Posted by : Aahil Shaik Wednesday, March 9, 2022

Insurance on Domestic labor contracts in to be applied soon in Saudi Arabia


The Ministry of Human Resources and Social Development in cooperation with the Saudi Central Bank (SAMA) to start imposing the decision to apply insurance on labor contracts while hiring domestic workers.







This landmark move to bring out several advantages for both domestic workers and their employers, it would come into force in this month or April as per the local newspaper report.

- The ministry is finishing the procedures related to insurance for labor contracts of domestic workers by linking it through insurance companies and Musaned exclusive platform for hiring of domestic workers. A decision related to be announced soon. Trending : New rules to provide weekly off, annual leave and end of service benefits for domestic workers

- The insurance on the domestic labor contract will be beneficial for the employer in refunding the value of recruitment costs in case of runaway of workers or Absent from Work in the remainder of the contract period after the expiry of the 3 months probation period.





- While for domestic workers, they will be given compensation for their overdue salary in case of failure on the part of the employment to make its prompt payment. The Ministry's decision to introduce insurance on the recruitment contract will not be mandatory, but will be optional for beneficiaries wishing to recruit domestic workers.

- Moreover, linking recruitment of domestic help with the insurance policy will bring more advantages for the beneficiaries, as it include getting discounts of certain percentage of the value of the insurance premium during its renewal in case that the sponsor complies with the terms and conditions of the policy, including paying the worker's salaries on a regular basis. Most Viewed : Imposing financial fee on individuals exceeding limit of domestic workers

- The Article 6 of the Regulations for Domestic Workers and those of similar status, the domestic worker is obligated to perform the duty agreed, such as obeying orders of the sponsor and the members of his family in line with the provisions of the labor contract and not to refuse work or quit work with a valid reason.




- The Article specifies that the workers shall not engage in any work for their own personal benefit. The domestic worker shall safeguard the property of the employer and his family members, and shall not do anything which is harmful for the family members, including children and the elder people. See Also : 15% increase in recruitment of domestic workers and these are the most importing countries

- The domestic worker is also bound to preserve the secrets of employer, as well as his family members and not disclose them to others.

- The regulations also states, the workers shall not do anything that is damaging the dignity of the employer or his family members. They should not interfere in their personal affairs. They also have to respect the religion of Islam, follow its regulations that are in force in Saudi Arabia as well as the customs and traditions of Saudi society. Follow Saudi Expatriates on Twitter




Insurance on Domestic labor contracts in to be applied soon in Saudi Arabia - Saudi-Expatriates.com

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