2.25.2011

Saudi Labour Law - Demotion of employee

My company going to change my present job profile to a lesser pay scale. This is totally against my work contract. What is my remedy?

It depends upon your duration in your work. If you are on probation period, and do not meet the required standard and qualification criterion of your present position, your company has the right to repatriate you. Please see my previous post in this same blog.(saudi labour law, probation rules.)

After probation period, if the same situation arise, most probably companies will reduce salary of the concerned employee and demote him in to a lower position. Consent of the employee is imperative for this action.

Article 60 of the Saudi Labour Law mandates that, Without prejudice to the provisions of Article (38) of this Law, an employee may not be assigned duties which are essentially different from the work agreed upon without his written consent, except in cases of necessity dictated by transient circumstances and for a period not exceeding thirty days a year. As per Article 38, an employer may not employ the employee in a profession other than one specified in his work permit. An employee is prohibited to engage in a profession other than his profession mentioned in his work permit before following the legal procedures for changing the profession.

As per Article 59 of the Saudi Labour Law, a monthly-paid employee may not be reclassified as a daily-paid, a weekly-paid or an hourly-paid worker nor as a employee paid by piecework, unless the employee agrees thereto in writing and without prejudice to the rights he has acquired during the period he spent as a monthly-paid employee.