Today (Tuesday), the Ministry of Human Resources and Social Development issued the procedural guide for the decision to localize a number of economic activities and professions in the Medina region, which aims to raise the participation of male and female citizens in the labor market in the Medina region.
The localization rates for professions in Medina will range from 40% to 100%. Below are the full details of the procedural guide for the decision to localize professions and activities in Medina:
endemic activities by 40%
Localization will be applied at a rate of 40% to workers in restaurants with service, banquet kitchens, fast food stores, juice shops in independent or mixed buildings, closed complexes and commercial centers, with the exception of the excluded professions, and the percentage will be applied if there are 4 workers or more in one shift inside the outlet .
localized activities by 50%
This includes workers serving drinks in cafes, ice cream shops, and ice cream in stand-alone or mixed buildings, complexes, and closed commercial centers, with the exception of the excluded professions, and the percentage will be applied if there are two workers or more in one shift inside the outlet.
Localization will also be applied at a rate of 50% to workers in the wholesale activity of food and beverages, with the exception of the excluded professions, such as cleaners and freight and unloading workers, provided that their percentage does not exceed 20% of the workers in the sales outlet in one shift, and in the event that the number of workers in one shift is less than 3 Only one worker is added in one of the excluded professions, while adhering to the uniform.
Activities excluded from the settlement of the activities of restaurants and cafes
This includes cafeterias, food processing and preparation or catering contractors, caterers, canteens and cafeterias in factories, offices, hospitals and schools, restaurants and cafes inside hotels, apartments and hotel villas.
Native professions and their percentage
Marketing specialist and sales representative: Emiratisation rate is 40%
Accounting fund employee: The Emiratisation rate is 100%, except for the excluded activities, which include car maintenance, fuel filling, cylinder gas, restaurants, cafes, workshops of all kinds, and nurseries, with the exception of sales outlets whose area is less than 300 square meters.
The guide confirmed that this decision applies to all private sector establishments operating in the Al-Madinah Al-Munawwarah region according to the professions and activities codes specified for them.
Things to consider when calculating localization rates
The procedural guide specified several matters that must be taken into account when applying the decision to the activities and professions that are nationalized, including that the decision should not conflict with the percentages of localization in other decisions that apply to the total number of workers in the establishment according to the Nitaqat program.
Also, when calculating the number of Saudi workers out of the total workers in the outlet, rounding to units should be made from 0.49 or less, which is close to zero, and from 0.5 and above, it is rounded to 1. The number of Saudi workers should be calculated after subtracting workers in the excluded professions.
The guide explained the equation for calculating the number of Saudi workers, which will be calculated by subtracting the number of workers in the outlet from the number of workers in the excluded professions by multiplying the imposed Saudization percentage, and this is applied to each outlet in the targeted activities.
debug timeout
The correction period means the period between the date of issuance of the ministerial decision and the start of applying the ratios. During this period, the establishment can work on what enables it to achieve the localization ratios to reach its target. The penalties stipulated in this guide and the statutory penalties will be applied after the expiry of the correction period to all establishments that do not comply with the Emiratisation percentage.
The Ministry granted a 180-day correction period in the activities and professions targeted for Emiratisation, starting from the date of 6/7/1444 AH, and the Emiratisation rates will be applied on 12/20/1444 AH.
The uniform for the exempted professions
The procedural guide emphasized adherence to a uniform uniform for workers in the excluded professions, including both male and female workers, provided that the worker’s profession is written behind the uniform, with emphasis on observing Ministerial Resolution No. 164091 dated 11/14/1441 AH related to the regulation of workers’ uniforms.
Mechanism for implementing penalties and legal procedures
In the event that the facility does not comply with the required Emiratisation percentage, the Ministry will take all necessary measures to ensure that the facilities comply with the implementation of this decision, and penalties will be applied against establishments that violate the provisions of this decision according to the schedule of violations and penalties issued by Ministerial Resolution No. (92768) dated 5/5/ 1443 AH, taking into account any amendments to this decision, and the Ministry will take all other necessary measures to ensure the implementation of the ministerial decision.
Support, employment and financing programmes
The procedural guide indicated that providing and implementing support and employment programs is through the Human Resources Development Fund “Goal”, and the Social Development Bank provides support for young men and women who have a desire and ambition to practice self-employment and pave the way to success towards self-independence, while the bank provides a number of programs financing that will support the entry of young people into commercial activities, explaining these programs on The bank’s website.
Other clarifications for implementing the decision
The procedural guide confirmed that the Emiratisation decision is applied to workers inside the establishment, as well as the penalties stipulated by law, regardless of the scope of the establishment in Nitaqat, meaning that the scope of the establishment in Nitaqat does not affect the calculation of the Emiratisation percentage, and the decision is also applied to the name of the national classification of economic activities and the actual activity of the establishments .
The guide stressed that it is required for a Saudi to be counted in the Emiratisation ratios that he be registered in the insurance for the account of the establishment or that he be with a documented flexible work contract or hold a self-employment document.
He pointed out that the Saudi workers who are required to be present at the port and who have a contractual relationship with the employer to perform work mainly for a wage, their contracts can be in any type of work (full – part – flexible “hourly work”) according to the specified conditions, and it is also required that the Saudi be He works in the sales outlet according to the percentages specified in the decision, regardless of the form of the contract.
The guide also emphasized that it is possible for the worker to be present at the port with a flexible work contract “work by the hour”, provided that the employee present in the port with a valid flexible work contract is calculated by one worker, provided that the contract is concluded and documented through the flexible work platform.