Iqama Sponsorship Transfer Request Template (Qiwa Platform)

Sponsorship transfer in Saudi Arabia is not just a piece of paper passed between one employer and another. It is a complete legal and financial procedure that touches the worker’s salary, GOSI contributions, medical insurance, and Iqama validity. Every small mistake in the request means weeks of delay, and sometimes fines on the new employer or even deportation of the worker.

Since the launch of the Labor Reform Initiative in 2021, workers in many cases can transfer their services without needing the consent of the current employer, provided specific conditions on the contract, wage, and tenure are met. This shift reshaped the labor market and opened the door for many establishments to attract ready talent instead of waiting a year or more to bring in new workers through Musaned.

This template was designed to be your practical reference before you open the Qiwa platform and start the procedure: the document checklist, submission steps, fees, post-transfer obligations, and the integration with your new employee’s payroll on Qoyod. Read it once, keep it in your HR file, and use it as a checklist before every new transfer.

What Sponsorship Transfer Means Under the Latest Saudi Labor Law Updates

Sponsorship transfer, officially known today as “Service Transfer”, is a legal procedure that moves the contractual employment relationship from one employer (the current establishment) to another employer (the new establishment) inside the Kingdom, along with full responsibility for the worker: salary, GOSI contributions, medical insurance, Iqama, and any subsequent entitlements. The worker does not leave the Kingdom, does not need a new visa, and does not start from scratch.

Before 2021, transfer required the current employer’s approval in almost all cases, which created an unbalanced labor market. With the launch of the Labor Reform Initiative on March 14, 2021, workers became able to transfer their services without the employer’s consent in specific cases, through the Qiwa platform run by the Ministry of Human Resources and Social Development (MHRSD).

The most recent updates focused on speeding up the procedure: shortening processing times, linking Qiwa directly with Absher, Mudad, and GOSI, and obliging the employer to respond to a transfer request within a fixed period, otherwise the request is considered automatically approved.

The Governing Legal Framework

Transfer is governed by three references: the Saudi Labor Law and its executive regulations, Ministerial Decision No. 51848 of 1442H regarding the Labor Reform Initiative, and the operational regulations of the Qiwa platform. Every transfer request is recorded electronically, and an official decision is issued and kept in both the worker’s and the establishment’s records.

Who Benefits From This Procedure

• The expatriate worker: gains a better job opportunity without leaving the Kingdom or losing prior service tenure for end-of-service gratuity purposes with the new employer, if agreed contractually.
• The new employer: hires a ready, market-trained talent and saves a recruitment cost ranging between 6,000 and 15,000 SAR per worker.
• The current employer: releases obligations toward a worker who is no longer productive or wishes to leave, with a proper settlement of dues.

The Difference Between Service Transfer and Sponsorship Transfer

Many business owners use the two terms interchangeably, but there is a substantial difference in procedure and legal effects, and understanding it protects you from a delayed or rejected request.

Service Transfer

This is the modern procedure adopted since 2021. It is submitted by the worker or the new employer through Qiwa, and it does not always require the current employer’s consent if the conditions of the Labor Reform Initiative are met. Processing time is short (typically two to seven days), and the fees are nominal.

Sponsorship Transfer in the Traditional Sense

This used to go through labor offices and later through Absher, and it required explicit consent from the current employer and from the Ministry of Interior (Passports). Today it is no longer a standalone path in most cases, replaced by the Service Transfer route on Qiwa. The popular term “Sponsorship Transfer” is still widely used, but the actual procedure is Service Transfer.

Throughout the rest of this template, whenever we say “Sponsorship Transfer”, we practically mean “Service Transfer via Qiwa”, because that is the only path available today.

When a Worker Can Transfer Sponsorship Without Employer Consent

Article 7 of Decision No. 51848 of 1442H precisely defined the cases in which a worker is entitled to transfer services without referring back to the current employer. Understanding these conditions is critical because they are a double-edged sword: they enable the worker to move freely, while showing the new employer when a transfer is legally safe and when it may face an objection.

