Expats Exploited In Saudi Arabia

Expats, mainly coming from the Indian sub-continent, are finding themselves being exploited due to a lack of information over their rights.

London, UK (Pryce Warner International) July 7th, 2011 – Expats moving to Saudi Arabia for work are often not fully informed of the rights available to them, which frequently leads to employers exploiting their vulnerable position.

This problem is exacerbated by the immigration system whereby Expats take on a sponsor when emigrating. Though this system is designed to provide support and some basic rights for Expats, often the sponsor holds the power to have their sponsee deported.

In some cases this has led to Expats not being able to take legal action for fear they will be deported or not have their rights recognised by the Saudi Arabian justice system, which they feel prioritises the rights of local citizens.

One of the key issues facing Expats is a lack of information over their rights. Often they are not fully informed of their rights and have to rely on what little information they are given by their employer (often the sponsor). Due to language barriers Expats often have little way of properly investigating their rights themselves.

Many Expats also feel that it is not possible to pursue or afford legal action because, as foreigners, courts will naturally side with locals and with the threat of deportation hanging over their heads it is not worth the trouble.

Those working in domestic service and manual labour are often the worst exploited as they are the most vulnerable and know that they will be unable to support themselves if they are forced to return home, forcing them to cave to their employers demands.

Expats in Saudi Arabia are no calling for a more transparent system that makes their rights clearer and better known. Some are also planning collective action to ensure that their rights are not taken away and calling for reform of the sponsor system.

Rights Expats in Saudi Arabia are entitled to (pending contractual agreements):

• Prompt payment of their monthly salary as agreed upon in their employment contract
• That the sponsor will pay the cost of their residence permit on arrival, its renewal, exit/re-entry visas as well as final exit visa fees
• Fully paid vacation
• Their sponsor will bear the cost of the Expat’s health insurance
• Payment of End of Service Benefits at the end of the contract

David Harra, a Senior Market & Investment Analyst with Pryce Warner International Group, a financial services provider for Expats, commented: “Often Expats from first world countries coming to Saudi Arabia take their rights for granted as they are sponsored by a large company that they have an existing relationship with. It is easy to forget that the majority of Expats in Saudi Arabia are low-level workers in the service or construction industries and so are vulnerable to exploitation. However, it is encouraging to see that times are changing and hopefully the Saudi government will ensure that the rights of all Expats are upheld and not just those of Expats from wealthier nations.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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