Transfer of sponsorship is one of the most critical processes that both employers and employees navigate in Saudi Arabia’s dynamic business environment. At OST (Resources Promise to Operating & Maintenance) we have seen first hand what the intricacies of a sponsorship transfer can do to both the business and the workers.
Over the twenty years of our operation so far (which we started in 2008), we have been helping our clients navigate these complex processes, making sure that they are compliant and, at the same time, keeping their best interests in mind.
Labor laws in the Kingdom are still developing and sensing the depths of sponsorship transfer has recently become necessary in order to keep the competitive advantage in the current market. It has become our quest to demystify all these processes and offer pro advice to our clients as they should be offered.
What Is Sponsorship Transfer in Saudi Arabia?
Sponsorship transfer Within the Saudi kafala system, the transfer of the work visa and residence permit (Iqama) is considered the legal mechanism available to an employee in transferring sponsorship, that is, changing the employer. The process is central to the Kingdom labor mobility system and it must be observed keenly as per stipulated rules.
At OST we make our clients understand that this is not just a case of paper transfer. Individuals of many stakeholders are involved in the process, among them being the Ministry of Human Resources and Social Development, General Directorate of Passports and in certain cases, the courts. The cases have their own distinctive difficulties that need professional knowledge and practice.
As we have seen, most employers as well as employees do not appreciate the depth that it comes with. This is one of the reasons why our team devotes considerable time to informing all the parties on their rights and responsibilities as well as the possible consequences of the chosen decisions during the process.
Key Rules and Regulations Governing Sponsorship Transfer
The Saudi government has put up the controlling laws which regulate how and in what situations transfer of sponsorship should take place. The aim of these rules is to safeguard workers investments by their employers as well as employee rights to move in their professions.
As per existing rules, the transfer procedure usually involves an agreement of the existing sponsor, but such rules can be bypassed in certain situations. The Ministry of Human Resources and Social Development has laid clear standards to be achieved such as stipulated minimum periods of contract and the one that requires observance of the rules of labor law.
At OST, we keep track of these developing policies since we know that a lack of compliance could lead to serious consequences to the employer and difficulties on the part of the employees. Our legal team keeps up to date on any changes and update to our guidance regularly so it has the latest changes in policy and procedures.
Who Is Eligible for a Transfer of Sponsorship?
Transfer of sponsorship can only be considered based on several aspects that we consider individually to each client. The employees should normally have had certain amount of time with their current sponsor, which generally is one year, but again this may depend on contract terms and other desirable conditions.
Skilled workers, professional visa holders and others in selected exemptions may be eligible to other requirements. We have discovered that each of the cases should be evaluated separately pay attention to the fact to the kind of profession the worker has, the duration of the contract, the agreement of the employer, and prior legal conflicts.
A careful eligibility evaluation is carried out by our team since failure in this aspect could mean rejection and possible subsequent legal issues with the authorities. We do not want to over-promise and underdeliver; hence, our first belief is to keep only real expectations.
Step-by-Step Process to Transfer Sponsorship Legally
The transfer procedure starts with the acquisition of the needed approval and paperwork. We walk with our clients at every step until the application is finally submitted and successful via the platform of the Ministry of Human Resources and social development.
To begin with, we nail down all the prerequisites such as fulfilment of contract procedures and settlement of outstanding obligations. Then we create and file the transfer request with all supporting documents. The organization will require the involvement of various states organs with various specifications and time frames.
During this course, we continuously provide communication with all the parties. Our experience has proven to us that wise administration and effective communication will help to avoid delays and other complications that might end up ruining the process.
Required Documents for Sponsorship Transfer in KSA
When looking at documentation requirements of a sponsorship transfer, they are quite detailed and it is necessary to prepare them actively. We keep comprehensive checklists in regard to our clients and they are never left out in the application process.
The list of necessary documents normally consists of Iqama of the employee, copies of his passport, a current employment contract, salary certificates, and the letters of clearance of the corresponding authorities. Other documents that might be needed depending on the circumstances will include court judgments or medical reports.
We have years of experience in the way our document preparation service has been developed. We have found out that poorly or improperly completed documentation is among the main causes of application delays and rejections. It is due to this that we spend a lot of time in verification and quality control prior to submission.
Common Reasons for Transferring Sponsorship
Over the years we have seen all types of motivations for transferring sponsorship. The most common reasons for employees were better career development opportunities, improved compensation packages, and improved working environments or conditions.
From the employer’s perspective, restructuring their business, project completions, and making strategic workforce decisions were the reasons for transferring sponsorship. In situations where it is agreed upon between the employer and employee transferring sponsorship can sometimes be the best option for all parties.
By understanding motivations, enables us to tailor our approach to each case. We treat each transfer or sponsorship request as a real person and business with an actual need, concern, and motivation that we need to respect and consider.
How OST Simplifies Sponsorship Transfer for Employers and Workers
In OST we have streamlined the systems in such a way that they cut out technicality and strains on the sides of transferring the sponsorship. We have a complete coverage in our service in that we take you through to consulting, finalization and documentation.
Each transfer will get its own set of case managers so that there is a person to handle the transfer in a personalized manner and that communication is maintained regularly. Comprehensive knowledge of governmental processes and connections to different authorities enable us to overcome difficulties without excessive spending of time and money.
The level of successful experiences demonstrates our care about details and desire to do the best. In our opinion, effective sponsorship transfers cannot be done through deskwork only, but extend to concrete knowledge of the needs of our clients and the regulatory environment they have to execute the transfers.
Transfer Without Employer’s Approval: When Is It Possible?
There are situations in which there is possible transfer of sponsorship without explicit authorization of the current employer. These exceptions are narrowly construed by the labor law and normally entail incidences when the employer has breached the contract or labor laws.
Unless resolved through an arbitrable agreement, no-pay salary, hazardous working conditions, or contract breach could be a basis eligible to the processing of the exceptions. Nonetheless, such situations mean a considerable documentation and legal scrutiny to be conducted properly.
Sensitive cases are handled very carefully and with maximum attention given to the fact that such cases are normally characterized by controversial facts and charged emotional situations. Our law office is strained to take care of the interests of our clients but not in a position to overlook the law and regulations.
Legal Implications of Sponsorship Transfer Violations
Breach of the rules of transfer of sponsorship may result into severe effects to employers and the workers. The punishment can be in form of fines, cancellation of visas, bans to entering the country, and legal charges in case of serious penalties.
We reinforce to our clients that it is never worth the risks to shank around and try to take shortcuts to avoid following procedures. Labor law violations are also a serious consideration to the Saudi government and it has been enforced with great vigor in the recent years.
Preventive mode of action is based on education and compliance instead of curing the damage after the issues are created. We are sure that the initial knowledge of correct procedures and adherence to these procedures is more economically viable and less phobic than rectification of violation at a later stage.
Expert Support from OST in Navigating the Sponsorship System
Our experience in Saudi sponsorship system has been grown year after year when the practice of it remained constantly. We know that each case is different and requires personal consideration and solutions regarding the clients.
Through effective relationships with the government authorities, we take pride in being up to date with the changes in regulations. A combination of knowledge and networks empowers us to deliver outstanding services to clients since we deal with different industries and sectors.
We are not committed to simply a transaction being completed. Every client relationship is seen as a long-term partnership with trust and transparency based on mutual success. Since 2008 we have had this philosophy to guide our operations and it will continue to guide us towards growth and development.
