Insurance cover for employers against runaway workers

Insurance cover for employers against runaway workers
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Insurance cover for employers against runaway workers
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Updated 19 June 2013
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Insurance cover for employers against runaway workers

Insurance cover for employers against runaway workers

Ahmad Al-Hamaidan, deputy minister of labor for labor policies, said that the government plans to compensate employers in the event expatriate workers abscond after arriving in the Kingdom.
“This is meant to guarantee the interests of all parties involved,” he said. He did not give details of the scheme that is being worked out.
Al-Hamaidan stressed that there are no plans to extend the grace period beyond the July 3 deadline. “This is not a matter to be decided by the ministry. We therefore consider the deadline as final, and no person will be excluded from the penalties announced by the ministry, whether that person is a worker or a family member,” he said.
The ministry had earlier declared that only a royal decree could see the deadline being extended despite appeals from some countries, including the Philippines, to the Saudi government to provide more time for thousands of workers to rectify their status.
On other labor issues, Al-Hamaidan said the ministry is conducting a study to improve the status of some categories, including those born and raised in the Kingdom and even those who came to Saudi Arabia more than 15 years ago.
Meanwhile, regarding domestic aide, Al-Hamaidan said the ministry was of the view that the new employers of domestic workers should keep these workers in the country for three months to ensure there are no pending court cases or claims against them from their previous employers.
The new employer must not allow the worker to leave the Kingdom either on an exit-only visa or on an exit/re-entry visa for this period. “We have introduced this condition only to allow the previous employer to file a lawsuit against the worker if the employer has any documented financial rights on the worker, or if the employment contract included a clause to indemnify the employer in certain cases,” he said.
“We made certain allowances to help people normalize their status. The purpose of the grace period is to allow people to make maximum use of the time available to correct violations and improve the work environment,” he said, adding that it was not meant to drive away workers from workplaces. “The ministry places the interest of the country foremost, and any citizen who feels he has been wronged can file a complaint in a court,” he said.
Meanwhile, the Ministry of Labor has sent letters to all businesses registered with the ministry, warning them that it will start penalizing them for violations once the grace period is over. The warning clearly indicates that there was no scope for extension of the grace period.