Arab News :
Saudi Arabia has launched an insurance service that will cover unpaid wages for up to six months and provide travel assistance for expatriates working in the kingdom in the case of private sector defaults.
“The service covers specific benefits as outlined in the policy, allowing foreign workers in defaulting companies to receive their entitlements – within the financial limits of the policy – and provide a plane ticket to return to their home country, if they wish to do so, within the policy’s financial limits,” Arab News said citing an official at Ministry of Human Resources and Social Development of the kingdom.
“In rare cases when wages are not fulfilled, this insurance service will cover unpaid wages and entitlements for up to six months, with a maximum compensation payout of SR17,500 ($4,661) provided the combined rights of all workers do not exceed the overall insurance coverage limit for the company,” the official told Arab News.
The report said, “But this payout is contingent on 80 per cent or more of the workers in the establishment not having received their wages or entitlements, per the ministry’s regulations.”
“Affected workers who wish to return to their home countries will be provided with a travel ticket, with cover up to SR1,000 ($266),” it said.
The official said, “Workers are entitled to a return ticket to their home country if they wish to leave the country directly without transferring their services to another company and can provide proof of completing all necessary procedures for departure, such as obtaining an exit visa and proof of a travel booking to their home country.”
Private sector employees wishing to apply for the insurance policy can submit claims through the designated insurance company responsible for handling compensation claims.
The ministry will oversee the process to ensure compliance and smooth execution of the service.
