Mandatory transfer of domestic workers' salaries: Protection of rights and regulation of the market

Legal researcher Abdulmalik Al-Fassi affirmed that the recent regulatory trends in the Kingdom of Saudi Arabia, specifically the decision mandating employers to transfer domestic workers' salaries through digital channels and official, approved platforms, represent a significant legislative leap reflecting the maturity and development of the labor market. This decision comes within the framework of the relevant authorities' efforts to regulate the contractual relationship between employers and employees, ensuring the highest standards of fairness and transparency.
The context of digital transformation and the Kingdom's Vision 2030
This decision cannot be separated from the broader context of the Kingdom's Vision 2030, which aims to automate procedures and transition towards a cashless society. Al-Fassi explained that shifting the wage payment mechanism from traditional methods (cash) to a digital system via e-wallets and banks provides a reliable and tamper-proof record. This transformation is not merely an administrative procedure; it is a fundamental pillar of the Wage Protection Program implemented by the Ministry of Human Resources and Social Development to guarantee workers' rights.
Protecting legal positions and reducing conflicts
Al-Fassi explained that the digital transformation provides both parties (employer and employee) with irrefutable legal proof; the employee is guaranteed timely payment of their dues, and the employer possesses conclusive evidence of fulfilling financial obligations, thus eliminating the possibility of frivolous lawsuits or forgetfulness. He pointed out that the previous lack of financial documentation was the primary reason for the backlog of labor cases in the courts, and this decision contributes to expediting the resolution of disputes thanks to the availability of indisputable digital evidence.
Security and economic dimensions: Combating cover-ups
From another perspective, the legal researcher emphasized that the decision has implications that extend beyond bilateral relations, serving the interests of the national economy and social security. Bank transfers directly contribute to combating commercial concealment and illegal employment, as they allow regulatory bodies to track financial flows and uncover irregular practices or accounts used for money laundering or concealing true wages.
Enhancing the international standing of the Saudi labor market
Al-Fassi concluded by emphasizing that these steps enhance the Kingdom's international reputation in the areas of human and labor rights, as this regulation aligns with the standards of the International Labour Organization and global best practices in labor market governance. Creating a safe and transparent work environment makes the Kingdom an attractive destination for skilled workers and ensures the stability of Saudi families by reducing problems associated with domestic workers.



