RIYADH: Labor Minister Adel Fakeih has issued a ministerial order making it mandatory for small and medium enterprise (SME) owners with nine or less expatriate workers in their businesses to employ at least one Saudi worker.
The Saudi employee should be registered under the General Organization for Social Insurance (GOSI) and cannot be counted as part of Saudization targets for another organization if he or she has another job, the Saudi Press Agency reported Friday.
The order said an SME owner could be considered an employee in his own establishment if he is working full time and not for anyone else.
If he is a part-time worker for another employer and is registered under the GOSI he must employ at least one more Saudi worker.
He would be considered a partner in the company provided he is not registered under GOSI and not employed elsewhere and not counted toward Saudization targets in any other organization.
The order also stipulated that if anyone does not comply with the order, the ministry would cease all services toward the organization except the renewal of work permits.
The ministry's order aims to support the competitiveness of new Saudi entrepreneurs in the SME sector, which is viewed as the backbone of the national economy.
© Arab News 2011
