HR Ministry sets 5% as cost of canceling contract for recruiting domestic helps

  • 4/19/2020
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By Abdulrahman Al-Misbahi Okaz/Saudi Gazette JEDDAH — The Ministry of Human Resources and Social Development was scheduled to begin Saturday amending the mediation contract for recruitment of domestic workers, in line with the decision of the minister Eng. Ahmed Al-Rajhi, due to the current circumstances beyond control of the parties to the contract, that is, the impacts of the spread of the coronavirus pandemic taking into consideration the public interest. The minister’s decision comprised suspension of work with the mediation e-contracts signed via “Musaned” platform only, as of March 16, 2020, until further notice from the pertinent agency. The suspension period will not be counted as part of the contract period. This is apart from dealing with the valid contracts concluded via Musaned platform only, in line with a certain mechanism. First, are the contracts in force (i.e, the valid contracts) that are still within the 90 days period. In this connection, any of the two parties to the contract can request to abrogate it, bearing the cancelation fee of 5 percent of the recruitment contract signed during a period of 6–30 days, and 10 percent for the contract signed during the period of 31–90 days. As to contracts, which have exceeded the 90 days specified for recruitment of workers, the client can request cancelation of the contract. The whole contract value will be refunded, and the licensee will be exempt from payment of any fine stipulated in the mediation contract. As to the contracts, which surpassed the full recruitment period of 150 days, the licensee will have to deal with the contract in line with what has been stipulated in the mediation contract concluded between him and the client. The decision has stressed that the licensee must remain committed to refunding the amount to the client within 90 days from the date of abrogating or canceling the contract. It is permissible to agree on an extension, with the written approval of the client.

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