Ministry of Commerce instructs to refrain from using the term 'sponsor' and instead use the term 'employer'
02 Jan 2025
News
The Ministry of Commerce has advised all government and corporate institutions to refrain from using the term 'sponsor' and instead use the term 'employer'. According to Article 2 of the Labor Law, an employer is "any natural or legal person who employs one or more workers in return for a wage."
The government issued the directive in a letter to the Federation of Saudi Chambers. In turn, the federation conveyed the ministry's directive via a circular issued to chambers of trade and industry throughout the Kingdom.
The circular defined a 'worker' as any natural person, male or female, who works for the advantage of the employer and is managed or supervised by him in exchange for a wage.