The Five Cases Permitting Transfer Without Consent

• One year has passed since the worker entered the Kingdom: if the worker has completed one full year since first entering for work at the establishment, transfer is allowed provided the remaining conditions are met.
• Contract not documented on Qiwa: if the current employer did not electronically document the worker’s contract within 90 days of starting work, the right to object to the transfer is forfeited.
• Delayed salary payment: if the worker’s salary has been delayed for three months or more (consecutive or scattered) within a six-month period, the worker can transfer immediately without the one-year tenure.
• Employer absent from the Wage Protection System: if the establishment is not registered in the Wage Protection System (Mudad) despite being required to register, the worker has the right to transfer.
• A false absconding report filed by the employer that is later invalidated: if the employer files a malicious absconding report and it is proven invalid, the worker is transferred automatically by a ministerial decision.

Additional Conditions That Must Be Met

Even if one of the above cases applies, the worker must be: registered in active labor status, not subject to a deportation order, with a valid Iqama, and not having exhausted the permitted number of transfers (no formal upper limit exists, but repeated transfers within a short period may trigger review).

Automatic Transfer Without Conditions in Three Exceptional Cases

There are cases in which a worker may transfer services without any time condition and even without consent, namely: expiry of the Iqama without renewal for more than 15 days due to the employer’s fault, a final ruling against the employer in a labor case in favor of the worker, and the closure of the establishment or suspension of its services.

When an Employer Can Reject a Transfer

The current employer is not without options. The system also grants tools to object to transfer requests in specific cases, especially if the worker is still within the first year and none of the Labor Reform Initiative cases applies.

Accepted Reasons for Objection

• The first year has not been completed: if a full year has not passed since the worker joined the establishment and no exceptional case applies, the employer has the right to reject the transfer.
• Outstanding financial obligations of the worker toward the establishment: such as an unpaid advance or recruitment costs documented in the contract, provided they are recorded in the electronic contract on Qiwa.
• An ongoing labor case: if there is a dispute pending before the labor court, the transfer is frozen until the case is decided.
• An unexpired fixed-term contract: in fixed-term contracts, both parties must abide by the contract until its end, unless they mutually agree to terminate it.

The Response Window for a Transfer Request

When a transfer request that requires the current employer’s consent is submitted, the employer is granted a fixed window (typically 14 days) to respond through Qiwa. If no response is received within that window, the request is considered automatically approved. This is a critical rule for employers: monitor your Qiwa inbox daily.

What Does Not Count as a Valid Rejection

A rejection based on the employer’s mood, a wish to punish the worker, or an attempt at financial extortion are all reasons rejected by the system. If the worker proves the rejection was malicious, the file is referred to labor inspection, and the establishment may face penalties including suspension of its services on Qiwa.

Documents Required From the Worker and the New Employer

Preparing the documents before opening the Qiwa portal saves hours. Here is a reference table to keep in front of you before starting.

Optional Documents That Strengthen the Request

• A letter from the current employer: if available, it speeds up the procedure even in cases where consent is not required.
• Salary statement from the worker’s bank: useful if one of the reasons for transfer is delayed salaries.
• An experience certificate from the current employer: not mandatory, but it makes calculating end-of-service gratuity under the new contract easier later.

Steps to Submit the Electronic Request Through the Qiwa Platform

The entire procedure is electronic and does not require visiting a labor office. Here is the actual sequence, with the party responsible for each step and the expected duration.

Practical Tips During Submission

• Review the data before sending: Iqama number, date of birth, full four-part name in Arabic and English. A single-character error returns the request.
• Confirm medical insurance is activated before submission: not weeks earlier, but on the same day, to avoid any coverage gap.
• Keep the request number: it is used later for inquiries and to link the worker’s file to GOSI records.

Fees and Timelines for the Transfer Procedure

Fees escalate with the number of times a worker has been moved between establishments, on the philosophy that the worker should settle in a job rather than move frequently.

Fees are paid by the new employer through a SADAD invoice that appears in the Qiwa account immediately after the request is submitted. They may not be charged to the worker or deducted from the salary, and any attempt to do so is an explicit labor violation.

Actual Processing Times

In cases that do not require the current employer’s consent (Labor Reform Initiative), processing takes 2 to 5 working days. In cases requiring consent, the period extends to two or three weeks depending on how quickly the current employer responds.

When the New Salary Starts

The new salary starts from the date the transfer decision is officially issued on Qiwa, not from the date the request was submitted. Any working day prior to the decision remains the responsibility of the previous employer.

Worker Rights During the Transfer Period

This is a point often misunderstood. The transfer does not waive prior entitlements, nor does it freeze the worker’s relationship with the current employer until the decision is issued.

