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The Saudi Ministry of Human Resources and Social Development (MHRSD) has recently enhanced the Qiwa Portal to streamline labor relations and safeguard the rights of both parties. A critical update is the enforcement of the mandatory Digital Notice for the non-renewal of employment contracts. The electronic change is making sure that all the intentions of the contract are recorded in an open and transparent way, no longer will there exist the informal paper-based or email notifications. According to the new rules, the inability to issue such a notice using the official platform may mean that the agreement is automatically renewed and this may cause unexpected legal and financial risks to both the employers and employees.
The Digital Notice is now the only legally recognized method to inform a party about the intention not to renew a fixed-term agreement. Under the new labor laws, the period of serving this notice should be within the period stipulated in the contract, usually 60 days before the time of expiration. By utilizing the Qiwa Portal, the system timestamps the notification, providing an immutable record that prevents disputes regarding whether a deadline was met. This automation is one of the pillars of the digital transformation of the Saudi vision 2030 in the labor market.
The steps to follow when issuing a non-renewal notification successfully are:
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