In the previous article, we discussed the measures proposed by the Ministry of Human Resources and Social Development during the coronavirus pandemic and its effects on the labor market and employment in general. It was followed by a memorandum issued by the ministry clarifying mechanisms and conditions for the implementation of those measures to face the challenges posed by the crisis and mitigate the likely damages. In today’s article, we will discuss those mechanisms. Article No. 41 has been added to the executive regulations of the labor code, which states that in the event of the government taking measures that require a reduction in working hours, under force majeure, an employer can agree with his employee to implement those steps for the following six months. The employer needs to adjust the reduction of wages to match the employee’s working hours. The memorandum stated that this reduction should not exceed 40 percent of the actual wage, and it is applicable during the next six months. It also added that an employee is not entitled to refuse the reduction in wages as long as it does not exceed the indicated limit. It should be noted that an employer cannot take advantage of the reduced working hours (that is, six hours) in Ramadan and apply salary cuts. The reduced working hours in Ramadan are considered actual working hours. Any such exceptional changes to a contract must be implemented within six months of the state taking any measures that cause a reduction in working hours, or any other precautionary action to limit the damage caused by the force majeure, in this case, the pandemic. An employee may also be given paid leave, which will be deducted from their annual leave. The employee is not entitled to refrain from consuming the balance of his accrued leaves if the employer decides to do so — or employees may take unpaid leave, with the employer’s consent, for a length of time to be agreed with the employer. If the unpaid leave exceeds 20 days, the employment contract will be suspended, unless the parties agree otherwise. For fixed-term contracts, the employer can extend the contract for a period that matches the suspension, unless agreed otherwise. The law gives both parties a reasonable space to choose what suits their circumstances more. For termination of a contract, there are only three main conditions that must be met to allow the employer to terminate the work contract; if the six months have passed (that is, only after this extraordinary situation has passed), if all or some of the previous procedures were applied and if it is proven that the employer did not benefit from any subsidy from the government, regardless of the type of this benefit. On the other hand, an employee cannot terminate the contract unless two main conditions are met: If the six months have passed or all or some of these measures were applied. Violators of the law will face a fine of SR10,000 ($2,663) and this penalty can be multiplied to match the number of employees affected by the violations. The ministry may withdraw these fines if employers and companies undo their actions. Dimah Talal Alsharif is a Saudi legal consultant, head of the health law department at the law firm of Majed Garoub and a member of the International Association of Lawyers. Twitter: @dimah_alsharif