End-of-Service Gratuity

When the transfer decision is issued, the worker’s relationship with the previous employer officially ends, and end-of-service gratuity is calculated for the actual period of service with that employer, under Article 84 of the Saudi Labor Law: half a month for each of the first five years, and a full month for every year after that. Both parties agree on the payment method (one-time or in installments) and document it in a final settlement.

Salary and Leave

• Current salary: remains due from the previous employer until the transfer date, paid through the standard payroll cycle via Mudad.
• Annual leave balance: settled in cash within the final settlement if the worker has not used it.
• Return ticket: not due upon transfer (since the worker does not leave the Kingdom) and is forfeited with the move.
• Outstanding wage dues: if any, must be settled before a “no objection” certificate is issued through Qiwa.

Medical Insurance During the Transition Period

The old medical insurance remains valid until the transfer date, and the new one is activated from the date of the decision. Any coverage gap is the new employer’s responsibility, so it is best to activate the new insurance one or two days before submission.

Obligations of the New Employer

Once the transfer decision is issued, all legal responsibilities move to the new establishment immediately. Delay in any of these obligations exposes the establishment to fines and a suspension of services on Qiwa.

GOSI Contributions

The worker must be registered with GOSI within 30 days of the transfer decision, with a monthly contribution equal to 21.5% of the basic salary for Saudis (9% deducted from the worker and 12.5% paid by the employer, plus an additional 2% for the unemployment insurance program “SANED”), and 2% for occupational hazards insurance for non-Saudis. Incorrect contribution calculations mean retroactive adjustments and reconciliations.

Medical Insurance

Under the Cooperative Health Insurance Law, medical insurance must be activated before or on the transfer start date. Gaps of even one day are recorded as a violation on the establishment with the Council of Cooperative Health Insurance.

Iqama Renewal and Wage Protection

• Iqama renewal: responsibility for renewing the worker’s Iqama and paying its fees (650 SAR per year) transfers to the new employer from the date of transfer.
• Wage Protection System (Mudad): the worker’s salary must be uploaded within the establishment’s file in Mudad from the first payroll cycle after the transfer, otherwise delays are logged against the record.
• Contract documentation: the contract signed through Qiwa is considered the official contract. Any side paper agreement without electronic documentation has no legal value.

Transferring Sponsorship Into a Different Business Activity

A recurring question: is a worker allowed to move from a retail establishment to a contracting one? The short answer is: yes, the system does not restrict transfer by activity, but there are details worth noting.

The Profession Registered on the Iqama

Upon transfer, the worker’s profession recorded on the Iqama is carried over as-is initially, after which the new employer may file a “profession amendment” request through Absher if the actual job differs. Profession amendment carries its own fee (around 1,000 SAR) and requires Passports approval.

Restrictions on Certain Professions

Some professions cannot be transferred outside their own activity, such as medical professions (doctor, pharmacist, nurse) which require classification by the Saudi Commission for Health Specialties, and engineering professions classified by the Saudi Council of Engineers. Transfers in these cases require the professional authority’s licensing first.

Impact of Transfer on the Saudization Rate

Every transfer of an expatriate into a new establishment affects its Nitaqat status. Log into Qiwa and review your Nitaqat position before transferring a large number of expatriates, so you do not drop into a lower band that affects your ability to recruit later.

The Most Common Mistakes in Sponsorship Transfer Requests

From the thousands of requests rejected monthly on Qiwa, here are the most repeated mistakes, most of which can be avoided with a simple checklist.

• Submitting the request before signing the contract electronically: the Qiwa system does not accept a transfer request without a signed new contract. Start by creating and signing the contract.
• Failing to activate medical insurance before submission: one of the top rejection reasons. Activate the insurance policy before clicking “submit”.
• Setting a salary below the Saudization minimum in the contract: contracts in which a Saudi’s salary is less than 4,000 SAR may not count toward Nitaqat, creating a later issue.
• Forgetting to update the establishment’s data on Qiwa: if the address, contact number, or activity on the Commercial Registration is outdated, the request is rejected or delayed.
• Submitting while the establishment’s services are suspended: violations with Zakat, Customs, the municipality, or GOSI may suspend the establishment’s services on Qiwa. Settle them before submitting.
• Relying on the worker’s current profession without reviewing it: if the profession recorded on the Iqama does not match the new job, plan to amend the profession right after the transfer.
• Missing the fee payment window: a SADAD invoice has an expiry date, after which the request must be resubmitted.
• Failing to check the “labor clearance” list: if the worker has an absconding report or an unresolved final exit, the transfer is rejected.

