The Effect of Covid 19 on Worker’s Compensation – Evidence from Gcc Countries

Abstract

The year 2020 has turned the world upside down with the outbreak of the disease COVID 19. It forced the companies to shift their work focus from office to work from home. Every sector of the economy got affected by the pandemic and a financial crisis was faced by almost every firm. To deal with the financial crisis, many firms have altered their compensation packages. The world of The Middle East is nowhere left behind. The firms of GCC (Gulf Cooperation Council) countries known for their attractive pay packages were forced to make modifications, adjustments, and variations to their compensation. The current paper analyzes various amendments made by firms in the Gulf Countries like Saudi Arabia, Kuwait, UAE, Qatar, Oman, and Bahrain to their compensation management system to cope with the challenges of the pandemic. It also highlights the remittances provided by the governments of these countries to tackle the situation. Analysis was done based on secondary data which includes the Gulf Health Council Report, International Labor Organization reports, Mercer Consultant Report, publication of Arab Reform Initiative, OECD (Organization for Economic Cooperation and Development) publication on MENA countries, and World Bank report (2018). The findings highlighted the turbulence experienced by employees working in gulf, as majority of GCC countries lacked in providing pay protection and job protection. It also describes to what extent the remittances provided by the government in these countries were helpful to the expatriates.