KUALA LUMPUR - Nepal and Saudi Arabia signed a labour agreement in Riyadh on Sunday aimed at making the recruitment of Nepali workers for Saudi Arabia more transparent and strengthening the protection of their rights, following nearly a decade of negotiations.

The agreement was signed by Nepal’s Minister for Labour, Employment and Social Security Rajendra Singh Bhandari and Saudi Minister of Human Resources Ahmad bin Sulaiman AlRajhi, who has led the ministry since 2018, as reported by Asia News Network.

With the latest deal, Nepal now has labour agreements with 13 countries.

In the second half of June, former Nepali labour minister Sharat Singh Bhandari and Saudi Arabia’s Deputy Minister for International Affairs Tariq Al-Hamad agreed to postpone a separate domestic worker agreement and proceed instead with a general labour accord.

Nepal’s labour ministry said further groundwork would be carried out before finalising an agreement specifically covering domestic workers.

The agreement is expected to expand employment opportunities for Nepali workers in Saudi Arabia, prioritise transparent recruitment processes to prevent human trafficking, and ensure respect for the rights of both workers and employers.

Former Nepali ambassador to Saudi Arabia Udayaraj Pandey said the deal formally opens a channel to address labour rights issues, noting that negotiations had previously stalled over differences related to protections for domestic workers.

According to the labour ministry, the agreement follows International Labour Organisation standards, including securing wages under Saudi labour law, eliminating duplicate contracts, regulating excessive recruitment fees, preventing fraud by manpower agencies and ensuring access to justice for workers.

Former labour secretary and administration expert Purna Chandra Bhattarai said both countries are committed to strengthening labour relations, adding that the agreement provides a legal framework to protect workers and simplify the handling of labour disputes.

Under the deal, contracts signed in Nepal will be recognised as valid in Saudi Arabia, guaranteeing agreed wages and benefits.

Nepali unskilled workers will receive a minimum monthly salary of 1,000 riyals, along with 300 riyals allocated for meals.

To oversee implementation, a joint technical committee comprising at least six officials from both countries will monitor and evaluate the agreement.

Pandey stressed the importance of the committee’s active role in addressing gaps and ensuring effective enforcement.

Labour ministry data show that 684 Nepali workers died over the past two fiscal years, often leaving families without due compensation.

Baikuntha Poudel, vice-president of the Nepal Association of Foreign Employment Agencies, highlighted the exit permit system as a major challenge, saying it restricts workers from returning home if employers withhold approval.

He emphasised that the success of the agreement would depend on its effective implementation, rather than remaining only on paper.