Coronavirus-related article removed from Labor Law in Saudi Arabia

This article was added to the executive regulations of the Labor Law through a ministerial order to deal with the unprecedented coronavirus pandemic situation

  
Image used for illustrative purpose. The view of high rises in King Abdullah Financial District in Riyadh.

Image used for illustrative purpose. The view of high rises in King Abdullah Financial District in Riyadh.

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RIYADH — Saudi Arabia’s Ministry of Human Resources and Social Development has stopped the implementation of article 41 of the Labor Law.

This article was added to the executive regulations of the Labor Law through a ministerial order to deal with the unprecedented coronavirus pandemic situation.

In order to help the private sector cope with the coronavirus-induced lockdowns, the article provided three options to owners of establishments to take advantage of the SANED unemployment insurance program after submitting names of 70 percent of their worker force.

The options included a cut in wages with reduced working hours or grant of paid annual leave or unpaid leave to workers and the temporary suspension of the labor contract until the end of the crisis.

 

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