Employers get six more months to regularise expired permits as Kingdom steps up labour market reforms
Saudi Arabia has extended the deadline for employers to regularise expired work permits for foreign workers until December 31, 2026, giving businesses an additional six months to meet compliance requirements before stricter enforcement begins.
The Ministry of Human Resources and Social Development (MHRSD) announced the extension after the earlier deadline of June 30, 2026. The move gives employers more time to renew expired work permits and complete pending registrations while supporting the Kingdom’s wider labour market reform agenda.
Extension covers expired and pending work permits
The revised deadline applies to expatriate workers whose work permits expired more than 12 months ago. It also covers employees who have not received a work permit within six months of joining an organisation.
Until the end of 2026, employers can renew permits or complete registrations without affected workers being automatically removed from company records on Saudi Arabia’s Qiwa digital labour platform. The government has postponed the automatic removal process to allow businesses to close outstanding compliance gaps.
Saudi Arabia warns employers against delaying compliance
Authorities have urged employers to use the extended grace period to review workforce records and resolve pending permit issues. However, businesses that miss the new deadline could face financial penalties, enforcement action and the removal of affected workers from the Qiwa system. Such measures could disrupt workforce planning and employee legal status.
The extension forms part of Saudi Arabia’s broader effort to strengthen labour market governance, improve transparency and ensure employers follow employment regulations.
Labour reforms continue under Vision 2030
Saudi Arabia has introduced several labour reforms in recent months as part of its Vision 2030 economic transformation programme.
In June, the Kingdom ended the work permit exemption for Premium Residency holders. As a result, all Premium Residency holders must now obtain separate work permits before taking up employment.
The government has also increased penalties for labour law violations. Employers who hire foreign workers without valid work permits now face fines of SR10,000 for each employee found in violation.
Additionally, authorities expanded the list of labour offences to include undocumented employment contracts, illegal recruitment, child labour, unlawful passport confiscation and violations of maternity and childcare protections. Companies that fail to register employment contracts digitally can also receive fines of SR1,000 for every affected employee.
The latest extension gives employers more time to comply. At the same time, it signals that Saudi Arabia intends to enforce labour regulations more strictly once the grace period ends.
