‘Force Majeure’ Paves Way for Salary Cuts in Saudi Arabia

Job seekers stand in line to talk with a recruiter at a booth at a job fair in Riyadh, January 29, 2012. REUTERS/Fahad Shadeed
Job seekers stand in line to talk with a recruiter at a booth at a job fair in Riyadh, January 29, 2012. REUTERS/Fahad Shadeed
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‘Force Majeure’ Paves Way for Salary Cuts in Saudi Arabia

Job seekers stand in line to talk with a recruiter at a booth at a job fair in Riyadh, January 29, 2012. REUTERS/Fahad Shadeed
Job seekers stand in line to talk with a recruiter at a booth at a job fair in Riyadh, January 29, 2012. REUTERS/Fahad Shadeed

A ministerial decision was issued in Saudi Arabia on Sunday to regulate the labor contract during exceptional circumstances caused by the coronavirus outbreak.

It stipulates reducing salaries in the private sector by 40 percent with the possibility of terminating the contracts.

The document, a copy of which was obtained by Asharq Al-Awsat, allows employers to reduce working hours and cut 40 percent of total salaries for a period of six months and provides for the termination of contracts with employees after this period.

The regulation defines force majeure as the state taking measures it deems appropriate or based on what is recommended by a competent international organization in a case or a circumstance to limit the deterioration of the situation.

It indicates that applying its provisions doesn’t stop state benefits for employers in the private sector, such as aid in paying wages for workers or exemptions from government fees.

It also stresses on not terminating contracts unless the three conditions that form a force majeure are met.

They are: Waiting six extra months for the measures taken and the resulting precautionary or preventive actions, benefiting from the implementation of the procedures related to reducing wages, annual leaves and exceptional leave, as well as proving that the establishment has suffered losses.

These developments come in line with the actions taken by Saudi Arabia to address the coronavirus pandemic and consider it a force majeure in the contracts signed with employees in the Saudi labor market.



FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.