🇸🇦 SAUDI LABOUR LAW — ARTICLE 40 EXPLAINED
Many employees in Saudi Arabia ask:
“If I transfer from one company to another, who is responsible for the transfer fees?”
Here is what Article 40 of the Saudi Labour Law says:
🔹 The employer is responsible for the costs related to transferring the services of a worker who wishes to transfer his services to that employer.
👤 What does this mean for an employee?
If you are legally transferring your employment from Company A → Company B, the new employer (Company B) is responsible for the applicable service-transfer fees.
❌ The employee should not be made responsible for the statutory service-transfer fee simply because he is changing employers.
📌 Article 40 also covers other employer responsibilities
The employer is generally responsible for:
• Recruitment costs of non-Saudi workers
• Iqama issuance and renewal fees
• Work permit fees and renewals
• Certain penalties caused by delayed renewals
• Profession-change fees
• Exit/re-entry visa fees
• Return ticket to the worker’s home country after the employment relationship ends
⚠️ IMPORTANT:
Article 40 establishes who bears the cost. It does not itself state that the first transfer is SAR 2,000, second is SAR 4,000, and third is SAR 6,000. Those amounts should not be presented as if they are written in Article 40.
Also, HRSD’s current Employee Transfer Service page lists the electronic Qiwa service itself as free, while other applicable government charges can be separate.
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