Domestic worker contract insurance by recruitment firms to boost market attractiveness: Al-Rajhi

Ahmed Al-Rajhi, Minister of Human Resources and Social Development

The decision by the Saudi Cabinet to oblige recruitment companies to insure the contract of domestic worker recruited by them, on behalf of the client, will boost the attractiveness of the labor market, facilitate bilateral talks and improve contractual relation, according to Ahmed Al-Rajhi, Minister of Human Resources and Social Development.

The decision will eliminate risks in the domestic labor market, which will contribute to reducing prices and guaranteeing rights for all parties, Al-Rajhi said in a ministerial statement.

The Saudi Cabinet, in its meeting held on May 25, 2021, obliged recruitment companies to include an insurance cover while executing contracts to hire domestic workers on behalf of their clients.

The insurance cover in the contract for domestic workers seeks to ensure the rights of both employers and the workers if the latter refuse to continue work or is unable to complete the period of the contract due to permanent or partial disability caused by an accident.

According to the decision, the cost of insurance will be included in contracts executed between recruitment companies or offices and employers for the first two years, starting the date of the contract. After two years, the insurance will be optional for the employer upon renewing the worker's residency.

It also includes the type of insurance policy according to what is stipulated in the Cooperative Insurance Companies Control Law, and determine the steps for purchasing and issuing the policy, the mechanism for paying its premiums.