MOL allows 40 percent wages reduction in private sector; Article 41

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MOL allows 40 percent wages reduction in private sector; Article 41

The Saudi Ministry of Labour and Social Development has issued guidance on relations between workers and private business owners during the COVID-19 pandemic.

New Guidance:


1) Private businesses to reduce working hours and cut employees’ wages during the next 6 months only, while taking into account their daily or weekly working hours.

2) The wages shall not be reduced by more than 40 % of the total salary.

3) After 6 months, business owners must return to paying full wages to their employees.

4) Employees do not have the right to object the reduction as long as it does not exceed the agreed 40 %.

5) The law also allows business owners the right to approve the timings of their employees’ annual leave depending on work conditions.

6) It allows employers to give their employees their annual leave at the same time or alternately.

7) Wages during annual leave will be paid at the rate before any reduction.

8) Employees have the right to seek an unpaid leave if the business owner approves.

9) Employers given the right to use these measures are not exempt from state subsidies granted to help private sector companies crippled by the effects of the pandemic.
But they cannot terminate employment contracts under the current situation before the 6 months period is over.

It is also worth noting that the original news has been published and is available at Arab News, you can read and follow this news from its main source.

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