Nepal & Saudi Arabia inks labour agreement

KATHMANDU: Nepal and Saudi Arabia have finally signed a long-awaited bilateral labour agreement, marking a major milestone in protecting and managing Nepali migrant workers in one of their largest overseas destinations.

The agreement on the recruitment and management of general workers was signed at a special ceremony in Riyadh after more than a decade of diplomatic and technical negotiations.

Nepal’s Minister for Labour, Employment and Social Security, Rajendra Singh Bhandari, and Saudi Arabia’s Minister of Human Resources and Social Development, Ahmed bin Sulaiman Al-Rajhi, signed the deal on behalf of their respective governments.

With the signing of this agreement, the employment of hundreds of thousands of Nepali workers in Saudi Arabia is expected to become more secure, systematic and dignified.

Nepal had been pursuing a formal labour agreement with Saudi Arabia since 2070 BS.

Although several rounds of draft exchanges took place over the years, the process repeatedly stalled without reaching a conclusion. Most recently, the Nepal government’s Cabinet meeting on Bhadra 13 paved the way for final approval.

However, political changes following the “Gen-Z Movement” protests on Bhadra 23 and 24 delayed the signing process.

With political stability restored, negotiations resumed and have now culminated in the landmark agreement.

Key Provisions of the Agreement

The agreement places workers’ rights and welfare at its core. Its main features include:

• Transparent recruitment process: Worker selection and recruitment will be made fair, transparent and cost-effective, reducing the financial burden on migrant workers.

• Grievance handling and protection: Workplace disputes, wage-related issues and social security concerns will be addressed in line with international labour standards.

• Legal remedies: Employers found guilty of contract substitution, restricting workers from returning home, or neglecting medical treatment can be brought under legal action more easily.

According to the Department of Foreign Employment, Saudi Arabia remains one of the top destinations for Nepali migrant workers.

In the fiscal year 2081/82, as many as 152,557 Nepalis obtained labour approval to work in Saudi Arabia, up from 141,502 in the previous fiscal year.