A Saudi ministerial decision issued on Monday allows companies in the private sector to reduce salaries by 40 percent

Iran Press/Middle East: The decision is made by Saudi Ministry of Human Resources and Social Development to regulate the labour contract in the current period, allows employers to reduce the employees salaries by 40 percent of the actual effective wage for a period of 6 months, in proportion to the hours of work and allowing the termination of employee contract after 6 months of the COVID-19 circumstances.

However, according to the directive, the three conditions that are a prerequisite to terminate any employee include: the passing of six months since a salary cut has come into effect, the reduction of pay, annual leave and exceptional leave have all been used, and a company proves that it is facing financial hardships due to circumstances surrounding the outbreak.

Saudi Arabia is reported to have 31,938 coronavirus case.

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