Saudi Riyal
Illustrative image. Image Credit: Bloomberg file

Cairo: An Indonesian domestic worker has been awarded more than SR100,000 in overdue wages through a government-mediated settlement to a dispute with her employer in Saudi Arabia.

The deal was reached by a dispute-settlement committee affiliated to the Saudi Ministry of Human Resources in the kingdom’s Northern Borders region.

The house helper at the centre of the dispute had worked in the kingdom for nearly 17 years, according to media reports.

She was able to retrieve SR100,200 in overdue wages through the deal that included an agreement on an amicable end to her employment contract and issuance of a final exit visa to return to her home country.

Last February, the kingdom’s Ministry of Human Resources said around 73 per cent of employment-related disputes in Saudi Arabia were settled out of court in 2022.

An amicable settlement system, dubbed “Wedi” has also helped shorten the duration of handling a dispute lawsuit from 40 days to five working days.

A mechanism has been introduced seeking to reach friendly settlements to disputes, which may break out between the employee and the employer, out of keenness on ensuring stable relationship between the contractual parties and salubrious working settings, the ministry said.

Efforts to reach an amicable settlement marks the first phase in handling suits on labour disputes during which mediation endeavours are made to bring views of the parties involved closer in a bid to reach a friendly solution acceptable to both sides.

If not, the suit is referred to a labour court within the 21 days of the first settlement session.

In 2018, new labour courts were introduced in Saudi Arabia to ensure fast-track litigation and delivery of justice as part of massive reforms in the country.

Their jurisdiction includes ruling on disputes related to employment contracts, wages, labour rights, injuries, compensation and social insurance claims.