Siraj Abu Al-Saud
Al-Sharq
The new Labor Law has been issued with amendments in different articles, including Article 77 that stipulates; “where compensation is not agreed in the contract when it is terminated by either party for an illegal reason, the party harmed by the termination deserves compensation equivalent to the wages of 15 days for each year of service in the case of indefinite term contracts, and the wages for the remainder of the contract period in the case of fixed term contracts. In either case, the default compensation sum must not be less than two months’ wages.”
This article allows employers to dismiss employees unfairly, and without reason. All the employer has to do is give the employee a meager compensation for such dismissal. An employer can harm any employee, thanks to this article. Any employer would be happy to pay this compensation and get rid of a Saudi employee who might be in desperate need of the job.
Logically speaking, each company should hold on to good employees and never let them go. This means that this article would not affect any good employee, but many forces, including ignorance of management skills, prevalent tribal loyalties, jealousy, and social class, govern our work environment. This article will be a great gift to those who want to settle scores with employees who rub them the wrong way.
I strongly believe that this article is dangerous and could cause many to lose their source of income and living through no fault of their own. I am sure we will see many cases of unfair dismissal in companies, and the negative effect of these dismissals will be considerable. Forcing an employee out of his job might drive him into the hands of the wrong person, and he may even end up joining a terrorist group.
I have failed to find a logical explanation for the amending of this article. As far as I know, the unemployment rate is increasing, and more young people are looking for jobs in a market that has fewer opportunities.
A large number of young people are still looking for jobs. The young men and women who received their education in prestigious universities overseas will grab the first job opportunity that comes their way because there are not many out there in the market. Most companies are filled with expatriate workers who are taking jobs away from Saudis.
What we hoped was that the ministry would introduce more mechanisms to implement Saudization and reduce unemployment. Article 77 has dashed the hopes of any Saudi employee who wants better opportunities. The article could easily drive many Saudi families into poverty should their breadwinner lose his job.
Article 77 has given employers full right to humiliate, enslave, and disrespect Saudi workers. Employers can blackmail, terrorize, and frighten employees, making them feel humiliated and helpless. It is not fair.
I call upon the Ministry of Labor and the Shoura Council to suspend this article immediately. If this call is ignored and no action is taken, I am sure that in the coming days we will see the dire consequences of applying this article to Saudi employees.
