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 protecting their rights. Efforts to finalise such an agreement have been underway for a decade.

The agreement was signed by Rajendra Singh Bhandari, minister for Labour, Employment and Social Security of Nepal, and Saudi counterpart Ahmad bin Sulaiman AlRajhi, who has led the Ministry of Human Resources since 2018. With this deal, Nepal now has labour agreements with 13 countries.

​​Earlier, in the last second week of June, former Nepali minister Sharat Singh Bhandari and Saudi Arabia’s Deputy Minister for International Affairs, Tariq Al-Hamad, had agreed to postpone the domestic worker agreement and proceed with a general labour agreement. The Nepali ministry has said it will carry out further groundwork for the domestic worker agreement.

The agreement is expected to provide more opportunities for Nepali workers in Saudi Arabia, prioritise transparent recruitment to prevent human trafficking, and ensure respect for both workers’ and employers’ rights. Former Nepali ambassador to Saudi Arabia, Udayaraj Pandey, said the deal formally opens a channel to address worker rights, noting previous delays due to differences over domestic worker protections.

The ministry said the agreement follows International Labour Organisation standards, securing wages under Saudi labour law, ending duplicate contracts, controlling excessive recruitment costs, preventing fraud by manpower companies, and ensuring access to justice for workers.

Former secretary and labour administration expert Purna Chandra Bhattarai said both countries are committed to strengthening labour relations. He added that the agreement provides a legal basis to protect workers and simplifies management of labour disputes.

The deal recognises contracts made in Nepal as valid in Saudi Arabia, guaranteeing agreed wages and benefits. Nepali unskilled workers will receive at least 1,000 riyals in salary and 300 riyals for meals.

To oversee implementation, a joint technical committee of at least six officials from both countries will monitor and evaluate the agreement. Pandey stressed the need for this committee to be active to address gaps and ensure effective enforcement.

According to the labour ministry, 684 Nepali workers died in the past two fiscal years, often leaving families without due compensation.

Vice-president of the Nepal Association of Foreign Employment Agencies, Baikuntha Poudel, highlighted the “exit permit” as a major problem, restricting workers from returning home if companies withhold it. Poudel emphasised the importance of ensuring the agreement is implemented effectively rather than remaining only on paper.