Saudi Arabia requires recruitment firms to insure domestic worker contracts

Saudi Arabia made it mandatory for recruitment firms to insure domestic workers’ contracts, in an effort to protect the rights of both parties to the contract and increase the attractiveness of the Saudi job market.

According to the Saudi Press Agency (SPA), the decision was made during a virtual cabinet meeting on Tuesday presided over by King Salman bin Abdulaziz.

According to the government decision, the cost of insurance will be included in the overall cost of the contract concluded between the recruitment office and the employer for the first two years of the contract. Following that, insurance will be optional for the employer when the worker’s iqama is renewed.

The new decision is expected to make the Saudi labor market more appealing, improve the contractual relationship, reduce risks in domestic labor recruitment, and increase both parties’ commitment.