Qiwa is an electronic portal on which every employer must register in order to make submissions to the Ministry of HR and Social Development (MHRSD) and to receive notifications as well as document all employee records and register most employee relations actions including contract addendums or amendments and, notices.  Qiwa Contracts are employment contracts generated through this portal and registered with it. 

Can an employer have their own template contract?

Yes, employers will need to have their own offer letter and/or employment contract issued as part of their recruitment and onboarding process. However, once the employee is fully registered with the KSA authorities as an employee; i.e. 

• If they are a foreign national once their visa is transferred (if they are recruited from another employer in KSA) or once their work permit and iqama has been issued; they have a mobile phone and a KSA bank account; or
• If they are a GCC national or KSA national once they are registered with the General Organisation for Social Insurance (GOSI);

The employer must generate a Qiwa Contract for the employee, a link to which is sent to the employee for their acceptance. Once this contract is executed, it will replace all previous contracts (whether generated through Qiwa or whether issued directly from the company). 

How do the two contracts work together?

The MHRSD is placing greater emphasis on the Qiwa Contract and part of the mandatory provisions as a clause stating the following: 

“This contract supersedes all previous agreements and contracts, whether verbal or written, between the parties, if any.”

This wording means that a Labour Court when invited to look at both the Qiwa Contract and any company issued documents would look at when these documents were signed to decide what the terms actually are and also whether the Qiwa Contract can be said to have replaced the previous documents. 

However, it is possible to add additional clauses to the Qiwa Contract and in this section an employer could add references to other documents and thereby incorporate them into the terms and conditions of employment. 

Can I amend the Qiwa Contract template?

Certain provisions in the Qiwa Contract are mandatory and cannot be amended. These clauses set out the minimum information an employment contract must contain. However, an employer can add three optional clauses: confidentiality, post termination restrictions and agreed compensation in the event of an unjustified termination.  An employer can also in the final section of a Qiwa Contract add text as ‘additional’ clauses’ – such clauses are restricted in number and scope (each clause can only be 1000 letters). 

The MHRSD has also used these mandatory clauses to set out requirements for how to operate the contracts eg giving notices during the employment relationship. 

What Does the Qiwa Contract say about Notices?

The following mandatory wording appears in every Qiwa Contract:

“The Parties agree that no notices or correspondence issued for any reason, as per the request of the Party(ies), in relation hereto, will be legally effective unless carried out via the services, methods, or forms approved by the Portal for this purpose and in accordance with its terms and requirements, provided that the same shall be documented on the Portal. This shall apply to all notifications, notices, correspondences letters, and communications directed by one party to the other or to the government or judicial authorities The same will not be legally effective unless carried out accordingly.”

The impact of this wording is significant as it means that notice of termination or a resignation by an employee must be submitted by the employee through Qiwa. 

What happens if there is a dispute about the Qiwa Contract terms and conditions?

The mandatory clauses include the following: 

"This contract is governed by and construed in accordance with the laws and regulations in force in the Kingdom of Saudi Arabia.

Except for the applicable rights and obligations stated in Paragraph (13.3) of this clause, which are under the jurisdiction of the Enforcement Court in accordance with the Enforcement Law, any dispute or disagreement arising from or related to this contract in any form, including any terms and conditions agreed upon by the parties in the Additional Conditions clause if any, shall initially be resolved through amicable settlement If a settlement cannot be reached, the jurisdiction to consider the dispute shall lie with the labour courts in the Kingdom of Saudi Arabia."

This wording means that for any individual with a Qiwa Contract, KSA law will have mandatory application to their employment and they can raise claims in the Labour Courts (the wording implies that arbitration for employment matters is not acceptable.

To discuss further or for additional information on Qiwa Contracts reach out to Sara Khoja.