Saudi Arabia announces new fines for companies violating workers rights amid pandemic

New penalties are introduced and will be enforced on companies that breach a royal mandate to support Saudi laborers in the private sector that are hit by the aftermaths of the coronavirus pandemic, the Arab News reported.

The Kingdom has recorded 243,238 Covid-19 positive cases, deaths around 2,370, and 187,622 recovered as per Worldometer data. The virus has impacted the nation’s healthcare system and social-economic life as well.

In April, Saudi Arabia had amended its labor laws as the growing threat of employment losses increased due to the aftermath of the coronavirus pandemic. It greatly impacted the nation’s economy. The law will help in keeping a check on employers and will limit them from laying-off workers during the pandemic.

The General Organization for Social Insurance (GOSI) has passed the new fines related to the worker’s rights and the unemployment insurance law utilizing the joblessness insurance program. 

The law presently specifies that an employer and employee can mutually consent to reduce pay for the half-year, but only when the working hours of the employee are also decreased.

According to the Arab News, the companies that will violate the new orders will be fined for around 9,752 and 48,760 riyals (Dh9, 550 and Dh47, 750), stated the Kingdom’s Ministry of Human Resources and Social Development. The GOSI also expressed that the new penalties will rely upon the number of workers whose rights were violated.

Article Credit: The National/ The Arab News