A sharp drop in oil prices in the world affects a spa on the economy of the Kingdom of Saudi Arabia in the year 2020 and leads to a decrease in the salaries of workers
Sources within the Saudi government announced on Sunday new amendments to the wages and vacations of workers in the private sector because of the implications of the Corona virus, which included allowing companies to reduce salaries up to 40%, according to conditions.
According to a statement of his ministry, the Saudi Minister of Human Resources and Social Development, Ahmed Al-Rajhi, approved an explanatory note to Article 41 of the executive regulations of the labor system regarding the regulation of the contractual relationship between employees and employers, according to Al-Sharq Al-Awsat.
The newspaper says that a copy of the decision indicated the approval of the Ministry of Human Resources and Social Development on the explanatory memo of the Saudi labor system that includes allowing the employer to reduce the employees ’salaries 40 percent of the actual actual wage for a period of 6 months, in proportion to the hours of work and allowing the termination of employee contracts after 6 months. From the force majeure.
The regulation defines force majeure as the state taking, as it deems appropriate or based on what is recommended by a competent international organization, measures regarding a case or circumstance that requires reduced working hours or precautionary measures that limit the aggravation of the situation.
The regulation indicated that the application of its provisions does not prevent the employer from benefiting from the subsidy provided by the state to the private sector of any kind, such as helping to pay workers wages or exemption from government fees, stressing not to resort to termination of the employment contract, except after three conditions are met to consider the conditions within the description the majeure force.
The conditions are the passage of 6 months following the measures taken and the resulting precautionary or preventive measures, and the exhaustion of the application of the procedures related to the reduction of remuneration, annual leave and exceptional leave, in addition to proving that the establishment is affected by these conditions.
These developments come with the moves made by Saudi Arabia to deal with the Corona pandemic and consider it a force majeure in the contractual relationship in the Saudi labor market, as the current conditions enter into the concept of achieving force majeure with its continuation for a period of time and damage to establishments in the private sector.
The memo, which begins work soon after publication in the government’s official gazette, provided that the worker would receive his wages in the event of taking an annual leave within a period of 6 months.