How Qoyod Manages Payroll and GOSI Dues for New Employees

After the transfer decision is issued and the worker is officially registered with you, the real phase begins: every month brings a salary, a GOSI contribution, Wage Protection (Mudad), taxes, and deductions. This is where Qoyod’s payroll system steps in as a daily tool that saves hours.

Creating the New Employee’s File

You add the employee with their full data: name, Iqama number, profession, start date (date of the transfer decision), basic salary, allowances, and fixed deductions. The system links this data to an automatic monthly accounting entry, so you do not need to create a manual entry every payroll cycle.

Automatic GOSI Contribution Calculation

• Distinction between Saudi and non-Saudi: Qoyod calculates 21.5% for Saudis and 2% for expatriates without manual intervention.
• Contribution cap: applies the salary cap subject to contribution (currently 45,000 SAR) and does not calculate on anything above it.
• Employee and employer shares: separated in the accounting entry, making monthly reconciliation with the GOSI invoice straightforward.

Wage Protection (Mudad) Integration

Qoyod exports a SIF file in the format approved by Saudi banks and Mudad, which you can upload directly into your bank’s portal. This ensures every salary you pay is automatically recorded in the Wage Protection System, protecting you from delays that show up as a negative indicator on your establishment.

The Reports HR and Accounting Need

Monthly payroll statement, GOSI contributions report, end-of-service gratuity report for each employee based on tenure, accrued leave report, deductions report: all of these reports are ready in Qoyod without you building an Excel file from scratch. At the end of the fiscal year, your data is organized for the Zakat declaration with ZATCA without surprises.

All of this is included in the same subscription, with no extra fees per employee. You can review plans by team size on the pricing page.

Frequently Asked Questions

Can I transfer an expatriate worker who entered the Kingdom only two weeks ago?

No, unless an exceptional reason under the Labor Reform Initiative applies (such as the contract not being documented, or the establishment not being registered in Wage Protection). Under normal circumstances, a full year must pass since entry before transfer without the current employer’s consent.

Does the worker need to leave the Kingdom during the transfer?

No, service transfer through Qiwa does not require any exit. The worker stays inside the Kingdom, and the Iqama is updated automatically on Absher within 24 to 48 hours of the transfer decision.

What happens if the worker wants to transfer after an absconding report has been filed against them?

First, the absconding report must be lifted by reviewing the procedure on Qiwa or through the labor court if the report is malicious. After the report is lifted and the worker’s position is proven, transfer becomes permissible, and in some cases it happens automatically by ministerial decision.

Can an employer charge the worker for recruitment costs during a transfer?

No, unless those costs are documented in the original electronic contract on Qiwa from the start of employment. Side paper agreements or undocumented clauses do not bind the worker legally and do not count as a valid reason to reject the transfer.

How long does sponsorship transfer take under normal conditions?

If the current employer’s consent is not needed, the procedure takes 2 to 5 working days. If consent is required, it extends to two or three weeks, depending on how quickly the current employer responds within the 14-day window granted to them.

Can a worker be moved between branches of the same establishment?

Moving between branches under the same Commercial Registration does not require a service transfer. It is an internal move recorded within the establishment’s HR. If the branches operate under different Commercial Registrations, however, the move is subject to the same Service Transfer procedure on Qiwa.

Is the worker’s tenure with the previous employer preserved after the transfer?

Legally, the prior employment relationship ends with the transfer decision, and end-of-service gratuity is settled for that period. If the worker and the new employer agree to count prior tenure for internal purposes (such as leave or incentives), this agreement is documented in the new contract. However, the new employer cannot be forced to bear gratuity for a period during which the worker was not employed by them.

How do I check my Nitaqat status before accepting an expatriate transfer?

Log into the Qiwa portal then the Nitaqat module, and you will find a dashboard showing your establishment’s status (Platinum, High Green, Medium Green, Low Green, Red). Adding a new expatriate may lower your Saudization rate, especially if you are close to the lower band limit. Plan to hire Saudi employees later to offset the impact.