Saudi Arabia Extends Grace Period To Renew Foreign Workers’ Expired Work Permits

Saudi Arabia has extended the grace period for employers to regularise expired work permits for foreign workers until December 31, 2026, giving businesses an additional six months to resolve outstanding compliance issues.

The extension, announced by the Saudi Ministry of Human Resources and Social Development, replaces the previous June 30, 2026, deadline and is intended to help employers meet work permit requirements before stricter enforcement measures take effect.

The revised deadline applies to expatriate workers whose work permits expired more than 12 months ago, as well as employees who were not issued a work permit within six months of joining their employer.

The extension also postpones the automatic removal of affected workers from employers’ records on the Kingdom’s Qiwalabour platform, a process that was initially scheduled to begin after the earlier deadline.

Under the previous timeline, foreign workers whose permits had remained expired for more than three months were to be automatically removed from their employers’ records in the Qiwa system.

With the new deadline, employers now have until December 31, 2026, to renew expired permits or complete pending work permit registrations.

Saudi authorities have urged employers to review their workforce records and resolve all outstanding work permit issues before the new deadline, warning that noncompliance could result in regulatory sanctions.

Businesses that fail to meet the deadline may face financial penalties, compliance enforcement measures and the removal of affected employees from their records on the Qiwa platform, potentially disrupting workforce management and employment status.

The extension came weeks after Saudi Arabia introduced stricter labour regulations as part of wider efforts to strengthen compliance in its employment market.

In June, the Kingdom ended the work permit exemption previously granted to holders of its Premium Residency programme, making it mandatory for Premium Residency holders seeking employment to obtain a separate work permit before taking up jobs.

Saudi authorities also introduced tougher penalties for employers who breach labour regulations. Under the revised framework, employers who hire foreign workers without valid work permits face fines of SR10,000 (about $2,666) for each affected worker.

According to the Ministry of Human Resources and Social Development, the reforms are intended to formalise the labour market, curb abuses and ensure compliance with existing employment laws.

The updated regulations also broaden the scope of labour violations to include undocumented employment contracts, illegal recruitment practices, child labour, unlawful retention of employees’ passports, and breaches of maternity and childcare protections.

In addition, employers who fail to register employment contracts digitally are liable to a fine of SR1,000 (about $266) for each affected employee.