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Transfer of services

In one sentenceA non-Saudi employee moving electronically from one employer to another inside the Kingdom, popularly known as transferring sponsorship.

Simply put

When a non-Saudi employee wants to work for another business, his services are transferred through the Qiwa platform under the conditions the competent authority sets, with or without the current employer's approval in specific cases.

For the accountant at the old business: the end of the relationship means settling the employee's entitlements (benefit and leave) in a final settlement. For the new business: there are fees and procedures that are part of the hiring cost. Check the Saudi Labor Law and its regulations for the details.

Example

A maintenance technician's services were transferred from a workshop to a factory. The workshop issued his final settlement with his benefit and leave pay, and the factory recorded the transfer fees as part of the cost of hiring him.

Don't confuse it with

Business assignmentA transfer of services is a permanent move to another employer, while a business assignment is a temporary task within the same business.