Reduction of Salary Permanently? Know Your Rights.

By Suneesh | May 2 , 2020 | 01

An employer may reduce the salary of the employee temporarily or permanently if affected by the current Covid-19 crisis. This is in accordance with Article 2 (4) & (5) of the Ministerial Resolution which states: “Establishments affected by the precautionary measures referred to above, who wish to reorganize its employee relations, shall take the following measures gradually, and in agreement with the non-national employee

4. Temporarily reduction of salary during the mentioned period

5. Permanent reduction of salary.”

Article 5 of the Ministerial Resolution allows an employer to reduce the salary of an employee and states the procedures to do so. Establishments that wish to temporarily reduce the salary of a non-national employee during the mentioned period shall take the following actions:

1. Conclude a ‘Temporary Additional Addendum’ to the employment contract between both parties, in accordance with the template attached to this Resolution, provided that it shall expire at the end of its term or enforceability of this Resolution, whichever comes first.

2. Renewing the Addendum referred to in Clause 1 of this Article shall be in agreement between both parties.

3. The Addendum referred to in Clause 1 of this Article shall be executed in two copies, each party holding a copy, and the employer shall commit to present it to the Ministry whenever asked.