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The Ministry of Human Resources and Social Development in the Kingdom of Saudi Arabia has begun to implement a new article of the Labor Law to reduce the wages of workers in the private sector by up to 40% due to the Corona virus.
The explanatory note of the new Article No. 41, which the ministry published on its website, said that its objective is to regulate the contractual relationship between workers and employers in exceptional circumstances and force majeure.
He added that this article coincided with events in the Kingdom and the world in general and the accompanying preventive and precautionary measures to face an exceptional event described as force majeure, in reference to the Corona virus.
The new article allowed the employer to decide to reduce the worker’s wages within a period of 6 months after taking special measures regarding exceptional circumstances, in proportion to the actual daily or weekly working hours, provided the reduction does not exceed 40%.
According to the ministry, the worker cannot oppose the application of the salary reduction decision.
The article allowed business owners to terminate the employment contract for workers after a period of 6 months after taking action after fulfilling 3 basic conditions, namely:
1- A period of 6 months has elapsed since the measures taken in a circumstance or case that result in precautionary or preventive measures and that require reducing or stopping working hours, and in return this circumstance or situation persists.
2- Exhaust the application of all the procedures related to the reduction of wages, annual vacations and all or some exceptional vacations.
3- It is proven that employers did not benefit from any state benefit, regardless of the type of benefit used to satisfy this circumstance or situation.
The new article gives the employer the right to grant an annual or exceptional leave to the worker at the time specified by him.
The article gave the worker the right to receive the full salary during the annual leave period, and its approval was stipulated first before obtaining an exceptional leave from the employer.
Saudi Arabia has taken measures to limit the spread of the Corona virus, including a full curfew in some cities, and has issued permits to workers in the country and imposed permits to workers in the private sector.
The Ministry of Human Resources and Social Development in Saudi Arabia said that Article 41 added to the executive regulations of the labor system allows the worker to be granted leave with pay for a certain period, then apply the other option to reduce the salary by no more than 40 %, then, if approved, you can be granted leave without pay.
In response to the most prominent questions about the article, the ministry added that the facility can organize what it sees about those options according to job requirements and according to their needs.
The ministry said that the facility that was not affected by current conditions does not have the right to invoke the provisions of article 41 in any action it takes against its workers.
He explained that the application of Article 41 continues during the 6-month period from the declaration of the state to take measures regarding a situation or circumstance that requires a reduction in hours of work or precautionary measures that limit the aggravation of that situation. or circumstance, unless the state announces the suspension of those procedures or measures.
The most outstanding queries on the provisions of article (41) based on what is indicated in the explanatory note. pic.twitter.com/taViN1mXux
– Ministry of Human Resources and Social Development (@Mhrsd_sa) May 4, 2020
The decision to regulate the contractual relationship … by Bassam Mharan on Scribd
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