Companies can come to an agreement with their employees for a salary reduction as businesses struggle to stay afloat during the coronavirus crisis, reported Al Rai daily.
A new draft law was referred to the Parliamentary Finance Committee by the government to address the effects of curfew and the coronavirus crisis on the labor market.
The government has revamped its plan for amendments to the Labor Law in the Private Sector to that effect taking into account how business activities have been impacted by the total and partial curfew. The temporary law will be in effect during the period of measures taken to limit the spread of the coronavirus, and will end once the measures are no longer needed.
Article 1: Of the draft law allows the minister in charge to work with the employers as the precautionary measures taken by the state to contain the spread of the coronavirus pandemic has affected the business totally or suspended activities. The Council of Ministers will approve the minimum wage during the period of halting businesses. Also allows for employers to agree with the employees for a salary reduction for the work period by a maximum of 50 percent during the coronavirus crisis.
However, the actual working hours are taken into consideration to decide on the paid wage, and without going against the stipulated minimum wage. All employee wages are calculated based on their salary due to them before it is reduced within the work period. Support is given as well as unemployment allowance for those Companies who redo their business plans to protect Kuwaiti national employment.
Article 2: Stipulates that the provisions of the first article of this law is only applicable during the period of the coronavirus preventative measures that the Kuwait has undertaken. It does not feasible for any other provision that violates the provisions of this law, and the law will no longer be followed once the coronavirus health measures cease.
Article 3: The period determined by the Council of Ministers as a period for halting activity is not 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 given the effect of the measures undertaken to tackle the coronavirus, the law aims to maintain a balance in work and business relations in the private sector. Hence, the law is temporary in nature with these circumstance and to fill some legislative need related to dealing with the impact of this pandemic on businesses and enterprises in Kuwait.
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