  

The MHRSD process typically begins with a “Friendly Settlement for Labor Disputes”. This amicable settlement stage is the first step in addressing labor claims and is designed to clarify the legal standing of the dispute and facilitate a resolution through mediation. The complaint must be submitted electronically to the settlement office in the city where the last working day occurred, and generally, within 12 months of the dispute arising. Necessary documents, such as employment contracts and any supporting evidence, must be attached.  

If a friendly agreement cannot be reached within 21 working days from the date of the first lawsuit, the case will be referred to the Labor Court. At this stage, the employee can file an electronic lawsuit through the human resources electronic services platform. The Labor Court will then hear the case, gather evidence, and issue a judgment. It is crucial for employees to understand that any clause in an employment contract that contradicts Saudi labor law is considered invalid, and the court may rule in favor of the employee, potentially awarding compensation.  

The Labor Reform Initiative has significantly shifted the power dynamics, making it considerably more challenging for employers to arbitrarily prevent transfers. The emphasis on clear conditions for transfer without consent and robust dispute resolution mechanisms underscores the government’s commitment to fostering a more equitable and transparent labor environment.

Iqama Expiry and Transfer Eligibility

The status of an Iqama, particularly its expiry, carries significant implications for expatriates in Saudi Arabia, affecting both their legal standing and their ability to transfer employers.

Consequences of an Expired Iqama

Maintaining a valid Iqama is paramount for all expatriates in Saudi Arabia, as it serves as proof of legal residency. Failing to renew an Iqama on time can lead to a series of escalating penalties and practical complications:  

• Fines: For the first delay in renewal, a fine of SAR 500 is imposed. This fine doubles to SAR 1,000 for a second occurrence. For a third offense, the fine can escalate to SAR 1,500 or SAR 3,000, and the individual may face deportation.
• Practical Complications: An expired Iqama severely impacts daily life and official processes. This includes the inability to renew or apply for a driver’s license, limited access to medical facilities, restrictions on travel or re-entry into Saudi Arabia, and significant difficulty in transferring sponsorship or changing employers.
• Deportation Risk: Beyond financial penalties, repeated delays in Iqama renewal, particularly a third offense, can lead to deportation procedures. In severe cases, a jail term may also be imposed. Employers also face substantial fines, up to SAR 100,000 for each undocumented worker.

Employer’s Responsibility for Renewal

For most expatriate employees, the employer is legally responsible for ensuring the timely renewal of the Iqama and for covering the associated costs for both the employee and their dependents. If an employer fails to comply with this obligation, employees have the right to file complaints with labor authorities. Article 77 of the Saudi Labor Law specifically stipulates these responsibilities, and non-compliance can result in fines or legal action against both the employee and employer.  

Transfer with an Expired Iqama

Despite the severe penalties associated with an expired Iqama, its expiration can, under specific circumstances, become a condition that allows for a direct transfer to a new employer without the consent of the current employer. This is a critical nuance: while the individual remains liable for the fines and faces practical complications due to the expired status, the legal framework provides a pathway for job mobility. The new employer would typically need to address the expired status, including paying any accrued fines, as part of the transfer process. It is important to note that while an expired Iqama can facilitate a transfer, the individual should proactively address the renewal to avoid escalating penalties and legal issues.  

Final Exit Visa and Transfer

It is crucial to distinguish between an expired Iqama and holding a final exit visa. An employee who has been issued a final exit visa is explicitly ineligible for the Iqama transfer process and cannot accept new contracts or change employers. This is because a final exit visa signifies the termination of residency and the intent to leave the Kingdom permanently.  

Impact of No Contract on Qiwa

The presence and proper registration of an employment contract on the Qiwa platform are foundational to the legal employment relationship in Saudi Arabia and significantly impact the Iqama transfer process.

Importance of Qiwa Contract

The employment contract, once uploaded by the employer and accepted by the employee on the Qiwa platform, is considered the sole legally binding document in the eyes of the HR Ministry and the Saudi government. This digital documentation ensures transparency and provides a clear record of the terms and conditions of employment.  

Transfer Eligibility with No Contract

While a documented work contract is generally a prerequisite for a smooth transfer, the absence of such a contract on Qiwa can, paradoxically, become a ground for transfer without the current employer’s consent. Specifically, if an employee has not received a work contract within three months (or 90 days) of their arrival in Saudi Arabia, they are eligible for a direct transfer without needing their current employer’s approval. This provision serves to protect employees from employers who fail to formalize their employment status.  

Implications for the Transfer Process

The entire Iqama transfer process, as outlined in the Qiwa system, hinges on the existence and acceptance of a legally binding employment agreement. Without an initial contract uploaded and accepted by the employee, the subsequent steps of the transfer process, such as the new employer submitting a job offer and the employee accepting it, cannot proceed or be legally recognized. Therefore, while the absence of a contract can be a trigger for transfer under specific violation clauses, the new employer must still upload a formal employment agreement onto the Qiwa platform to initiate and complete the transfer process. The system is designed such that without this foundational contractual agreement, there is no legal basis for the transfer to occur.  

