Saudi Arabia Makes Insurance Mandatory for Insurance Workers

Saudi Arabia has implemented mandatory insurance for new domestic worker contracts as part of labor market regulation. The coverage applies to the initial two years, becoming optional for the employer afterward. This service guarantees compensation for both the domestic worker and employer in specific situations such as absence, escape, death, or incapacitation due to diseases.

Administered through a government platform, the initiative aims to protect domestic worker rights, including compensation for accidents resulting in infirmity, and unpaid wages due to the employer’s death or incapability. Saudi labor authorities, seeking to regulate the domestic labor market, launched Musaned—a platform providing information on rights, duties, and services like visa issuance and recruitment.

In October, Saudi Arabia introduced new rules for employing domestic workers, setting a minimum age of 21. Published in the Official Gazette, the regulations emphasize the Gregorian calendar for contract dates, unless stated otherwise, and prioritize dues to workers or heirs as first-degree debts.

Contractual provisions follow a contract shaped by mandatory rules set by the ministry, with the Arabic text being the authorized version, translated into the worker’s home country language. Contracts should have a fixed duration, renewable for a year if unspecified. Working hours are capped at 10 hours daily, with a weekly paid 24-hour rest.

The regulations prohibit employers from withholding passports or personal belongings. Domestic workers in Saudi Arabia encompass various roles such as housekeepers, drivers, cleaners, cooks, guards, farmers, live-in nurses, tutors, and nannies. The Ministry of Human Resources emphasizes Musaned as the official recruitment platform.

The move reflects broader efforts to regulate and standardize the domestic labor market, ensuring the protection of both workers and employers. The focus on insurance, contractual clarity, and Musaned as the designated platform showcases Saudi Arabia’s commitment to improving conditions for domestic workers while establishing clear guidelines for employers in the kingdom. These measures, along with the set age limit, contract regulations, and emphasis on worker rights, contribute to a more structured and regulated domestic labor market in Saudi Arabia.