CIRCULAR

Dear Sir/Madam,

Peace, mercy, and blessings of God be upon you,

Subject: Ensuring compliance with the requirements for remote work in customer service occupations.

In continuation of the Central Bank's instructions communicated via Circular No. (42.32166) dated 14/05/1442 AH, which emphasize registering remote workers in customer service occupations in the financial institution's official records, and the General Organization for Social Insurance records, as well as documenting these workers' contracts on the designated electronic portal. According to the decision of His Excellency the Minister of Human Resources and Social Development No. (1123.3) dated 18/06/1442 AH, which restricts remote work in customer service occupations to Saudi nationals.

Therefore, the Central Bank confirms that all financial institutions must comply with the aforementioned instructions alongside the attached ministerial decision.

For response and implementation effective from its date. Yours sincerely,

Mohammed bin Sulaiman Al-Rajhi Minister of Human Resources and Social Development

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Minister's Office

Human Resources and Social Development

Ministerial Decision

The Minister of Human Resources and Social Development, based on the authorities granted to him by law, having reviewed the provisions of Article (3), Article (10 bis), and Article (36) of the Labor Law issued by Royal Decree No. (51/M) dated 23/8/1426 AH, amended by Royal Decree No. (24/M) dated 12/5/1434 AH, amended by Royal Decree No. (1/M) dated 23/1/1450 AH, amended by Royal Decree No. (6/M) dated 5/7/1436 AH, amended by Royal Decree No. (14/M) dated 27/02/1440 AH, and amended by Royal Decree No. (5/M) dated 27/11/1440 AH, and Ministerial Decision No. (13052) dated 28/12/1438 AH, and Ministerial Decision No. (101239) dated 6/7/1442 AH, and concluding the "Saudization of Professions" initiative, one of the Ministry's initiatives dated 20/1/1442 AH, and based on what public interest dictates.

It is hereby approved as follows:

First: Restricting remote work in customer service occupations and positions to Saudi nationals through direct or indirect retirement, which includes employment contracts or service assignments under which remote work is provided to the customer service occupations that constitute the main activity of the establishment.

Second: This decision applies to all occupations and positions providing remote customer service via telephone, email, messaging platforms, social media, direct interaction, and other means of providing remote customer service, in accordance with the provisions of Ministerial Decision No. 13052 dated 28/12/1438 AH and Ministerial Decision No. (101239) dated 6/7/1442 AH, and any amendments thereto.

Third: Penalties stipulated in the table of violations and penalties issued by Ministerial Decision No. 178/43 dated 27/9/1440 AH shall apply to establishments violating the provisions of this decision, subject to any amendments.

Fourth: The procedural guide is an integral part of this decision and both shall be implemented 180 days from the date of issuance of this decision.

Fifth: This decision shall be published with the procedural guide on the Ministry's website.

Sixth: This decision supersedes all previous decisions that conflict with it.

Seventh: The Deputy Minister for Work shall take the necessary steps to implement this decision.

God is the Grantor of Success.

Eng. Ahmed bin Sulaiman Al-Rajhi Minister of Human Resources and Social Development

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PROCEDURAL GUIDE

For the Decision on Saudization of Remote Customer Service Occupations

First Edition Jumada al-Thani 1442 AH

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TABLE OF CONTENTS

1. Introduction and Purpose of the Guide 3
2. Terms and Definitions 3
3. Decision on Saudization of Remote Customer Service Occupations and Positions 4
4. Decision Implementation Date 4
5. Targeted Occupations 5
6. Violations and Penalties 6
7. Calculation in Nitaqat Program 6
8. Support and Employment Programs 6
9. Frequently Asked Questions 6

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1. INTRODUCTION

The Ministry of Human Resources and Social Development is keen to provide stimulating, productive, and stable employment for Saudi nationals across various regions of the Kingdom, enhancing their participation in the labor market. Based on the Ministry's direction to Saudize sectors and target occupations in line with Vision 2030 objectives, and referencing Ministerial Decision No. (----) dated (1442//) regarding the Saudization of remote customer service occupations and positions to empower youth with employment opportunities in the private sector.

This decision is considered part of a series of Saudization decisions developed by the Ministry in collaboration and partnership with relevant government and supervisory authorities to establish a suitable and stimulating work environment for national human resources, expanding participation with the private sector in accordance with the Saudization strategy focused on developing human capital and enhancing economic contribution. It is not a substitute for or conflicting with previous Saudization decisions issued by the Ministry. This guide also clarifies the details of the decision on remote customer service occupations, including targeted activities and general conditions, support programs provided by the Human Resources and Social Development system, as well as answers to the most common questions.

2. TERMS AND DEFINITIONS

Decision on Saudization of Remote Customer Service Occupations and Positions:

Refers to (the Ministerial Decision) No. (----) dated (1442//) regarding the Saudization of remote customer service occupations and positions, including any amendments thereto.

