RIYADH, March 23: The work contract of expatriate male employees above the age of 60 will not be renewed further in Saudi Arabia under the new labour laws to be implemented from April 13.

The age limit for women for automatic cancellation of the employment contract has been specified as 55.

In case the employment contracts are not renewed at the above ages, the residence permit (iqama) of an expatriate employee would also have to be cancelled simultaneously, making it incumbent upon him and his family to leave the country. This law could adversely affect the fortunes of a large number of Pakistani and Indian expatriates, who have been living in the Kingdom for decades.

According to the new laws, the rate of Saudisation of jobs in private companies will be raised to 75 per cent with the implementation of the new law, the English daily Arab News said.

Saudi government officials have been giving contradictory signals on the issue. Earlier, the Saudi labour minister at a point in time had clarified that the new law banned offering employments to any one above the prescribed ages. At that time, he had emphasised that no new visas would be issued to people beyond the stipulated age.

However, he was of the opinion that it was not mandatory that all male employees above the age of 60 will have to pack and go back.

But the law itself appears clear on the age limit. To what extent it would be implemented is another issue and would only be evident once the new regulations become effective from April 13.