One of the most significant challenges for Saudi Arabia is the increasing demand for domestic and household workers. This is related to increasing recruitment of foreign workers; according to Saudi economists, the Kingdom recruits approximately 1.2 million migrant workers, while more than a million Saudi citizens remain unemployed. Indeed, Saudis occupy only 15% of jobs in the private sector, leading economists and experts to urge the government to revise recruitment policies. The underlying reason is that migrant workers may agree to work extended hours for lower remuneration, as compared to Saudis. For this reason, private companies prefer to hire foreign workers.
Another common recruitment problem in Saudi Arabia relates to the employment of low-skilled migrants from countries such as Pakistan, Bangladesh, India, Indonesia, etc. and the vulnerabilities these workers face. While employers of high-skilled migrant workers normally cover recruitment costs, low-skilled migrant workers in construction, agriculture and services (including domestic work) resort to private agencies to get assistance. On average, the cost goes up to $ 3,500 per migrant, including around $2,300 for visa costs, $350 for international transportation, and $245 for agents. The total cost thus amounts to several months of salary for these workers.
Saudi labour laws prohibit charging fees to workers, but recruitment agencies interpret those as prohibiting the deduction of wages in the destination country and, therefore, the fees are charged prior to departure, in origin countries.
Among low-skilled workers, women face further vulnerability. Most female migrant domestic workers in the Arab States are recruited from Indonesia, Bangladesh, Sri Lanka, India, Nepal, the Philippines and Ethiopia. According to a recent study, a significant portion of Bangladeshi women working in Saudi Arabia alleges to have been treated as a modern-day slave, experiencing delayed payment of wages and passport confiscation.
To cope with the problem of increased demand for domestic workers, as well as increased recruitment of foreign workers and the subsequent challenges, such as high recruitment costs and maltreatment, The Saudi Ministry of Labor has recently licensed new recruitment offices of household workers. The Ministry thereby hopes to boost competition and reduce costs. In addition, the Ministry activated an electronic recruitment webpage under an agreement that details working conditions and health and safety requirements and stipulates that contracts be in a language understood by workers.
According to ILO recommendations, Saudi Arabia is among the countries of destination that should consider mechanisms to address visa trading and simplify immigration procedures to reduce the layers of intermediation and, potentially, the costs.
Find out more about the degree of respect for workers rights in this country based on ITUC Global Rights Index here.