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Private sector employers in Saudi now allowed to cut salaries, working hours

Saudi Arabia has allowed employers in the private sector to cut the wages and working hours of their employees, Arab News reported.
According to the Ministry of Human Resources and Social Development, companies crippled by coronavirus disease (COVID-19) hav been given the green light to do such actions, but only with the consent of the employees, and the wages should reflect the number of hours worked.
However, to alleviate fears that such a decision can lead employers to exploit workers, the ministry said that employees can report violation through its website, channels, and social media platforms.
READ ALSO: UAE issues decree allowing private firms to reevaluate employees’ jobs, cut salaries and grant unpaid leaves
The ministry added that companies that have benefitted from state subsidies created to compensate workers may not terminate the contracts of their employees, but the employees can. This is to protect workers from dismissal or loss of contract benefits amid COVID-19. It also noted that it can mitigate the economic effects of the disease and protect the interests of all parties concerned.
“The ministerial decision aims to limit any attempt to tamper with people’s rights as employees, and to define the limits that both parties must agree on first, while also reflecting the reality,” Al-Sharif told Arab News.

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