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Details of Article (41) of the Executive Regulations of the Labor Law

Details of Article (41) of the Executive Regulations of the Labor Law

The Ministry of Human Resources and Social Development revealed the answers to some common questions about the provisions of Article (41) of the Executive Regulations of the Labor System, and during an infographic published by the Ministry through its Twitter account, it explained the most important things surrounding the implementation of Article (41) of the Regulations. Executive Committee of the Labor Law, which it recently added to the regulations regulating the contractual relationship between the worker and the employer.

The questions and answers were as follows:

This decision applies to all those covered by the labor system, which are: the categories stipulated in Article Five of the labor system, with the exception of categories excluded in Article Seven of the system or excluded by an order issued by the regulatory authority.

Does this decision include all establishments?

This decision includes all workers in establishments and sectors affected by the precautionary measures for the Coronavirus, as stipulated in “Article Five” of the Labor Law, and excludes any category or sector that has been excluded by an order issued by the regulatory authority. The facility’s acceptance of compensation from the unemployment insurance system is considered “SANED” is a presumption that the facility has been harmed by this crisis

Is the approval of both parties to the relationship required to implement the ministerial decision related to Article (41) of the executive regulations of the labor system?

Yes, the approval of both parties to the relationship is required to apply the procedures stipulated in the decision

What is meant by the text in the decision “what is included in the description of force majeure”?

It means any situation or circumstance regarding which the state has taken measures that require reducing working hours or precautionary measures that limit the aggravation of that situation or circumstance, which is included in the description of force majeure “which prevents the performance of the obligations stipulated in the labor system, its executive regulations, or the employment contract.”

When does the decision begin to be implemented and what is the maximum period of reduction that can be agreed upon?

From the date of its publication in the Official Gazette or the Ministry’s website, it will not be effective when the cause of force majeure disappears, or one month after the start of the announcement of the precautionary measures.

Does the decision include Saudis and expatriates?

This decision includes all workers in establishments and sectors affected by the precautionary measures for the Coronavirus, as stipulated in “Article Five of the Labor Law, and excludes any category or sector that has been excluded by an order issued by the regulatory authority.”

Does the employer have the right to force the worker to take one of the options: unpaid leave, leave of absence, or a reduction in wages in proportion to the actual working hours?

The decision requires “consent of both parties to the relationship” to take any of the stipulated actions

Is it permissible for the establishment to give the worker unpaid leave without his consent?

The decision required that there be agreement between the worker and the employer

What is meant by government support and state aid?

Any aid from the state that contributed to alleviating the damage to the employer by compensating the wages of any of his employees to confront the precautionary measures taken by the state.

The wording of the decision speaks about the employer’s agreement with the worker, which means requiring the worker’s consent, and what if the worker does not agree?

The facility that has benefited from state aid to confront this situation does not have the right to force the worker to choose any of the options. If the facility subsequently resorts to terminating the contractual relationship, it is considered an unlawful termination. • If 70% of the Saudis are transferred to Saned, is the thirty percent entitled to the thirty percent? The remaining ones must be agreed upon by the employer to reduce the wages of Saudis and non-Saudis, knowing that the previous decision was to commit to paying the full 30% wage and those not included.

If the establishment benefits from a subsidy for a Saudi, does it have the right to terminate the contract of a non-Saudi?

What is meant by the establishment not receiving aid from the state to confront this situation is compensation to pay the wages of Saudis, and therefore this restriction does not extend to expatriate workers, provided that termination is not resorted to before negotiating with the expatriate worker one of the procedures mentioned in Article (41) of the executive regulations of the labor system.

When is termination of a contract lawful?

The Labor Law specifies the cases in which the worker and the employer may terminate the contractual relationship.

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