Posted by : Aahil Shaik Tuesday, April 7, 2020

Ministry of Human Resources issues a decision to allow Employers to cut Wages, Hours of Woerkers to confront Coronavirus

The Ministry of Human Resources and Social Development in Saudi Arabia has issued a decision to regulate the contractual relationship between workers and employers, As part of its role to provide support for the efforts of the Kingdom of Saudi Arabia’s government to control the implications of the new novel Coronavirus. The decision was issued before the implementation of 24 hours curfew in various cities and governorates of the Kingdom.

According to the decision, private sector companies whose businesses have been paralyses by Coronavirus have been asked to cut  the employees wages and working hours with the consent of workers.

- Reduce the number of working hours in accordance with the number of actual working hours. See Also : King Salman orders to bear 60% of Salares of Private sector Saudi Employees

- Grant the worker a leave of absence calculated from his due annual leave days, or to grant the worker an exceptional leave, according to Article (116) of the Labour Law.

- The termination of worker contract is not legal once it became evident that the employer has benefited from any government subsidy to deal with this crisis situation. In addition, the worker will have the right to terminate his or her work contract. Read : Jawazat extended iqamas for 3 months 

- The Ministry also eased fears among the private sector workers including Saudis and Expats, that immoral employers could use the Covid-19 crisis to use their workers. The aim of the decision is to not allow any attempt to tamper with the rights of employees but it allow both parties must agree first, while dealing with it. Workers can report any violation through the Ministry's website or social media channels said the Ministry.

- A temporary benefit from the services of off-labor-market expatriates through the "Ajeer" portal as an alternative instead of recruiting from abroad, as the Ministry aims through this decision to protect workers during such circumstances from being terminated or losing their contractual benefits. The portal will soon offer the businesses to publish names of their excess workers.

HR Ministry issues a decision to Regulate Contractual Relationship between Employees and Employers

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