In a decisive regulatory move aimed at strengthening Saudi labor market compliance, Qiwa platform — under the Ministry of Human Resources and Social Development — has issued an official clarification regarding workers with expired work permits. The decision takes effect from June 30, 2026, imposing automatic actions on establishments that fail to renew their employees’ work permits on time. This update carries significant weight for business owners — particularly foreign-owned establishments — as the financial and administrative consequences of overlooking it can reach tens of thousands of riyals and disrupt entire company operations.
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What Did Qiwa Actually Say?
In its official statement issued in May 2026, Qiwa platform identified three main scenarios that every business owner must understand precisely, because the worker’s fate and financial obligations differ fundamentally between each case:
Case 1: Work Permit Expired for 3 Months or More
If a worker’s permit remains expired for more than 3 months after June 30, 2026, Qiwa platform will automatically deregister the worker from the establishment’s record. More critically: the establishment bears all accumulated financial obligations on the worker throughout the entire period the work permit was expired — from the expiration date until the actual deregistration date. These obligations may include delayed renewal fees, late penalties, and dependent fees.
Case 2: Iqama Valid for More Than 180 Days with Expired Work Permit
This is the only case where the worker will NOT be deregistered from the establishment. The reason: Qiwa recognizes that Iqama and work permit expiration dates may technically differ. If a worker has a valid Iqama for more than 180 days and only a short period has passed since the work permit expiration, the employer is granted a window to remedy the situation without immediate penalties. However, this is not a license to delay — it is an exceptional grace period only.
Case 3: Iqama Validity Less Than 180 Days with Expired Work Permit
Qiwa considers this the most dangerous case. The employer and worker must take immediate action to renew both the Iqama and work permit before entering the deregistration window — otherwise, the decision applies in the same manner as Case 1. Delay here opens the door to worker deregistration within weeks, not months.
Why This Decision Targets You If You Run a Business in Saudi Arabia
Some view this decision as a routine measure, but the practical implications reach every aspect of managing your company in the Kingdom:
• Significant financial obligations possibly reaching tens of thousands of riyals per worker, charged in a single payment upon deregistration.
• Disruption to Saudization ratios (Nitaqat) — deregistering an expatriate worker may change your establishment’s zone, affecting visa quotas and Qiwa services.
• Halt to sensitive operational activities if the deregistered worker held a key position.
• Loss of training and qualification investment spent on the worker over years.
• Complicated replacement recruitment, as deregistration enters the Ministry’s record for the establishment.
• Disruption to client contracts that rely on the presence of a specific technician or supervisor.
