Monday, October 14, 2024
Insurance Product to cover Expat worker dues if Company goes bankrupt
With the aim of safeguarding expatriate workers and minimizing the impact of losing their financial rights in the case that companies in the private sector failure and are unable to commit to paying salaries for a specific period, the "Insurance Product" was launched by the Ministry of Human Resources and Social Development and the Insurance Authority to cover the dues of the expat workers in case of bankruptcy. See Also : 3 cases that will allow Job transfer without current employer approval
Insurance companies in the Kingdom offer a "insurance product" that, if the business owners fail to pay the salaries of expatriate workers, the policy will cover their dues according to the terms and benefits stated in the policy and the regulations that govern it.
For instance, if the expat worker wants to go back to his home country, he can get a plane ticket as compensation.
The introduction of the "Insurance Product" is part of a larger initiative to strengthen the Kingdom's labor market via new laws and regulations, protect employees legal rights in employment contracts, and make the country's labor market more competitive on an international level. Recommend : A company in Saudi Arabia introduces 4-day work week
In addition to the wage protection system and contract documents, the "insurance product" is in line with the set of processes and procedures put in place by the Ministry of Human Resources and Social Development to safeguard the rights of all parties involved in the labor relationship.
You can find the insurance product's procedures described in a guide published by the Ministry of Human Resources and Social Development. You can find it on the Ministry's website.
The coverage for expatriate workers included in the insurance policy is into effect, from October 6, 2024. Follow Saudi Expatriates on X
Insurance Product to cover Expat worker dues if Company goes bankrupt
