Authenticated Employment Contract Initiative | SMASCO

The Saudi labor market is undergoing a significant transformation in its employment contract framework with the launch of the Authenticated Employment Contract Initiative by the Ministry of Human Resources and Social Development, in partnership with the Ministry of Justice.

This initiative aims to elevate the wage clause in employment contracts to the status of an official enforceable instrument, enabling workers to claim unpaid wages directly through the Najiz platform—without the need to initiate legal proceedings.

This marks a major milestone in enhancing transparency and protecting the rights of both employees and employers, aligning with the Kingdom’s broader efforts to foster a more equitable, trustworthy, and digitally integrated work environment.

Importance of Contract Authentication in Saudi Arabia

In Saudi Arabia, authenticating employment contracts is more than a procedural formality—it’s a cornerstone of transparency and fairness in the labor market. Before this initiative, many workers operated under unverified agreements, leading to confusion and disputes. Through the Authenticated Employment Contract, every term—salary, job title, benefits, and working hours—is verified by the Ministry of Human Resources and Social Development (MHRSD).

This authentication builds mutual trust between employers and employees while supporting expatriate workers by streamlining residency and work permit renewals.

Key Benefits:

Legal protection: Safeguards the rights of both parties.
Transparency: Prevents hidden clauses or unauthorized modifications.
Compliance: Ensures alignment with Ministry regulations.
Security: Digital documentation keeps data safe and accessible.
Dispute prevention: Establishes a clear legal reference for both sides.

Difference Between Authenticated and Regular Employment Contracts

Documented Contract: Officially approved by the Ministry of Human Resources and Social Development and stored digitally, giving it legal authority.
Regular Contract: A private agreement that is not officially documented, which weakens its legal protection.
Documented Contract with Executive Enforceability: Includes a wage clause that is considered an executive instrument under the new partnership with the Ministry of Justice, allowing the employee to claim unpaid wages directly without the need to file a lawsuit.

What Is an Authenticated Employment Contract?

Definition

An Authenticated Employment Contract is a formal work agreement that is electronically verified through the “Qiwa” platform. It outlines all essential job details, including the job title, duties, salary, allowances, working hours, leave policies, and the terms for contract renewal or termination. The contract must be mutually approved by both the employer and the employee, under the oversight of the Ministry of Human Resources and Social Development.

Responsible Authorities

Ministry of Human Resources and Social Development (MHRSD): Oversees the entire contract documentation system and ensures compliance with regulations.
Ministry of Justice: Grants documented contracts executive enforceability for the wage clause through technical integration.
Qiwa Platform: The electronic platform through which contracts are created and electronically approved by both parties.
General Organization for Social Insurance (GOSI): Automatically links the documented contract data to the social insurance system for worker registration.
Absher Platform: Ensures the integration of documented contract data with the worker’s residency and work permit information.

Main Information Included in an Authenticated Contract

Employee and employer full details
Job title, role, and responsibilities
Basic and total salary (including allowances)
Benefits and end-of-service entitlements
Working hours and rest periods
Leave policy and public holiday provisions
Duration and start date of employment
Termination clauses and renewal conditions
Unique digital authentication number for verification

Each of these details becomes part of the official employment record, reducing ambiguity and protecting both parties’ rights.

The Authenticated Employment Contract Initiative by the Ministry of Labor

Objectives of the new initiative granting “Executive Enforceability”

The Ministry of Human Resources and Social Development (MHRSD), in collaboration with the Ministry of Justice, launched this initiative as part of Saudi Arabia’s Vision 2030. Its key objectives are to:

Protect the rights of both employees and employers
Strengthen the reliability of contractual relationships
Accelerate the resolution of wage disputes by allowing direct referral for enforcement
Support digital transformation and integration between government systems
Enhance the attractiveness and efficiency of the Saudi labor market for both local and international workers

These goals align with Vision 2030’s ambition to build a modern, appealing work environment.

