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18 April 2024

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New circular issued regulating payrolls in virus-hit businesses

03-01-2021 01:29 PM

Ammonnews Jordan

Ammon News - Prime Minister Bisher Khasawneh Saturday issued a new circular regulating the monthly payrolls of those working in sectors and businesses declared hard hit by the coronavirus crisis or not allowed to reopen.

According to Circular No. 18 issued under Defense Order No. 6, workers in sectors and businesses hard hit by the crisis, who are benefitting from "Estidama" program as set forth in Defense Order No. 24 of 2020 and all circulars issued thereunder, shall be entitled to 75 percent of their normal salaries starting from the salary of December 2020 through May of 2021, Minister of Labor and Minister of State for Investment Affairs Maen Qatamin explained.

He indicated that the arrangement shall also cover senior managements in such businesses and sectors, adding that those working in sectors and businesses not allowed to reopen shall be entitled to 50 percent of their salaries for the same aforementioned period.

As for the wages of workers in the sectors and businesses hard hit by the crisis or not allowed to reopen, and who are not beneficiaries of the "Estidama" program, Qatamin pointed out that Paragraph (1) of Clause (First) in Circular No. 8 shall apply.

The said paragraph reads as follows: "The employer may reduce the monthly wage for a worker who fully performs his work, whether in the workplace or remotely, by no more than 20 percent, and it is not permissible to agree on a higher percentage. Such reduction shall be agreed upon with the worker without pressure, coercion or threat, and that the reduction shall include the wages of the higher management. Further, the wage after the reduction shall not be less than the minimum wage prescribed by the law."

He added that the provisions of Paragraph (2) of Clause "First" in Circular No. 8 shall apply to the wages of workers in sectors and economic activities that are not authorized to reopen.

The paragraph reads as follows: "The employer may reduce the monthly wage of a furloughed worker without requiring the worker's or the Ministry of Labor's consent, provided that the reduction shall not exceed 50 percent of the wage and that the wage after the reduction is not less than the minimum wage."

The Minister assured that the monthly wages will be full for workers in sectors not declared affected by the crisis and will also be full for workers in sectors authorized to work.




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