Saudi Arabia has announced a new insurance product to protect expat workers against financial defaults.
The Ministry of Human Resources and Social Development, in collaboration with the Insurance Authority, has launched the Insurance Product to cover the entitlements of expat workers in private sector establishments in case of financial default.
The Insurance Product aims to protect their financial rights in the event a company defaults, and is unable to pay wages for a specified period.
Saudi expat insurance
The benefits include, for example, a travel ticket for expat workers who wish to return to their home country.
The launch of the Insurance Product is part of ongoing efforts to improve the labour market in the Kingdom through policies and regulations, to secure the contractual rights between workers and employers, and to increase the attractiveness and efficiency of the labour market, raising it to international levels.
The Insurance Product is also consistent with a package of procedures established by the ministry to protect the rights of both parties in the labour relationship, including the Wage Protection Law and contract documentation.
The Saudi ministry has issued a guidebook that explains all the procedures related to the Insurance Product; it can be accessed through its official website.
Coverage of expat workers included in the Insurance Product has started on October 6.
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