Previously, MOL Announces Changes in Salary & Unpaid Leave on 4-May-2020. The Saudi Ministry of Human Resources and Social Development has warns that it is not permissible for private sector companies to reduce the worker’s wages without reducing his working hours.
HR Ministry advice employers to no salary cut without reduce working hours
Salary reduction is depending on the working hours reduced. This means the range of reduction between 1-40 percentage but depending on working hours reduced. Employers can terminate workers contract but only for workers with reduced hours or exception leaves which applies below conditions as per Article 41.
- Reducing the wage by no more than 40 percent, and full or part-time leave and exceptional leave.
- Period of the six months shall be completed as reduced hours.
- The employer must not take benefits of the Article 41 and terminate the employee contract.