New wage insurance service introduced to protect expatriate workers

At a glance

• The Ministry of Human Resources and Social Development (Ministry) launched an insurance service on 6 October 2024, to ensure expatriate workers receive their wages if employers fail to pay.
• Workers can claim compensation through a designated insurance company, with the Ministry overseeing compliance and enforcing penalties for employers who do not meet their wage obligations.
• Guidelines have been released, offering further detail. 

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A new insurance service was introduced by the Ministry aiming to enhance the rights and working conditions for expatriate workers. This came into force on 6 October 2024 and ensures workers receive their wages if employers fail to pay. 

The Ministry has explained that the insurance product, offered through insurance companies in Saudi Arabia, covers the payment of expatriate workers' dues in the event their employers fail to meet payroll obligations. This coverage is provided according to the terms and benefits outlined in the insurance policy, as governed by the relevant regulations and procedures. These benefits include a return flight ticket for expatriate workers who wish to return to their home country, the ministry added. This initiative supports the development of the labour market by safeguarding contractual rights between workers and employers, improving the market's appeal and efficiency locally and globally. It also aligns with other measures, like the wage protection system and contract documentation, to protect both parties' rights in labour relations.

Guidelines have since been released to provide further detail about the insurance service.