Filipina domestic workers after shopping at a mall in Riyadh. AFP
Filipina domestic workers after shopping at a mall in Riyadh. AFP
Filipina domestic workers after shopping at a mall in Riyadh. AFP
Filipina domestic workers after shopping at a mall in Riyadh. AFP

Saudi Arabia to allow domestic workers to switch jobs without employer's consent


  • English
  • Arabic

Saudi Arabia will allow domestic workers to switch jobs without their employer's consent, in an attempt to give more freedom to workers, the department for Human Resources and Social Development (HRSD) said on Wednesday.

Workers in Saudi Arabia will have the right to transfer their services if their original employer transfers them to another employer or company without the worker's consent, if the employer terminates the labour contract during the probation period, if there is a delay in paying wages for three consecutive months, failure to pick up the domestic worker from their port of arrival and if there is an existing unresolved official complaint by the domestic worker against the employer for mistreatment and violation of human rights.

The government is already working to transfer workers permits without the employer's consent in 10 cases where employees were not paid their salaries and were assigned potentially hazardous tasks.

Dr Awwad Alawwad, the Human Rights Commission (HRC) president and chairman of the National Committee to Combat Trafficking in Persons, said that the reforms are an example of new policies that provide millions of foreign workers in the kingdom increased job mobility, freedom of movement, and enhanced labour rights.

"This decision comes within the framework of the ministry's constant quest to develop its decisions and legislation to make the Saudi labour market attractive and in line with the best international markets," HRSD said.

Saudis have welcomed the news.

"I have seen employers use helpers at home and their personal businesses, working them overtime and do not care about their physical or mental health. I am really happy that domestic workers will get the right to switch jobs whenever they want and will not feel stuck with one employer," said Ayesha Sabie, a Saudi woman in Jeddah.

The new law aims to preserve the rights of employers, by regulating the domestic labour market and hopes to improve the contractual relationship to help raise efficiency and flexibility of recruitment.

"We have suffered for many years being under the sponsorship of one employer and we were not allowed to change jobs because our iqama [resident permit] was under them. This is great news, now no one has to endure suffering or abuse from anyone and can move with dignity to another job whenever they want," Mary Abdullah, a helper from the Philippines who works in Jeddah, told The National.

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: August 10, 2022, 1:42 PM