How Does the Qiwa Platform Support the Contractual Relationship Between Employee and Employer?

The initiative to improve the contractual relationship between employees and employers is one of the core objectives and visions upon which the Qiwa platform is built. The platform supports and develops this relationship through a set of services and regulatory tools, most notably:

• Contract Management and Documentation: The platform provides a dedicated system for creating and documenting employment contracts for enterprise staff (both Saudi nationals and residents) and sending them for final approval. It also offers a dashboard to track contract statuses, alongside the ability to submit requests for terminating the contractual relationship, tracking notice periods, and managing contract start and end dates.

• Organizing and Approving Work Regulations: The platform seeks to regulate the internal environment of enterprises by approving internal work regulations between workers and employers. This helps create a legally secure work environment and reduces labor disputes that may arise between the two parties. The platform also provides a “customized work regulation” template, giving enterprise owners the flexibility to add specific terms and benefits for employees during contract signing.

• Employee Satisfaction Index: The platform offers a service allowing employees to evaluate their enterprises through electronic surveys sent and completed anonymously. The goal of this index is to elevate the level of interaction between all parties, raise transparency, and convey employee feedback to business owners so they can improve the work environment.

Most Common Mistakes Made by Companies When Using the Qiwa Platform

1. Delaying or Neglecting Digital “Contract Documentation”

• Requirement: The Ministry of Human Resources mandates documenting 100% of contracts for all employees (Saudis and non-Saudis).

• The Mistake: Neglecting to document contracts immediately upon an employee joining the enterprise, or leaving contracts pending in employee accounts without acceptance.

• The Impact: A drop in platform compliance rates, which may affect the enterprise’s eligibility to benefit from certain services according to platform regulations, such as issuing instant visas or transferring services of new employees.

2. Random Labor Transfers Without Monitoring “Nitaqat”

• The Mistake: Submitting requests to transfer the sponsorship of new employees without reviewing the predictive “Nitaqat” calculator within the platform.

• The Impact: Accepting the transfer of a single expatriate employee’s services can suddenly drop the enterprise from the Green band to the Yellow or Red band. This restricts access to visa services or other services tied to the enterprise’s Nitaqat bracket.

3. Profession Mismatch with “Professional Verification” and “Accreditation” Requirements

• The Mistake: Choosing random job titles for employees to facilitate procedures without paying attention to legal profession requirements.

• The Impact: Certain professions mandatorily require a “Professional Verification” certificate (such as craft workers, engineers, and technicians) or linkages with specific authorities (such as the Saudi Council of Engineers or the Saudi Commission for Health Specialties). Selecting these professions without actual accreditation can lead to delays or rejections of procedures until regulatory requirements are met.

4. Unfamiliarity with “Notice Period” Mechanics During Service Transfers

• The Mistake: Believing that the current enterprise’s approval of an employee’s service transfer means an immediate transition, or ignoring the notice period (which can reach up to 90 days).

• The Impact: Leaving the employee hanging between both enterprises while their fees or absences continue to be calculated against the current enterprise, causing labor disputes and wasted time.

5. Lack of Synchronization Between Platforms (Qiwa – Mudad – GOSI)

• Note: The labor ecosystem is digitally interconnected, and a defect in one platform affects the other.

• The Mistake: Modifying an employee’s salary in the “Mudad” (Wage Protection) or “GOSI” (Social Insurance) platform without updating their contract via an official addendum on the “Qiwa” platform, or vice versa.

• The Impact: The appearance of a “compliance violation” in the Wage Protection System, leading to remarks or penalties that must be corrected according to applicable regulations due to mismatched government data regarding the actual salary versus the documented contract.

6. Omitting “Annual Training Disclosure”

• The Mistake: Enterprises with 50 or more employees ignoring the mandatory annual disclosure of training data (during the period announced by the Ministry of Human Resources and Social Development or the Qiwa platform).

• The Impact: Facing potential impacts on compliance levels and eligibility for certain services according to ministerial instructions for failing to comply with knowledge localization and training plans.

7. Defective Drafting of “Work Regulation Rules”

• The Mistake: Relying on the general standard regulation without customizing it to suit the company’s business nature, or neglecting to update and document the regulation via the platform. The system strictly defines the elements an employer is allowed to modify in the approved standard regulation:

  • Annual calendar (Hijri / Gregorian).

  • Leave system.

  • Working hours (regular and seasonal).

  • Working days and weekly rest days.

• The Impact: The absence of a legal shield for the company when imposing penalties or deductions on employees. The enterprise may face challenges applying certain regulatory procedures before labor courts if the internal regulations are not approved and documented in Qiwa.

When Do You Need a Company to Manage the Qiwa Platform?

Key scenarios where your enterprise needs to outsource Qiwa platform management to a specialized management company:

1. Growth in Workforce and Increase in Operational Operations

When the number of employees exceeds a threshold where the business owner or traditional accountant can no longer handle daily tracking. This requires ongoing management of sensitive operations such as:

• Transferring services (employee sponsorship) and accurately tracking legal notice periods.

• Issuing and renewing work licenses and visas (instant or compensatory) without delay, as work license issuance and renewal services require specific regulatory conditions:

  • The enterprise’s Nitaqat category must be Low Green or above.

  • The profession must not be restricted to Saudi nationals (male or female).

  • The enterprise’s activity must not fall under farmers and herders.

  • All licenses must be valid, subscription to the National Address active, commitment to the Wage Protection Program met, and the enterprise status active.

• Modifying and correcting professions to match approved enterprise activities to prevent application rejections.

