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Insurance agreed for Indonesian labor
HAMDAN AL-HARBI
Published in The Saudi Gazette on 30 - 05 - 2011

JEDDAH: The minister of labor has said that the “good faith” agreement signed with Indonesian representatives Sunday includes insurance covering the employment of Indonesian house workers as proposed by the National Recruitment Committee.
Minister Adel Fakieh told Okaz/Saudi Gazette that the agreement was recognized as replacing the conditions that had been put in place by the Indonesian embassy and which were deemed unacceptable by the Saudi government.
The embassy's conditions led to a halt in issuing tens of thousands of visas for house workers.
Fakieh said the insurance policy would provide security for both employer and employee. The employers are protected should employees abandon their service or should any other issues occur during the term of employment, in which case employers will be compensated by the insurance company for all expenses incurred in the recruitment of workers.
“Employees are also protected in the policy if employers fail to pay wages on time or as contracted,” he said.
“The insurance company will pay what employees are owed and their repatriation home. The insurance company will also prosecute employers to obtain its dues.”
Fakieh said, however, that fixed recruitment fees had not been set.
“The Saudi government does not interfere with the setting of prices,” he said. “Instead they are left to the force of supply and demand.”
Firms and organizations wishing to acquire visas, he added, are required to join a Chamber of Commerce and have a commercial register number.
“Those two conditions will mean that the number of participants in Chambers of Commerce will rise and thereby raise their income,” the minister said. “An agreement has been reached between the Ministry of Labor and the Chambers of Commerce so that a large part of those sums will be dedicated to support for training and small businesses.”


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