COVID-19 and Labour Law: Saudi Arabia
Keywords:Covid-19, Labour Law, Temporary layoff, Remote work
Saudi Arabia labour law was devoid of preexistent tools suitable to face the COVID-19 emergency. The legislator promptly reacted to the crisis, issuing a Sr 120 billion (USD 35.2 billion) stimulus package, with Sr 70 billion reserved to the private sector.
The strategy moves on two fronts: provide liquidity to companies (and workers) and avoid mass dismissals. The legislator implements the former goal mainly via a postponement of taxes and fees. For the latter, it introduced a temporary layoff scheme, in some cases supported by a public allowance up to the 60% of the wage.
On top of this, the government implemented several social distancing rules and strongly promoted the smart working.
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