Saudi Arabia: The Private Sector is Not Entitled to Terminate Employees Contracts Due to the Coronavirus Crisis

The Saudi Ministry of Human Resources, which is responsible for overseeing labor and workers affairs, confirmed that “the private sector is not entitled to terminate employee contracts due to the “force majeure” that the country is going through due to the Coronavirus outbreak.

The Saudi Ministry of Human Resources and Social Development said in a statement that what the country is going through as a precautionary health measure to limit the outbreak of the Coronavirus is not part of what is stipulated in Article (74) of the labor system related to terminating the work contract in case of “force majeure”.

The statement added that the termination of employee contracts is considered irregular and has repercussions and penalties for establishments, noting that the state has taken many supportive decisions of the private sector to help preserve their employees during this difficult period as the whole world is affected by the emerging Coronavirus.

 

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