New Rules and Future Outlook (2025 and Beyond)

The Saudi Labor Reform Initiative (LRI) and its amendments, particularly those taking effect in February 2025, signify a profound and ongoing transformation of the Kingdom’s labor landscape. These changes are not isolated administrative adjustments but are integral to the broader national objectives of Vision 2030, aiming to create a dynamic, competitive, and fair labor market.

LRI Amendments (Effective February 18, 2025)

The amendments to the labor law, effective February 18, 2025, introduce “long-term structural changes” that enhance job security, streamline employer-employee relationships, and foster a more conducive and transparent work environment. These reforms set new standards for labor protections globally, reflecting Saudi Arabia’s commitment to modernizing its labor practices.  

Key Changes for Expatriates

The updated regulations bring several significant changes directly impacting expatriate workers:

• Mandatory Fixed-Term Contracts: Non-Saudi employees are now mandated to have a written, fixed-term contract. If no duration is specified, the contract is automatically considered a one-year agreement from the commencement of work. This provides greater clarity and predictability for expatriate employment.
• Eased Resignation Procedures: The process for resignation has been made more employee-friendly. A resignation is automatically accepted if the employer does not respond within 30 days, although employers can delay acceptance for up to 60 days with written justification. Employees also retain the right to withdraw their resignation within 7 days unless it has already been accepted.
• Extended Probation Period: The maximum probationary period has been extended to 180 days (from the previous 90 days), offering greater flexibility for both employers and employees to assess suitability.
• Increased Employee Mobility: A cornerstone of the new rules is the significant increase in employee mobility. Expatriates can now change employers without the current employer’s consent under various conditions, including contract expiration, delays in salary payments (more than 3 months), employer failure to renew Iqama, or if the labor contract is not registered on Qiwa. This represents a fundamental shift from the traditional sponsorship system, empowering employees with greater control over their career paths.

Employer Compliance and Penalties

The new amendments mandate improved penalties for non-compliance with Saudization quotas and unauthorized recruitment. The Ministry of Human Resources and Social Development (MHRSD) is authorized to withhold work permit renewals for violations. Crucially, if a business fails to meet its Saudization targets, non-Saudi employees are permitted to transfer employers without the consent of their current employer. This mechanism reinforces the government’s commitment to its Saudization goals while simultaneously providing an additional pathway for employee mobility in cases of employer non-compliance.  

Strategic Intent

The ongoing labor reforms are deeply intertwined with Saudi Arabia’s Vision 2030, which seeks to diversify the economy and attract global talent and investment by fostering a more business-friendly and equitable environment. The “National Policy for the Elimination of Forced Labor,” effective February 20, 2025, further underscores the Kingdom’s commitment to eradicating all forms of forced labor. These policies collectively demonstrate a long-term, systemic intent to reduce employer leverage over employees and align Saudi labor practices with international standards. The emphasis on transparency, digital platforms, and employee rights indicates that these changes are designed to be enduring, creating a more predictable and fair labor market for expatriates.  

Legal Recommendations

The Saudi Labor Reform Initiative has ushered in a new era for expatriate workers, significantly enhancing their rights and mobility within the Kingdom. The ability of a current employer to prevent, delay, or sabotage an Iqama transfer has been substantially diminished by new regulations and the robust digital infrastructure of the Qiwa platform. Employer consent is no longer universally required, with numerous conditions now allowing for direct transfers, particularly in cases of employer non-compliance or contractual breaches.

While an expired Iqama incurs penalties and practical complications, it is also explicitly recognized as a condition enabling transfer without employer consent, offering a pathway for mobility even in a non-compliant status. The emphasis on digital contracts via Qiwa ensures legal clarity, and the absence of such a contract can also serve as grounds for transfer.

The reforms, particularly those effective in 2025, are deeply rooted in Saudi Arabia’s Vision 2030 and its commitment to eliminating forced labor, signifying a long-term, strategic shift towards a more transparent, efficient, and employee-centric labor market. The MHRSD and the labor courts provide clear avenues for redress should disputes arise.

Recommendations for Expatriate Workers:

• Proactive Monitoring: Regularly check Iqama expiry dates through the Absher portal and communicate proactively with employers regarding renewal.
• Understand Your Contract: Ensure your employment contract is documented on the Qiwa platform and understand its terms, especially the duration and notice periods.
• Leverage Qiwa: Utilize the Qiwa platform for all employment-related actions, including reviewing job offers and tracking transfer requests. The system’s automated timelines are designed to prevent indefinite delays.
• Document Everything: Maintain meticulous records of salary payments, communications with employers, and any instances of non-compliance, as these can be crucial evidence in case of a dispute.
• Know Your Rights: Familiarize yourself with the conditions under which transfer without employer consent is permissible. This knowledge is empowering and can guide decision-making.
• Seek Recourse: If an employer attempts to obstruct a legitimate transfer or violates labor laws, promptly file a complaint with the MHRSD. The friendly settlement process is the first step, followed by recourse to the Labor Court if necessary.
• Consult Legal Professionals: For complex cases, or if facing significant challenges, engaging with legal experts specializing in Saudi labor law is advisable to ensure all rights are protected and processes are followed correctly.

By understanding these evolving regulations and utilizing the available digital platforms and legal channels, expatriate workers can navigate the Iqama transfer process with increased confidence and security in Saudi Arabia’s transforming labor landscape.