MOL Announces Changes in Salary & Unpaid Leave

Previously, Ministry of Labor Announces Salary Deduction and Force Unpaid Leave for Expats on April 6, 2020 due to the Covid-19 Crisis. The ministry introduced Article 41 in Saudi Labor Law according to which employers were allowed to deduct salaries and force employees on unpaid/annual leave. Now the Ministry of Human Resources and Social Development has issued some further guidance on the implementation of Article 41.

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Is Deduction Allowed On Working 8 Hours?

The salary will be reduced in accordance with the working hours. If there is no reduction in the working hours from the employer, he is not allowed to deduct the salary of his workers.

How much will the Wages Deduction?

There is no limit to the reduction of hours of work, and the maximum limit for reduction of wages is 40%.

How long the wages can be deducted?

The employer is allowed to deduct salaries of his employees for a period of 6 months starting from April 2020. Employers must return to paying full wages to their employees after 6 months.

Can Employers force Annual or Unpaid Leave?

Article 41 of Saudi Labor Law also allows employers to dictate the timings of their employees annual leave depending upon the work need during the 6 months.

  • Employers are allowed to give their employees annual leave.
  • Employees are also allowed to request unpaid leave if the employers approve.

Can Employers Terminate the Employees Contract?

No, during the next 6 months starting from April 06, 2020, the employer is not allowed to terminate the employment contracts of their workers.

Is this News Rumor or Fake?

No, below is the Official Tweet from Ministry of Human Resources and Social Development.