Amidst the COVID-19 pandemic, the Saudi Ministry of Labour and Social Development issued guidelines regarding the relations of both workers and private business owners.
The new guidelines will allow private businesses to reduce their working hours as well as cuts on the wages of their employees throughout the next six months, taking into consideration their daily and weekly work hours.
With that being said, the wages will not be reduced for more than 40% of their entire salary. After six months, business owners will then return to paying the full wages of their workers.
This new guideline gives no right to workers to object to the deduction of their wages as long as the 40 percent bracket is not exceeded.
Additionally, business owners will have the right to approve the timings of their worker’s annual leave as per their work conditions. Annual leaves can also be given one time or alternatively. As for their wages during their annual leave, it must be paid at the rate before the new deduction. If ever the business owner approves of their leave, a worker has the authority to seek unpaid leave if there are any.
Given all the advantages, employers are still entitled to pay the state subsidies that will further provide help to private companies greatly affected by the COVID-19 pandemic.
Moreover, termination of employment contracts is considered illegal throughout the six months.