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Saudi Arabia Allows Transfer of Eligible Foreign Workers from Companies to Individual Employers

JEDDAH — Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has introduced a new electronic service allowing individuals to request the transfer of eligible foreign workers from private-sector establishments to individual employers, subject to specific regulations and conditions.

The initiative is designed to regulate the transfer of expatriate workers from private-sector companies and establishments to individuals for employment in domestic professions, according to a report by Okaz newspaper citing ministry sources.

The new service provides an official mechanism for eligible workers to move from company employment to an individual employer. However, the transfer is not available to all foreign workers, as applicants and workers must meet a number of requirements set by the ministry.

Who Is Eligible for Transfer?

One of the main requirements is that the foreign worker must have a valid work permit.

The worker must also not be employed in a high-level profession covered by the restrictions. These include educational, technical, healthcare and specialist occupations, as well as professions that have been fully Saudized and are therefore reserved for Saudi nationals.

In addition, the position to which the expatriate worker will be transferred must be officially classified as a domestic profession.

This means the new service should not be interpreted as a general rule allowing all expatriate employees to transfer freely from companies to individual sponsors. The mechanism specifically applies to eligible workers transferring into domestic employment and remains subject to government approval and applicable regulations.

Documents Required for Transfer

According to the ministry, applicants are required to provide an electronically certified waiver from the worker’s previous employer, authenticated by the relevant chamber of commerce.

The new individual employer must also demonstrate sufficient financial capability. This can be done by providing a salary certificate or a bank statement.

Applicants must also submit a copy of the foreign worker’s residency permit bearing the expatriate’s fingerprint and signature.

The application must clearly identify the domestic profession in which the worker will be employed and provide the new employer’s personal information, including their name and national identification number.

Supporting documents must be uploaded electronically. Accepted file formats include PDF, JPG, JPEG, PNG, DOCX and XLSX, with each individual file limited to a maximum size of 3 MB.

Wage Protection Program for Domestic Workers

The introduction of the new transfer service comes alongside the mandatory implementation of Saudi Arabia’s Wage Protection Program for domestic workers.

The program is designed to ensure that domestic workers receive their salaries through approved payment channels, providing a documented record of wage payments.

Authorities say the system is intended to protect the rights of both workers and employers, increase transparency in contractual relationships and strengthen compliance with labor regulations.

The wage protection mechanism is particularly significant for foreign workers moving from companies into domestic employment, as salary payments will be documented through approved channels rather than relying solely on informal cash arrangements.

Additional Domestic Workers May Carry SR9,600 Annual Fee

Saudi authorities have also maintained rules governing the number of domestic workers an individual may employ before additional fees apply.

An annual fee of SR9,600 is imposed for each additional domestic worker exceeding the permitted limit.

For Saudi citizens, the threshold is more than four domestic workers, while for resident expatriates, the threshold is more than two domestic workers.

Certain humanitarian cases are exempt from the additional fee, including circumstances involving people with disabilities and individuals suffering from chronic or serious illnesses, subject to applicable requirements.

Important Clarification for Expatriate Workers

The new service represents another expansion of Saudi Arabia’s electronic labor-management system, but foreign workers should carefully check their eligibility before attempting to transfer.

Most importantly, the policy does not give every foreign worker an automatic right to leave a company and transfer to an individual employer.

The worker must satisfy the ministry’s eligibility requirements, hold a valid work permit, not fall under excluded professional categories, and transfer into an occupation officially classified as domestic work.

The required approval and documentation from the previous employer must also be secured as part of the process.

For Filipino workers and other expatriates in Saudi Arabia considering such a transfer, verifying the proposed arrangement through official government channels is advisable before signing contracts, paying fees or agreeing to leave their current employment.

The new electronic service ultimately provides a regulated pathway for eligible expatriate workers to move from private-sector establishments to individual employers while bringing such transfers under Saudi Arabia’s formal labor and domestic-worker systems.

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