Foreign Workers’ rights to be protected by “Special Insurance” in Saudi Arabia

The Kingdom of Saudi Arabia has approved the use of an “Insurance Product” which protects the rights and benefits of non-Saudi workers in the private sector. The decision includes that the state will bear the cost of applying the insurance product.

The aim behind the Insurance Product is to protect the rights of workers in the private sector. If the private sector closes or is in crisis, the foreign worker may lose his wage arrears and service benefits. Insurance coverage aims to avoid this situation. Even if the company closes, the worker will not lose his benefits.

The Saudi Arabia Cabinet has also approved the formation of a committee comprising representatives from the Ministry of Human Resources and Social Development, the Ministry of Finance, and the Saudi Arabian Monetary Agency (SAMA) to help with the implementation.

The committee have been tasked with classifying the non-Saudi workers in private sector enterprises targeted in applying the insurance product and setting the necessary controls and mechanisms to implement the insurance product.

The committee will also determine the value of the insurance policy, according to the insurance companies monitoring law.