The Labor Reform Initiative (LRI) launched in March 2021 is one of Saudi Arabia's most significant labor market reforms. It allows expatriate workers who have completed their minimum contract term to: transfer sponsorship to a new employer without the current employer's consent, obtain exit visas without employer approval and benefit from a final exit mechanism after contract completion. The LRI represents a fundamental shift in the Kafala system and gives expatriate workers significantly greater labor market mobility. Employers must adapt their retention and HR practices to account for this increased worker freedom. Inclusive Solutions advises clients on LRI implications.