Insurance-linked to labor contracts of domestic workers from the coming year

insurance to domestic labor contracts
The Saudi Central Bank (SAMA) will process the application of insurance for domestic workers.

RIYADH — The Ministry of Human Resources and Social Development has planned to start linking insurance to domestic labor contracts, beginning from 2022.

The Saudi Central Bank (SAMA) will process the application of insurance for domestic workers.

Under the new regulation, both the employer and the worker will be guaranteed their rights and benefits. These include compensating the employer for expenses incurred to get a replacement. In the event of the worker’s death or their inability to work or affliction with chronic and critical diseases, and compensation for expenses of repatriating the dead body, belongings, and personal properties in the event of the death of the domestic worker.

The employer will also be compensated in the event of the worker’s absence or run away from work and compensation for the worker in the event of permanent total disability or permanent partial disability resulting from an accident.

According to Article Six of the Regulations for Domestic Service Workers, the domestic worker has to perform the agreed-upon work and follow the orders of the employer. And members of his family related to the implementation of the agreed-upon work, and not to refuse to work or leave the service without a legitimate reason.

The Council of Ministers has approved linking insurance to the domestic labor contract in May this year. As per the Cabinet’s decision, the insurance (Read: Health Insurance For Citizens Outside Saudi Arabia ) shall be for the first two years from the beginning of the contract. After this period, it would be optional for the employer while renewing the worker’s residency permit.

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