Proposed amendments to the Labour Law: Introducing work visa categories and skill-based classification

At a glance

• A Ministerial Resolution has proposed three key amendments to the Labour Law Executive Regulations (Executive Regulations).
• The three changes include an introduction of a work visa and permit categories, the establishment of terms and conditions for obtaining a work visa, and an outline for transitioning between the permit categories.
• These proposed amendments were prompted by the outcome of a study of the Executive Regulations.
• They foster Saudi Arabia's aim is to achieve an optimal balance in the labour market by encouraging the attraction and retention of highly skilled expatriates while maintaining a smooth flow of standard-skilled expatriates.

A Ministerial Resolution has proposed three key amendments to the Executive Regulations. These proposed changes include:

• The introduction of a work visa and permit categories: This includes a detailed reference explaining these categories, enabling the targeting of specific skill levels across various sectors of the labour market. The aim is to achieve an optimal balance in the labour market by encouraging the attraction and retention of highly skilled expatriates while maintaining a smooth flow of standard-skilled expatriates.
• The establishment of terms and conditions for obtaining a work visa: This is designed to enhance the quality of the workforce by transferring the expertise of high-skilled expatriate workers to Saudi workers through on-the-job training and mentoring. It also aims to improve the performance and operational efficiency of expatriate workers, leading to increased total labour market productivity.
• An outline for transitioning between these categories: This nurtures a culture of innovation and commitment that offers distinctive growth opportunities. It invests in the future by attracting leading global talent and contributes to the achievement of the Saudi Standard Classification of Educational Levels and Specialisations objectives, in accordance with the Council of Ministers.

These proposed amendments were prompted by the outcome of a study of the Executive Regulations. The study identified a need for a new article that classifies and specialises work based on skill level, aiming to provide clarity to the existing system and establish a connection with the unified Saudi classification of professions. Further, the study recommended that work visas should be categorised using the same criteria proposed for work permit classification. This recommendation is contingent on the inclusion of the necessary text in an article of the Executive Regulations.