Temporary law permitting ‘Salary Cuts’ in Private Sector – ARAB TIMES
KUWAIT CITY, Jun 1: The government has revised its plan to amend the Labor Law in the Private Sector No. 6/2010 to allow companies whose business activities have been affected by Corona virus crisis to agree with workers to reduce their salaries during the crisis.
The government has referred to the Parliamentary Finance Committee a new draft law to address the effects of Corona crisis on the labor market No. 2020/86, which will be in effect during the period of precautionary measures taken by the state and its provisions will end with the end of measures taken to confront the Corona virus pandemic.
Article 1: Of the draft law allows the minister in charge to approve with the employers because of the precautionary measures and measures taken by the state to prevent corona virus pandemic has affected the activity totally or partially stopped.
The minimum wage during the period will be approved by the Council of Ministers as a period of stopping activity.
It also permits employers to agree with the employees that they have to reduce the wage during the period of business activity by a maximum of 50 percent during the crisis, provided that the actual working hours are taken into consideration for the paid wage, and without prejudice to the minimum wage, all employment dues are calculated based on the wage due to them before reducing it within the service period, and the determined support is given as well as the unemployment allowance for those who address their plans in order to ensure protection for national employment.
Article 2: stipulated that the provisions of the first article of this law shall apply during the period of the precautionary measures that the state takes to prevent the pandemic of Corona virus.
It does not work with any provision that violates the provisions of this law, and the provisions of this law will end with the end of the precautionary measures taken by the state.
Article 3: The period determined by the Council of Ministers as a period of stopping activity is not counted in application of the provisions of Article 1 within the procedural dates for cases brought by workers in accordance with the provisions of this law.
In its draft law the government explained that the law aims to restore balance in work relations in the private sector under the current circumstances taking into account the nature of the current exceptional circumstance so that it is temporary in nature with this circumstance and to fill some legislative deficiency in the laws related to dealing with the effects of this pandemic.