Manama: Saudi Arabia will implement an insurance plan to protect the rights and benefits of foreign workers in the private sector, it was announced.
Saudi Cabinet has given the nod to go ahead with this plan, which will be the latest in preserving the rights of millions of migrant workers in the kingdom, according to state media reports.
The government will bear the costs of applying the insurance product and it will not incur any liabilities to the companies, the report added.
Currently in the country, if a company lays off its operation or plunges into deep crisis, the expat worker may lose his wage arrears and long standing service benefits. The new insurance plan aims to avoid such types of situations by ensuring insurance coverage to the benefits of the employee. Even if the company shuts down, the worker will not lose the benefit, said Human Resources and Social Development minister Ahmed Al-Rajhi.
He extended his thanks and appreciation to King Salman and Crown Prince Muhammad Bin Salman for their approval on the new insurance product.
The insurance plan targets non-Saudi workers in private sector facilities in the Kingdom, which will contribute to preserving workers' rights if they are stalled and reduces the risk of any negative effects if companies collapse, he added.
Minister further explained that the product's approval is an example of the high attention the Kingdom pays to the private sector companies and to augment its role as a major partner in developing the economy and providing more job opportunities.
The Cabinet has also approved the formation of a committee for the implementation of the new product, which consists of representatives from the Ministry of Human Resources and Social Development, the Ministry of Finance, and the Saudi Arabian Monetary Agency (SAMA).
The committee has been tasked with classifying the foreign 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.
