"Labor Force": 13 Reasons for Deducting Salaries of Private Sector Workers - Sarmad

The Public Authority for Manpower has specified 13 approved reasons within the automated payroll system that companies operating in the private sector may select from when registering requests for salary deductions or reductions. These include unpaid leave, sick leave, childcare leave, partially or fully unpaid leave, as well as suspension from work and unauthorized absence, refusal to work and absenteeism, pre-paid leave (bank transfer), cancellation of the work permit, the recent issuance of a work permit to the employer, an employee registered with an absence report, additional days of absence from work, complaints under investigation or subject to judicial disputes, debts or loans owed to the employer, and transfers to non-local financial institutions.

The regulations emphasized the necessity of submitting documents that prove the legality and justification of the deduction, while adhering to prescribed limits. The maximum allowable monthly deduction is 25 percent of the worker’s salary, provided that supporting documentation confirming the legality of the deduction is attached.