Okaz/Saudi Gazette
RIYADH — The Ministry of Human Resources and Social Development (MHRSD) has paid arrears worth over SR15 million owed to 50 workers by their employers in the private sector during the month of September. This payment was part of an initiative by the ministry to settle the rights of those working with struggling companies and those subject to bankruptcy proceedings.
This initiative, implemented through the Labor Affairs Agency, aims to protect workers' rights, mitigate the effects of financial difficulties, and enhance labor market stability. The Ministry, in collaboration with the General Organization for Social Insurance (GOSI), launched an insurance product to cover the dues of expatriate workers in private sector establishments that are facing financial hardship. The goal is to protect these workers and minimize the impact of not receiving their financial entitlements when establishments are unable to pay wages for a specific period of time.
The insurance product, provided through insurance companies in the Kingdom, covers the dues of expatriate workers in the event that employers fail to pay their wages, according to terms and benefits covered and specified by the insurance policy in accordance with its policies and procedures. These benefits include, for example, a travel ticket if the expatriate worker wishes to return to his country.
The launch of the insurance product comes within the framework of efforts aimed at developing the labor market in Saudi Arabia through policies and legislation, preserving contractual rights between employees and employers, and increasing the attractiveness and efficiency of the labor market at the local and international levels. The insurance product is also consistent with the package of regulations and procedures established by the Ministry of Human Resources and Social Development to protect the rights of both parties in the employment relationship, including the Wage Protection Law and contract documentation.
The worker is not required to leave for their country to receive compensation. They will be able to receive compensation if their services are transferred to another establishment. The insurance coverage will also include providing the workers with a return ticket to their country, up to a maximum of SR1,000 in economy class, upon presentation of proof of completion of all necessary departure procedures, such as a final exit visa.
The cost of the ticket will not exceed SR1,000. The decision excludes “wholly state-owned establishments, probationary workers, domestic workers, seasonal and temporary workers, members of the employer’s family, sports club players, agricultural workers and shepherds, and workers coming to perform a specific task.” The insurance product will not cover the workers employed by struggling companies before the product's implementation.
The ministry specified five conditions for expatriate workers to receive insurance compensation: They must not be among the excluded workers; they must be registered in the struggling establishment’s records during the claim period and their employment status must be active; they must submit a legally recognized document proving they have not received their dues from the struggling establishment; they must not have benefited from compensation under the insurance product within the same year; and they must provide proof of their intention to leave the Kingdom when requesting travel ticket compensation.”
The employer/establishment will be notified through official communication channels when its expatriate workers submit a compensation claim. Ten working days will be granted for the employer to file an objection. If the establishment does not file an objection, the eligible workers will be compensated. Upon payment of the compensation that is due to the workers, the insurance company has the right to seek recourse against the establishment and demand payment of the compensation paid to its employees, or a portion thereof.
