Linking insurance to domestic labor contract will protect rights of both parties: Saudi ministry

Linking insurance to domestic labor contract will protect rights of both parties: Saudi ministry

JEDDAH — The Saudi companies and establishments for the recruitment of domestic workers are awaiting the announcement of the Ministry of Human Resources and Social Development (MHRSD) with regard to linking insurance to domestic labor contracts in the near future.

Okaz/Saudi Gazette has learnt from informed sources that the ministry is making finishing touches before making an announcement with regard to implementing the landmark decision.

The ministry, in cooperation with the Saudi Central Bank (SAMA), will start implementing the decision to apply insurance on labor contracts while hiring domestic workers.

The major move will bring forth several advantages both for domestic workers as well as for their employers. The ministry has been completing the procedures for the insurance of labor contracts of domestic workers through linking insurance companies to its Musaned exclusive platform for the recruitment of domestic workers.

There are several provisions that are aimed at protecting the rights and fulfilling the duties of both house workers and their employers.

The insurance on the domestic labor contract will be beneficial for the employer in terms of refunding of the value of recruitment costs in the event of any cases of runaway of workers or abstention from work in the remainder of the contract period