KUWAIT CITY, May 6: MP Ahmed Al-Fadhl submitted a bill on amending the Private Sector Labor Law in a bid to find more alternatives for the employees of small and medium enterprises (SMEs) during difficult times; such as epidemics, disasters and even when these employees face problems.
He pointed out the current options include terminating the services of the employees or paying them full salary. He clarified this bill has nothing to do with the proposal that the government intends to submit soon which, according to a number of MPs, include reducing salaries.
The bill stipulates that the employer can submit a request to the Public Authority for Manpower (PAM) to study his file and determine if the employer lacks cash flow due to the above mentioned incidents. The authority should carefully review the file.
Once the information provided by the employer is verified, the latter is granted authorization to conduct negotiations with the employees on the amount to be deducted from their salaries within a specific period, but the deduction should not exceed 30% of the salary and it should not be implemented without the approval of the employees.
The lawmaker explained the bill covers SMEs only like laundry shops, groceries and small shops whose owners have no accumulated gains which enable them to stand firm for a long period.
He stressed that big businesses like major companies, petrochemicals and communications will not be granted such option, because they have huge funds to cover expenses for a long period.