Eligibility Requirements to Benefit from the Initiative

Having a documented and approved employment contract that complies with the new Executive Contract Model
Contract documentation must be completed through the Qiwa platform, integrated with the Ministry of Justice to ensure the wage clause is enforceable

Phases of Implementing the Authenticated Employment Contract Initiative

The Authenticated Employment Contract Initiative will be implemented in three main phases to ensure a smooth and gradual transition to the new enforceable contract system. The rollout follows the schedule announced by the Ministry of Human Resources and Social Development, in collaboration with the Ministry of Justice:

Phase One – October 6, 2025: This phase applies to all newly issued employment contracts, as well as existing contracts that are amended or updated after the official launch of the initiative.
Phase Two – March 6, 2026: This stage covers active fixed-term contracts, which will be incorporated into the new enforceable contract framework upon the conclusion of their current term.
Phase Three – August 6, 2026: This final phase addresses ongoing open-ended contracts, completing the transition toward fully authenticated and legally enforceable employment contracts across the labor market.

This phased approach is designed to ensure a balanced, efficient implementation for both employers and employees, while maintaining full alignment with the legal and technical frameworks of the relevant ministries.

Employment Contract Documentation Process

Steps for Contract Documentation via Qiwa:

Employer Login: The employer logs into the Qiwa platform using the business’s credentials
Contract Creation: The employer enters details such as employee information, salary, and contract duration
Employee Review & Approval: The employee reviews the contract online and either approves it or requests changes
Contract Approval & Documentation: Upon mutual agreement, the contract is automatically approved by the Ministry
Access & Sharing: Both parties can print or download the contract at any time

Wage Components Eligible for Enforcement

The executive enforceable wage clause includes:

Basic salary
Housing and transportation allowances
Any other monetary allowances officially included in the contract

When Can an Employee File for Enforcement if Wages Are Not Paid?

If the full wage is not received within 30 days from the due date
If only a partial payment is made and the remaining amount is not paid within 90 days from the due date

Steps to Submit an Enforcement Request

Access the Najiz platform (Ministry of Justice)
Select the service: “Request Enforcement of an Executive Instrument”
Fill in the required information electronically

How Is Wage Payment Verified?

Wage data is automatically verified through the Mudad platform, which electronically records salary payments and their timing.

Employer’s Right to Object

The employer has the right to submit a formal objection within five business days from being notified of the enforcement request, via the Najiz platform.

Advantages for Employees and Employers

Benefits for Employees

Guaranteed legal protection
Transparency regarding salary, job duties, and benefits
Easy access to contracts from any device
Simplified procedures for residency and work permit renewals

Benefits for Employers

Compliance with Saudi labor laws and regulations
Reduced legal risks and potential fines
Centralized digital HR management
Stronger trust and reputation among employees

By using the authenticated system, employers demonstrate commitment to fair labor practices, which enhances the company’s credibility in the local and international markets.

Final Thoughts

The Authenticated Employment Contract Initiative marks a turning point in Saudi Arabia’s labor governance. It guarantees fairness, prevents disputes, and paves the way for a transparent and digitally advanced employment environment.

By ensuring that every contract is authenticated, Saudi Arabia reinforces its commitment to workers’ rights and corporate accountability, setting new benchmarks for the region.

From this standpoint, SMASCO– the Saudi Manpower Solutions Company – is committed to implementing the best practices in authenticating employment contracts and ensuring the rights of both clients and employees alike.

To learn more about Smasco’s services, please visit the SMASCO Website.

FAQs:

What Are the Steps to Authenticate a Contract via the Ministry of Labor?

Employers should log into the Qiwa platform, create the contract, have the employee review and approve it, and then allow the system to authenticate it automatically.

Can a Contract Be Modified After Authentication?

Yes. Modifications are allowed, but both the employer and employee must approve the new terms through Qiwa before they become valid. This ensures all changes are legally recorded.

What Is the Difference Between an Authenticated and an Electronic Contract?

An authenticated contract is officially verified and approved by the Ministry of Labor, whereas an electronic contract might simply be digitally signed without official validation or legal enforceability.