Saudi Arabia adds 'wage clause' in employment contracts to address non-payment of wages

RIYADH: The Saudi Ministry of Human Resources and Social Development, in collaboration with the Ministry of Justice, announced the introduction of a wage clause in notarized employment contracts, making them enforceable documents in cases of wage disputes.

According to a report by Saudi Gazette, this significant step aims to strengthen labor market protections and promote fairness and commitment between employers and workers. The initiative is facilitated by a technological link between digital labor platforms the Qiwa and Najiz platforms.

The wage clause serves as a legal document allowing either the worker or employer to submit an enforcement request in case of unpaid wages, without requiring additional paperwork. Verification is automatically completed through integration with the Madad platform.

This mechanism speeds up dispute resolution, facilitates access to workers’ rights, fosters a stable work environment, and increases compliance. To benefit from this enforcement process, employment contracts must be registered on the Qiwa platform, and an execution number must be obtained from the Ministry of Justice’s documentation center.

If the worker does not receive their full wage within 30 days of the due date, or if they receive it partially after 90 days, they can submit an electronic implementation request through the Najiz platform. The other party, the employer, has the right to object within five days from the notification date.

The implementation will roll out in three phases, starting October 6, 2025, for new or updated contracts. It will then include renewed fixed-term contracts starting March 6, 2026, and ending with indefinite-term contracts in the third phase, which begins on August 6, 2026. This will give various establishments and workers the opportunity to gradually adapt to the new procedure.

The ministry urged all employers and workers to review detailed guidance, including procedures, eligibility, and frequently asked questions, available on its official website.

This initiative reflects the ministry’s commitment to building a transparent work environment by using digital tools to regulate obligations and protect rights proactively. It is expected to reduce labor disputes, improve contractual relationships, and ensure fair enforcement of wage rights for all workers with authenticated contracts.