Saudi Arabia is implementing significant reforms to its domestic labour sector to enhance recruitment practices and safeguard workers’ rights.
The Ministry of Human Resources and Social Development has launched mandatory insurance for domestic labour contracts, a move designed to protect both workers and employers. This initiative is part of a broader strategy that includes the wage protection program, electronic contract documentation, labour culture awareness campaigns, and the unified contract program.
Introduced in February 2024 via the Musaned platform, the insurance is mandatory for the first two years of employment and optional thereafter, Arabian Business reported on Monday. It guarantees workers their rights, including salary payments and compensation in unforeseen circumstances such as accidents resulting in permanent disability.
Employers also benefit from the insurance, receiving compensation for recruitment costs if a worker becomes unavailable due to illness, death, or repatriation needs.
The ministry’s reforms aim to ensure respect for contractual rights, establish clear obligations for all parties, and set recruitment ceilings from various countries. These measures and updated regulations are intended to make the recruitment sector more secure and attractive while fostering a supportive working environment aligned with international human rights standards.
The ministry also enforces strict regulations against human trafficking, unauthorised visa sales, and financial exploitation, emphasising its commitment to improving labour conditions and protecting human rights in Saudi Arabia.