Sponsor’ Term Banned in Saudi Arabia, ‘Employer’ Adopted for Legal Use
Dubai: The Ministry of Commerce in Saudi Arabia has advised government and private companies to avoid using the word ‘sponsor’ and instead use ‘employer’ in all official documents.
The ministry stressed that according to Article 2 of the Labor Law, the term ‘employer’ refers to “any natural or legal person who employs one or more workers in exchange for wages.”
The directive was conveyed through a letter sent by the ministry to the Federation of Saudi Chambers, which subsequently issued a circular to chambers of commerce and industry across the kingdom.
The circular clarified that the definition of ‘worker’ includes any individual, male or female, who works for the benefit of the employer under their management or supervision in exchange for wages.
In line with these efforts, the Ministry of Human Resources and Social Development launched an initiative in 2021 to improve contractual relations. The initiative aims to improve workers’ rights by providing services such as job mobility, exit and re-entry permits, and final exit freedom. .
The ministry said that since the initiative was launched, there has been a 50 percent reduction in labor disputes, with one million workers benefiting from its services.