Saudi Arabia’s Ministry of Commerce has instructed both government and private entities to avoid using the term ‘sponsor’ and replace it with ’employer’ in all official documents.
According to Article 2 of the Labour Law, the term ’employer’ refers to “any natural or legal person who employs one or more workers in return for a wage,” the ministry explained.
This ban comes after a letter sent by the Ministry to the Federation of Saudi Chambers (FSC), Gulf News reported.
Consequently, the FSC issued a circular to chambers of commerce and industry across the Kingdom.
Crucially, the circular indicated that the definition of “worker” involves any individual, male or female, who works for the benefit of the employer under their management or supervision in exchange for a wage.
Apart from these efforts, the Ministry of Human Resources and Social Development had previously launched the Contractual Relationship Improvement Initiative in 2021.
Interestingly, the initiative seeks to protect and boost labour rights by offering services such as job mobility, exit and reentry permissions, and freedom of final exit.
Fortunately, the initiative has paid off as the ministry reported a 50% decline in labour disputes since the launch of the initiative. Furthermore, one million workers benefited from its services.
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