India and Saudi Arabia have signed an agreement on Labour
Cooperation for Domestic Service Workers Recruitment. The agreement
was signed in New Delhi on 02.01.2014 by Minister for Overseas
Indian Affairs Sh. Vayalar Ravi and Minister for Labour of Kingdom
of Saudi Arabia Mr. Adel Bin Mohammed Fakeih.
Salient Features of the Agreement are:
It aims to protect the right of both the employers and domestic
service workers and regulate the contractual relation between
It endeavors to control recruitment costs in both countries.
It ensures recruitment of domestic sector workers directly or
through registered recruitment agencies.
It ensures authenticity and implementation of employment
contract between the employer and the domestic workers.
It ensures legal measures against recruitment agencies in
violation of the laws of either country.
It ensures that recruitment agencies and the employer shall not
charge or deduct from the salary of the domestic worker any cost
attendant to his/ her recruitment and deployment.
It ensures that recruitment agencies and the employer do not
impose any kind of unauthorized salary deduction.
It works towards fostering a harmonious relationship between the
employer and the domestic workers.
It facilitates the opening by the employer of a bank account
under the name of the domestic sector workers.
It endeavors to establish a mechanism to provide 24 hours
assistance to the domestic sector workers.
It facilitates the issuance of exit visas for the repatriation
of domestic sector workers upon contract completion or in any
emergency situation or as the need arises.
A standard employment contract would be finalized that would
provide minimum wage, working hours, paid holidays and dispute
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On 31 December 2015 the President gave his assent to certain amendments to the Payment of Bonus Act, 1965. The amendments have increased the wage threshold for determining applicability of the Act from INR 10,000 to INR 21,000 per month.
The Payment of Bonus Act, 1965 provides for the payment of statutory bonus to eligible employees. The bonus payable is to be determined on the basis of profits or on the basis of production or productivity of the establishment.
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