SAUDI ARABIA

Coronavirus-related article removed from Labor Law

January 13, 2021



Saudi Gazette report

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.


January 13, 2021
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