MHRSD revealed that several professions in Madinah will be localized from June onwards

The Ministry of Human Resources and Social Development (MHRSD) has revealed that several professions in Madinah will be localized with a percentage ranging from 40% to 100% starting from next Dhu Al-Hijjah, corresponding to June. This came during MHRSD issuance of the procedural guide of the decision to localize a number of professions and economic activities in Madinah region, which aims in increasing the Saudis participation in the labor market in the region. The 40% target will be applied to the workers in restaurants with service, banquet kitchens, fast food stores, juice shops in stand-alone or mixed-use buildings, complexes and closed commercial centers, except the exceptional professions. MHRSD said the percentage would be applied in case there were 4 workers or more in one shift inside the place.

The localized activities with 50% will include the workers who serve drinks in cafes, ice cream stores in stand-alone or mixed-use buildings, complexes and closed commercial centers, except the excluded professions. This percentage will be applied in case there are 2 workers or more in one shift inside the place. Localizing by 50% will also be applied on workers in the wholesale activity of food and beverages, except the excluded professions such as cleaning worker and freight and unloading worker. The percentage of workers must not exceed 20% in the sales outlet per shift.

In case there were less than 3 workers in one shift, then one more worker must be added in one of the excluded professions, while adhering to the uniform. The activities excluded from the localization in the restaurants and cafes fields are: Cafeterias; catering contractors; caterers; canteens and cafeterias in factories, offices, hospitals, schools, restaurants and cafes inside hotels, apartments and hotel villas.

MHRSD said the localization percentage in the professions of marketing specialist and sales representative is 40%. While localization percentage of the accounting fund employee will be 100%, except the excluded activities such as car maintenance; fuel filling; cylinder gas; all kinds of workshops; restaurants; cafes; in addition to the nurseries with the exception of sales outlets whose area is less than 300 square meters.

MHRSD’s guide confirmed that the decision would be applied in all the private sector establishments operating in Madinah region, according to the professions and activities codes specified for them. The Ministry noted that if professions or activities were targeted in previous or subsequent decisions at different percentages, the higher localization rate would be applied. The guide specified several matters must be taken into account when applying the decision on the localized activities and professions, of whom are: It is important for the decision not to conflict with the localizing percentages in the other decisions which will be applied on the total number of workers in the establishment according to Nitaqat program.

MHRSD has granted a 180-day correction period in the activities and professions targeted to be localized, starting from the date of 6/7/1444 AH, and the localization percentage will be applied on 12/20/1444 AH.

It has also indicated that the penalties stipulated in the guide, in addition to the statutory penalties, will be applied after the expiration of the correction period to all establishments that do not comply with the localization percentage.

MHRSD’s guide stressed the importance of complying with the uniform for the men and women workers of excluded professions. Worker profession must be written and placed back of the uniform. Ministerial Resolution No. 164091 dated 11/14/1441 AH related to organizing of workers' uniforms must also be observed.

In order to count the Saudis in the localization percentage, it is required that they be registered in the insurance for the establishment' account, or that they be in a documented flexible work contract, or hold a self-employment document.