Saudi Arabia Extends Grace Period for Foreign Workers in Irregular Status Until December 31, 2026
- Xavi
- Jul 11
- 4 min read
Updated: 7 days ago
RIYADH — July 11, 2026 — Saudi Arabia's Ministry of Human Resources and Social Development has granted employers a significant reprieve, extending the grace period to regularize the status of foreign workers with expired or missing work permits until December 31, 2026.
The extension, which was announced just days before the previous June 30, 2026 deadline, applies to two specific categories of foreign workers:
Individuals whose work permits have been expired for over 12 months
Those who were not issued a work permit within six months of joining an establishment
The decision provides employers and workers with an additional six months to complete required legal procedures and avoid severe compliance consequences.
Why the Extension Was Granted
The Ministry of Human Resources and Social Development announced that the extension is part of its continuous efforts to enhance adherence to labor regulations, safeguard the rights of both employers and employees, and give establishments and workers more time to finalize the necessary legal processes.
The move also reflects the ministry's commitment to improving compliance across the Saudi labor market following "positive responses from a number of establishments and workers that have already taken steps to regularize their status".
The extension comes just days after the Qiwa platform had announced that workers with expired work permits would begin to be automatically removed from employers' records starting July 1 if their permits had remained expired for more than three months.
Qiwa Rules: What Hasn't Changed
Despite the grace period extension, several Qiwa platform rules remain firmly in place:
1. Automatic Removal Was Postponed, Not Cancelled
While the automatic removal of workers with permits expired for more than three months was scheduled to begin July 1, 2026, the grace period extension postpones that action. However, the underlying rule remains — workers whose permits have remained expired for more than three months are still subject to automatic removal after December 31, 2026.
2. Employer Liability Continues
Even after a worker is removed from the establishment's records, employers remain liable for all outstanding financial obligations incurred while employing workers without valid work permits.
3. Exception for Residency Permit Validity
A worker will not be removed from the establishment's records if their work permit expiry date differs from their residency permit (Iqama) expiry date, provided the residency permit remains valid for at least 180 days. However, if the remaining validity of the residency permit is less than 180 days, the employer must renew both permits to avoid removal.
4. Outstanding Fees Must Be Settled
Qiwa has emphasized the importance of settling outstanding work permit fees and promptly regularizing the status of affected employees — either by renewing work permits or transferring services — to avoid legal action and financial liabilities.
What Employers Must Do Now
Employers are strongly advised to take the following steps before the December 31, 2026 deadline:
Action | Details |
Review Foreign Workforce Status | Audit all foreign employees' work permit and residency permit validity periods |
Renew Expired Work Permits | Complete renewal procedures for any permits expired for more than 12 months |
Issue New Work Permits | Obtain work permits for workers who joined an establishment more than six months ago without one |
Settle Outstanding Fees | Clear any pending work permit fees and financial obligations |
Check Residency Permit Validity | Ensure Iqama validity is at least 180 days to avoid automatic removal |
Monitor Qiwa Platform | Stay updated on any further regulatory changes or deadlines |
"Not regularizing workers' status by the deadline could lead to financial penalties and other compliance issues."— Saudi Ministry of Human Resources and Social Development
Broader Saudi Labour Market Reforms
The grace period extension is part of Saudi Arabia's broader labour market reforms under Vision 2030. These reforms are creating a more regulated, transparent, and health-conscious employment environment for both Saudi nationals and expatriate workers.
Related Labour Policy Updates:
Saudi Arabia Requires Work Permits for Premium Residency Holders Starting 2026 — A major policy shift now requires all Premium Residency Program (PRP) holders to obtain a separate work permit before commencing any employment in the Kingdom. Previously exempt, holders must now apply through the Qiwa platform, marking a departure from earlier rules.
Saudi Arabia Introduces Mandatory Occupational Fitness Tests & NCD Screenings for All Employees in 2026 — A three-phase rollout of mandatory occupational fitness assessments and non-communicable disease screenings for all employees across the Kingdom, starting with pre-employment screenings and eventually covering every worker in both public and private sectors.
These developments underscore the Kingdom's commitment to strengthening compliance, protecting worker rights, and modernising the labour market in line with international standards.
What This Means for Foreign Workers
For foreign workers in irregular status, the grace period extension provides:
More time to regularize their legal status without facing immediate removal from employer records
Continued eligibility for employment while compliance procedures are completed
Protection from automatic removal during the grace period
However, workers should not delay compliance. The extension is a temporary reprieve, not a permanent exemption.
Regional Context: Saudi Arabia's Labour Market Reforms
The grace period extension is part of Saudi Arabia's broader labour market reforms under Vision 2030, aimed at:
Objective | Description |
Strengthening Compliance | Ensuring employers and workers adhere to labour regulations |
Protecting Worker Rights | Safeguarding the rights of both employers and employees |
Reducing Irregular Workforce | Encouraging formal employment and reducing undocumented workers |
Modernising Labour Market | Aligning with international standards and improving transparency |
Official Resources
For the latest Saudi Arabia work permit updates, Qiwa platform rules, labour law changes, and 2026 Gulf immigration developments, visit: visasupdate.com/news
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