Okaz/Saudi Gazette

RIYADH — The Ministry of Commerce has instructed all government and private entities that they should not use the term 'sponsor' and should be satisfied with the term 'employer'. The ministry emphasized that Article 2 of the Labor Law defines employer as "any natural or legal person who employs one or more workers in return for a wage."

The ministry's directive came in a letter sent by it to the Federation of Saudi Chambers. In turn, the federation has conveyed the ministry's directive through a circular sent to chambers of commerce and industry in various regions of the Kingdom.

It was stated in the circular that the definition of 'worker' is any natural person, male or female, who works for the benefit of the employer and under his management or supervision in return for a wage.

In 2021, the Ministry of Human Resources and Social Development launched the Contractual Relationship Improvement Initiative, which included providing several services, most notably freedom of job mobility, freedom of exit and reentry and freedom of final exit. There has been 50 percent decrease in the rate of labor disputes after the launch of the initiative. The ministry announced that one million workers have benefited from the Contractual Relationship Improvement Initiative.