2. Protecting Enterprise “Nitaqat” and Preventing Service Suspension

Qiwa relies on the “Nitaqat” system to evaluate job Saudization rates. Utilizing a specialized company helps minimize the likelihood of dropping into the Red or Yellow bands, which causes total freezing of enterprise services. Experts handle:

• Proactively calculating Saudization percentages and anticipating any flaws before they occur.

• Efficiently managing allocation balances according to Ministry of Human Resources classifications.

3. Compliance with Strict Mandatory Disclosures and Regulations

The Ministry imposes periodic obligations and severe penalties on non-compliant enterprises via Qiwa. These transactions require complete legal awareness, such as:

• Digitally documenting contracts: Mandating 100% documentation of all employee contracts to benefit from integrated platform services.

• Training disclosure: A mandatory annual obligation for enterprises (from September to January) regarding employee training data.

• Work regulation approval: Drafting and documenting the enterprise’s internal work regulation to ensure compliance with the system.

4. Interconnection with the Wage Protection System (Mudad Platform)

Salary management and compliance with the Wage Protection Program require continuous linkage and synchronization between the Qiwa and Mudad platforms. Outsourcing management to a specialized company ensures any discrepancies in employee wages or delays in file uploads are addressed, protecting you from immediate penalties and service suspension.

5. Setup Phase for New Enterprises

The Ministry grants certain new enterprises foundational privileges according to announced policies and controls on the Qiwa platform, which may vary by enterprise type and ministry updates. Errors during this phase (such as failing to correctly link Social Insurance or Saudization data) can consume visa balances or freeze the enterprise’s file at inception.

6. Reducing Administrative Costs for Small and Medium Enterprises (SMEs)

For SMEs, outsourcing platform management to a specialized firm is far more cost-effective than hiring a full-time HR officer or coordinator with a monthly salary, insurance, and benefits, while guaranteeing a higher level of expertise and real-time tracking of all government updates.

Guidance Tip: If the administrative side and compliance ecosystem are consuming time that would be better invested in developing your core business activity, or if you feel anxious about sudden fines due to failing to keep pace with ministerial decisions, this is the true indicator that you need a specialized management company.

Comprehensive HR and Government Relations Services from Entity Gate

At Entity Gate, our role goes beyond executing procedural transactions; we are your strategic partner in workforce management and government relations by offering an integrated service ecosystem, including:

• Employee Onboarding and Service Transfers: Tracking labor joining procedures and sponsorship transfers smoothly.

• Employment Contract Documentation and Management: Drafting and tracking contracts and addendums according to modern regulations.

• Issuing and Renewing Work Licenses and Residencies (Iqamas): Monitoring deadlines and settling obligations to ensure document validity.

• Profession Management and Modification: Reviewing and adjusting job titles according to specializations and accreditations.

• Exit/Re-entry and Final Exit Visas: Managing travel and departure requests systematically.

• Government Platform Coordination: Full synchronization across platforms (Qiwa, Mudad, Muqeem, GOSI, and Ajeer).

• Nitaqat and Saudization Tracking: Constant analysis of the enterprise’s Nitaqat bracket and proactive solutions to maintain it.

• Salary and Attendance Coordination: Ensuring compliance with the Wage Protection Program.

• Service Termination Procedures: Managing dues settlement and legally terminating contractual relationships.

• Employer of Record (EOR) Services: Providing workforce secondment options under Entity Gate’s sponsorship to meet flexible expansion needs.

The Value Provided by Entity Gate

• Proactive Verification: Studying enterprise and employee readiness before submitting any request.

• Comprehensive Coordination: Connecting requirements across all relevant government platforms.

• Awareness and Transparency: Informing the client of all requirements, costs, and potential risks in advance.

• Continuous Follow-up: Providing periodic reports and real-time updates on the status of each transaction until completion.

Frequently Asked Questions About Qiwa Platform and HR Services Management

Can an external company manage an enterprise’s account on the Qiwa platform?

Yes, the system allows granting delegated permissions to specialized institutions to manage operations and services on behalf of the business owner under specific controls and security frameworks.

Why is an employee’s service transfer request sometimes rejected?

Rejection may be due to several reasons, including: the enterprise failing to achieve the required Nitaqat bracket, expired documents, the employee failing to pass requirements or professional accreditations, or remarks related to wage protection.

Does transferring employees affect the enterprise’s Nitaqat bracket?

Yes, adding expatriate labor or losing national labor directly impacts the “Nitaqat” calculator; therefore, it is advisable to study the impact before submitting a transfer request.

What is the difference between Qiwa, Mudad, and Muqeem platforms?

• Qiwa: Focuses on contract documentation, work licenses, regulations, and service transfers.

• Mudad: Specializes in payroll management and Wage Protection Program compliance.

• Muqeem: Specializes in issuing and renewing residencies (Iqamas), passports, and travel visas.

When must an employee’s contract be documented on the Qiwa platform?

The contract must be documented immediately upon completing recruitment procedures and the employee commencing work to ensure compliance with the instructions of the Ministry of Human Resources and Social Development.

Does Entity Gate provide Employer of Record (EOR) services?

Yes, Entity Gate provides Employer of Record (EOR) services to help companies operate labor and expand their business scope without requiring immediate direct sponsorship transfer.

What documents are required to change an employee’s profession?

Requirements vary depending on the target profession and may include: certified academic qualifications, a professional registration certificate (such as from professional associations or boards), or a passing certificate for professional verification.

Get a Comprehensive Evaluation of Your Enterprise Now

Want to ensure your enterprise’s account compliance? Request an initial review of your enterprise’s status on the Qiwa platform and receive a report on pending transactions, risks, and priority requirements.

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