New Insurance Scheme for Expat Workers' Rights Takes Effect

The Ministry of Human Resources and Social Development, alongside the Insurance Authority, has launched a new insurance scheme titled Insurance Product, aimed at protecting the rights of expatriate workers in Saudi Arabia. The scheme, effective starting October 6th, seeks to alleviate the financial burden on workers if their employers default on wage payments.

This initiative ensures that expatriate workers in the private sector receive their dues even if their employers fail to pay. The Insurance Product is provided through licensed insurance companies in the Kingdom, offering coverage for unpaid wages as outlined in the insurance documentation.

Included in the benefits of the scheme is assistance with travel costs for expatriate workers wishing to return to their home countries upon final exit. The launch of this product aligns with ongoing efforts to enhance the labour market in Saudi Arabia by establishing robust policies and legislation that safeguard workers' contractual rights while also promoting a more attractive labour market for both local and international employers.

The new insurance scheme complements existing frameworks, such as the Wage Protection Law and contract documentation procedures, designed to protect the rights of both workers and employers.