Customer Service Occupations:

Includes all occupations classified as customer service occupations, and those categorized according to the "Saudi Unified Occupational Classification", adopted by Council of Ministers Decision No. (660) dated 24/10/1441 AH, as intended in this guide.

Customer Service Representatives:

Refers to every person registered in the establishment as a worker, subject to occupational classification in one of the customer service occupations or related occupations.

Grace Period:

180 days from the date of issuance of the Ministerial Decision on Saudization of remote customer service occupations, during which the establishment may work to correct its status to reach its specific target.

Implementation Period:

The period during which the establishment is obligated to implement the decision, subject to administrative procedures and penalties in case of non-compliance.

Establishment:

Any legal entity, including companies and institutions, whether providing customer service as a specialized main activity or supporting activity, or by outsourcing this service to their customers.

Supervisory Authorities:

The competent or supervisory government authority over establishments according to activity or licensed/classified classification for providing products or services.

Targeted Occupations:

Customer service occupations and positions exempted from the decision's application in coordination with supervisory authorities.

Support and Employment:

Refers to the support and employment programs provided by the Human Resources and Social Development system, its companies, or relevant supervisory authorities to enhance and support the sector.

Calculation in Nitaqat Program:

The minimum monthly salary for a Saudi worker, upon which the Saudization ratio is calculated in the Nitaqat program.

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3. DECISION ON SAUDIZATION OF REMOTE CUSTOMER SERVICE OCCUPATIONS AND POSITIONS

This decision aims to provide new employment opportunities for Saudi nationals and regulate the labor market. The Ministry has launched several initiatives, including the "Remote" initiative concerning the contractual relationship of remote workers under labor law provisions, ministerial decisions, and approved internal regulations in establishments, as well as mandatory social insurance registration. Following this decision, some establishments have engaged non-Saudi workers who are not registered in the official social insurance records and work remotely through direct contracts or by assigning tasks to other entities within the Kingdom. These practices have a negative impact on national establishments, Saudization, job opportunities, and the regulation of the Saudi labor market.

(Copy of the decision after approval)

4. DECISION TIMELINE

The implementation of the Ministerial Decision on Saudization of remote customer service occupations begins 180 days from the date of issuance. Penalties stipulated in this guide and related decisions by the Ministry of Human Resources and Social Development and supervisory authorities shall apply accordingly. Administrative penalties will be enforced on all establishments that have not implemented the decision after the 180-day grace period from the issuance date.

5. TARGETED OCCUPATIONS:

The decision applies to all occupations classified as customer service occupations, which provide remote services via telephone, email, social media, direct interaction, and other means. It includes all (customer service) occupations, including supervisory and executive positions, as well as any other occupation performing these tasks under occupational code (42), according to the "Saudi Unified Occupational Classification", adopted by Council of Ministers Decision No. (660) dated 24/10/1441 AH.

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6. VIOLATIONS AND PENALTIES

1. If a worker employed in one of the customer service occupations works in an occupation different from that recorded in the employment contract, the penalty (employer enabling a non-Saudi worker to work in a city other than that recorded in the work permit) stipulated in Ministerial Decision No. 178/43 dated 27/9/1440 AH and its amendments shall apply.

2. Penalties and fines for violations apply to all establishments in the Kingdom practicing any customer service occupations, with exemptions determined in coordination with relevant government authorities and according to their licensed requirements.

7. CALCULATION IN NITAQAT PROGRAM:

Saudi workers are calculated in accordance with Ministerial Decision No. 61706 dated 03-04-1442 AH regarding raising the minimum salary threshold for calculating Saudi salaries in Nitaqat.

8. SUPPORT AND EMPLOYMENT PROGRAMS

1. The Human Resources Development Fund (Hadaf) provides training and employment support programs for Saudis that can be utilized to Saudize customer service occupations. The Fund offers several training programs (Tamayoz, Durib, Summer, Hadaf Leadership Academy, Saudi HR Portal), and several employment enablement and support programs for Saudis (Employment Request Channels, Wage Support, Tawafoq, National Work Portal, Strategic Companies Support Programs), designed in coordination with the Non-Traditional Work Patterns Management at the Saudization Agency of the Ministry of Human Resources and Social Development.

(https://hrsd.gov.sa/ar/ecalc/index)

2. Support programs provided by supervisory authorities.

9. FREQUENTLY ASKED QUESTIONS

Does the decision on Saudization of remote customer service occupations apply in parallel with Nitaqat? Yes, the decision applies to targeted occupations within establishments that are outsourced, as well as statutory penalties regardless of the establishment's Nitaqat rating. In other words, the establishment's Nitaqat status does not affect the application of the decision on remote customer service occupations.

Does the decision apply only to occupational titles or to the actual work performed by the worker? The decision applies to both occupational titles and the actual work performed by workers for services provided through the establishment, an intermediary, or another party.

Additional FAQs will be added to the remote work website https://teleworks.sa/ar and updated periodically.

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For more information, please contact: www.hrsd.gov.sa