Coronavirus in Saudi Arabia

MOL Announces to Reduce Salary of Citizens & Saudi Expats for Next 6 months

Due to the Coronavirus pandemic the public and private sectors had to close their offices and workplaces and had to shift to working from home. But the main problem faced was that many private sectors jobs cannot be done from home. And the lock-down was causing a great loss to the economy of the country. Due to this problem, the government was forced to lift the complete lock-down and allow a time of day to work. For more information, read the article below.

What Action the Authorities took?

Due to the economic crisis the authorities had to lift the lock-down and allow the flow of work from 9:00 am to 5:00 pm. They also took some extreme measures to ensure that the health of the workers and precautions to avoid the spread of COVID-19.

What Guiding Measures did the Authorities gave?

The Saudi Ministry of Human Resource and Social Development has issued guidance on relations between workers (including Saudi expats) and private business owners during the corona virus pandemic. The measures taken by the Ministry is to reduce working hours and cut employees’ wages during the next six (6) months only,  while taking into account their daily or weekly hours in private businesses.

How much will the Wages Reduce?

According to the above statement, the wages of the citizens and Saudi expats would be reduced but they won’t be reduced by more than 40 percent of the whole salary. And as the reduction would be applied for six (6) months only, so after that business owners must return to paying full wages to their employees. However, the citizens and Saudi expats do not have any right to object this reduction as long as it does not exceed the agreed 40 percent.

What about the Citizens and Saudi expats Annual Leave?

According to this law, the private business owners have the right to approve the timings of their employees’ annual leave depending on their work conditions. It also allows the employers to give their employees their annual leave at the same time or alternately.  However, the wages will be paid at the rates before any reduction during their annual leave. Employees also have the right to seek an unpaid leave if the business owner approves.

Can the Employers Terminate the Employment Contracts of Saudi Expats in this Period?

No, the employers cannot terminate the employment contracts under the current situation before the six (6) months period is over. Although, they have been given the rights to use these measures are not exempt from state subsides granted to the help private sector companies crippled by the effect of the pandemic.

Even during this time of crisis, government had to lift the lock-down to keep the economy stable. For more information regarding these issues, visit our website. Stay safe. Stay tuned.

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