Saudi firms get Oct 1 deadline for wage protection scheme

July 25, 2013
Riyadh, Jul 25: A wage protection program will become mandatory on Oct. 1 for companies employing 3,000 or more workers, according to the Labor Ministry.

Saudi and foreign private schools need to abide by the new rule irrespective of the number of employees on their payroll, said a senior official.

The companies and schools must submit complete details of wages paid through banks to the ministry via its website (emol.gov.sa), said Deputy Labor Minister Abdullah Abuthnain.

wage“The program aims at ensuring that all Saudi and expat workers at private firms received their salaries as per their contracts.”

The ministry will compare the wage payment list submitted by companies with the data they already have, said the official.

“The move aims to streamline the Kingdom’s labor market, removing discrepancies and creating a secure and stable atmosphere for workers,” he said.

“This will help reduce labor issues and increase workers’ productivity. It will also help us uncover fake firms, fight cover-up businesses and get rid of excess labor in the market,” he said.

Speaking about violators of mid-day work ban during summer from noon to 3 p.m., he said such firms would be fined not less than SR3,000 and not more than SR10,000.

He said the firm could also face the threat of permanent shutdown or a 30-day closure, depending on the extent of the violation.

There was cautious optimism among citizens and expats about the new wage protection program.

Ziyad Al-Rahmah, a member of the National Committee for International Schools at the Council of Saudi Chambers, said the program might place extra burden on private firms.

P. K. Ibrahim, assistant manager, trade finance center at Riyad Bank’s corporate office in the Western Region, said the payment of salaries through banks would help both companies and workers as it would enable them to get bank loans easily.

He said banks would be obliged to open accounts for workers if the ministry insists on distributing salaries through them.

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Agencies
June 9,2020

Dubai, Jun 9: Dubai's Emirates airline has begun laying off employees to reduce cost and save cash as the carrier looks to rightsize its workforce.

"We at Emirates have been doing everything possible to retain the talented people that make up our workforce for as long as we can. However, given the significant impact that the pandemic has had on our business, we simply cannot sustain excess resources and have to rightsize our workforce in line with our reduced operations. After reviewing all scenarios and options, we deeply regret that we have to let some of our people go," the spokesperson said in the statement.

Citing sources, Reuters and Bloomberg earlier reported that a majority of those being made redundant are cabin crew workers as well as a minority of its engineers and pilots, including those flew the Airbus A380.

"This was a very difficult decision and not one that we took lightly. The company is doing everything possible to protect the workforce wherever we can. Where we are forced to take tough decisions we will treat people with fairness and respect. We will work with impacted employees to provide them with all possible support," said the statement.

The spokesperson, however, didn't disclose how many employees are being made redundant in this latest round of rightsizing the workforce.

Emirates on Sunday confirmed that it extended the period of reduced pay for its staff for another three months till September. It had previously reduced basic wages by 25 to 50 per cent for three months from April, with junior employees exempted.

The airline had employed around 60,000 people at the end of its 2019-20 financial year.

Saj Ahmad, chief analyst at StrategicAero Research, said the announced job cuts at Emirates will likely not be the last given the unprecedented damage that Covid-19 has had not just on air travel, but on the entire aviation industry as a whole.

"Emirates' massive international network means that job reductions were always a last resort option as the company staves off cash burn and expenses at a time when revenues are dried up. While Emirates SkyCargo is enjoying a resurgence in activities, the reality is that this income will never offset the lost money from passenger operations," he added.

"Whilst some salary reduction schemes have prevented bigger job cuts for now, the absence of a cure or medicinal suppressant of Covid-19 means that air travel is unlikely to even reach pre-9/11 levels within 3-5 years, let alone pre-Covid-19 levels in that same time period. For that reason, Emirates' reduction in headcount is necessary to stay competitive, agile and be ready for when air travel can resume with a degree of normalcy that we have been accustomed to for decades," said Ahmad.

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News Network
April 15,2020

Dubai, Apr 15: Saudi Arabia reported 493 new cases of coronavirus, bringing the total number of infections in the country to 5869, the Ministry of Health announced on Wednesday.

According to the ministry of health, the number of recoveries today are 42 cases, making total of recoveries in the kingdom 931. And 71 critical cases in intensive care.

The ministry also confirmed 6 deaths bringing the total number of deaths in the kingdom to 79.

Saudi Arabia imposed a 24-hour curfew and lockdown on the cities of Riyadh, Tabuk, Dammam, Dhahran and Hofuf and throughout the governorates of Jeddah, Taif, Qatif and Khobar. This week the curfew was extended until further notice.

Overall, Saudi Arabia has reported one of the lowest rates of infection in the region, with around 5,000 cases in a population of over 30 million. Mecca was one of the first Saudi cities to be placed under a full-day curfew, and authorities took unprecedented precautions, suspending religious tourism in February and closing mosques across the country in March.

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Agencies
June 22,2020

Riyadh, Jun 22: The Ministry of Municipal and Rural Affairs (MMRA) in Saudi Arabia has announced the continuation of the ban on providing Shisha (hubble-bubble), and the closure of children's play areas in restaurants as a precautionary measure for protecting the health of citizens and residents from the novel coronavirus COVID-19 infection.

The new stage, in which the Kingdom is beginning to coexist with the virus, focuses on the concept of "social distancing" that has emerged since the start of the coronavirus crisis throughout the world,

It stipulates leaving at least 2 meters between one person and the other in public places to prevent the transmission of infection, in addition to covering the mouth and nose by wearing a facemask.

It also specifies complying with the preventive protocols in workplaces, stores, shops, mosques and tourist attractions, with human gatherings not to exceed 50 people, as a maximum.

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