Saudi Gazette report

NEOM — The Council of Ministers has obliged recruitment companies to include an insurance cover while executing contracts to hire domestic workers on behalf of their clients.

The insurance cover in the contract for domestic workers seeks to ensure the rights of both employers and the workers if the latter refuse to continue work or do not complete the period of the contract.

The decision was taken during the Cabinet's virtual session on Tuesday headed by Custodian of the Two Holy Mosques King Salman.

According to the decision, the cost of insurance will be included in contracts executed between recruitment companies or offices and employers for the first two years, beginning from the date of the contract.

After two years, the insurance will be optional for the employer upon renewing the worker's residency.

Human Resources and Social Development (MHRSD) Minister, Ahmed Al-Rajhi has welcomed the Cabinet decision, saying it will help achieve many gains such as increasing the attractiveness of the Saudi labor market, facilitating bilateral negotiations with countries, improving the contractual relationship, reducing risks in the domestic labor market, which will contribute to reducing prices and guaranteeing rights for all parties.