THE SAUDI INITIATIVE FOR MITIGATING COVID-19 IMPACT: ARTICLE 41
An update, Article (41), has been added to the Executive Regulations of Labor Law as part of the numerous initiatives which the Saudi government has announced to provide business continuity in response to COVID-19. The update provides legal options for employees and employers to provide flexibility in employment contracts as preventative measures against redundancy or company closure.
Agreements can include a reduction in working hours and salary, utilization of annual vacation balance and using exceptional leave mechanism. These options can only be exercised if there is mutual agreement between both the employee and the employer.
These options can be exercised within six months of the beginning of the Saudi government announcement of precautionary measures.
Benefits for Employees
Maintaining employee contract and the benefits that are provided with the contract to ensure the employee has job security during COVID-19. The employee also has the option to maintain their contract or alter it in agreement with the employer, in implementing the options mentioned above.
Benefits for Employers
The employer has several options that can be agreed upon with employees at the time of the implementation and can benefit with maintaining continuity of the business and easing payroll expense pressures.
Entrepreneurs can benefit from the temporary access of expat workers through the Ajeer portal.
Compliance is essential for any employers wishing to avail this regulatory initiative and taking legal advice is advised before making any decisions.
KSA
Moon tower 3rd Floor
7586 King Fahd road, Riyadh
Phone: +966 11 411 1127
UAE
Office 3601, JBC 1,
Cluster G, JLT,
Dubai
Phone: +971 44 508 208
Canada
1 Yonge Street, Suite 1801
Toronto, Ontario
Tel. +1 416 214 6888
Kuwait
Osama Building, Office 2,
AL-Qibla Block 11,
Fahed AL- Salem Street
India
No. 500 Hegde Nagar
Main road, Dr. Shivarama
karanth Nagar,
Bangalore 560077.
Phone: +91 804 394 4873
Egypt
ResCo-Work08, Namaa
Building, 5th Floor,
Emtedad Ramses,
6th district, Nasr City,
Cairo
- KSA
-
Moon tower 3rd Floor
7586 King Fahd road, Riyadh
Phone: +966 11 411 1127
- UAE
-
Office 3601, JBC 1,
Cluster G, JLT, Dubai
Phone: +971 44 508 208
- Kuwait
-
Osama Building, Office 2,
AL-Qibla Block 11,
Fahed AL- Salem Street
- Canada
-
1 Yonge Street, Suite 1801
Toronto, Ontario
Tel. +1 416 214 6888
- India
-
No.500 Hegde Nagar Main road, Dr. shivarama karanth Nagar,
Bangalore 560077.
Phone: +91 804 394 4873
India
Phone: +966 11 411 1127
E-mail: [email protected]
India
Phone: +966 11 411 1127
E-mail: [email protected]
India
Phone: +966 11 411 1127
E-mail: [email protected]
India
Phone: +966 11 411 1127
E-mail: [email protected]
India
Phone: +966 11 411 1127
E-mail: [email protected]
India
Phone: +966 11 411 1127
E-mail: [email protected]