Posted inJobsCulture & SocietyLatest NewsSaudi Arabia

Saudi Arabia announces major labour rule change

Saudi Arabia is safeguarding the rights of more than 3.7m domestic workers with insurance rules

Saudi flag

Saudi Arabia’s domestic labour sector, the largest in the Middle East with 3.74 million domestic workers, is undergoing significant reforms to enhance recruitment and safeguard workers’ rights.

The Ministry of Human Resources and Social Development is introducing insurance of domestic labour contracts, aimed at protecting both workers and employers.

This aligns with the ministry’s broader strategy, which includes the wage protection program, electronic contract documentation, labour culture awareness initiatives, and the unified contract program.

Domestic workers in Saudi Arabia

These measures, collectively, ensure respect for contractual rights and define obligations for all contractual parties, and set a ceiling for recruitment from several countries.

Launched in February 2024 through the Musaned platform, the insurance covering domestic labour contracts is a key development.

It ensures that both employers and domestic workers are granted their due rights, such as salary and compensation for unforeseen circumstances. The insurance is mandatory for the first two years of employment and optional thereafter.

This insurance provides compensation for domestic workers in cases of permanent disability due to accidents and safeguards their financial rights if employers default on payments.

Employers, on the other hand, are granted compensation for recruitment expenses if a worker is not available, is ill, or dies, including repatriation costs.

The insurance and the continuous updates to regulations, spearheaded by the ministry, aim to make the recruitment sector more attractive and secure.

They also work to improve the contractual relationship between workers and employers, foster a supportive working environment, and align with international human rights standards.

The ministry’s comprehensive approach includes stringent regulations against human trafficking, unauthorised visa sales, and financial exploitation.

It highlights a commitment to improving labour conditions and promoting human rights Saudi Arabia.

Follow us on

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.