Kuwait rejects India’s bank guarantee measure for recruiting domestic helpers

December 5, 20140

The India government has backed down on a move to implement a KD720 ($2450) bank guarantee for Kuwaiti employers of Indian workers. Kuwait had threatened to ban Indian expatriates moving to the country in response to the guarantee payment, announced in September, during high level diplomatic talks with the Indian ambassador to Kuwait.

Source : ArabianBusiness (04.01.2015)

Kuwait has rejected India’s domestic helpers’ bank guarantee measure, which requires an employer in the Gulf nation to deposit an amount of 2,500 dollars (9,182 dinars) as bank guarantee to hire an Indian domestic help. According to Gulf News, India said that the bank guarantee would be used “for the repatriation of the housemaid and other unpaid expenses like salary, medical expenses, in case the employer fails to pay the same as per the terms of the agreement.”

India said that the bank guarantee needed to be submitted in original to the Embassy of India.

However, Kuwaitis have refused to comply by the new Indian conditions with some lawmakers arguing that the bank guarantee is a violation of the laws and norms.

Meanwhile, reports have emerged that Kuwait might consider putting a temporary halt to recruitment of Indian helpers in response to the bank guarantee decision.

Source : Business Standard


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