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Middle East Edition
20th December 2024
 
THE HOT STORY
Saudi Arabia clarifies Hajj leave rules
The Ministry of Human Resources in Saudi Arabia has reiterated the rules regarding paid leave for employees wishing to perform Hajj. Workers are entitled to a minimum of 10 days and a maximum of 15 days of paid leave for Hajj, provided they have worked for the same employer for at least two consecutive years. The ministry also highlighted that employees are entitled to five days of fully paid leave in the event of a family member's death, specifically for the worker's spouse or any ascendants or descendants. Additionally, the Saudi labour law allows for five days of paid leave upon marriage. These reforms aim to enhance the attractiveness of the job market, with recent changes including an increase in maternity leave from 10 weeks to 12 weeks and adjustments to employment contract termination notices.
ECONOMY
UAE economy to be ‘star performer' in the region, Swiss bank says
According to Lombard Odier's 2025 Outlook, the UAE is poised to be the Middle East's leading economy next year, being driven by a strong influx of overseas talent and a booming tourism sector. Dr Nannette Hechler-Fayd'herbe, head of investment strategy at the Swiss bank, observed: “The country's healthy twin surpluses will also safeguard its economy from any temporary shock.” The report anticipates that the reversal of Opec's voluntary oil production cuts will elevate GCC real GDP growth from below 2% in 2024 to above 4% in 2025. However, the ongoing tensions between Israel and Iran pose significant risks. Despite potential fiscal challenges for Saudi Arabia due to fluctuating oil prices, recent reforms are expected to bolster economic resilience. Overall, the outlook remains optimistic for the UAE and the broader GCC region.
TAX
Knesset panel passes 2025 tax hikes
The Knesset Finance Committee has approved a series of tax measures set to take effect on January 1 that are aimed at addressing the fiscal gap caused by ongoing war expenses. The measures include raising National Insurance payments, freezing income tax brackets, and increasing value-added tax from 17% to 18%. The surtax on high earners will also rise from 3% to 5%, and is expected to generate NIS 1bn ($278m) in 2025 and NIS 1.5bn annually thereafter. Yesh Atid MK Naor Shiri criticised the series of hikes, saying: “The entire budget is being taken from the citizens' pockets.”
TECHNOLOGY
Amazon says its warehouse bots are creating jobs
Employees at Amazon's warehouses have raised concerns about unsafe working conditions and job security amid increasing automation, but Tye Brady, Amazon's chief technologist, argues that the company's investment in robotics is enhancing worker safety and efficiency. "We put people at the centre of our robotics universe", he said, highlighting the collaboration between humans and machines. The new systems, such as the Sequoia storage cell and Proteus robots, aim to reduce repetitive strain injuries and improve order fulfilment speed. Despite criticisms, Brady insists that automation is not about eliminating jobs but transforming them, with Amazon committing over $1.2bn to upskill its workforce. The company has created hundreds of thousands of new roles, demonstrating that "more robots, more jobs" is a viable approach, Brady maintains.
CYBERSECURITY
Yahoo slashes cybersecurity team by a quarter
Yahoo has laid off approximately 25% of its cybersecurity team, known as The Paranoids, resulting in the loss of 40 to 50 employees from a total of 200 since the beginning of 2024. Valeri Liborski, Yahoo's chief technology officer, acknowledged the difficult nature of the decision in an email to staff. The layoffs included the complete elimination of the so-called red team, which conducted cyberattack simulations to identify vulnerabilities. Yahoo spokesperson Brenden Lee said: “Yahoo's security program has matured significantly over the past seven years and is widely recognized as a world-class, industry-leading operation. As part of this evolution, we've made strategic adjustments, including transitioning offensive security operations to an outsourced model . . . This change reflects the sophistication of our program and enables us to concentrate resources on critical security priorities, maintaining the highest standards of protection for our users and platforms.” Overall, Yahoo laid off over 1,600 employees last year, or about 20% of its workforce, as part of a plan to enhance profitability.
INTERNATIONAL
Japan’s 'exploitative' foreign trainee scheme in the spotlight
A 23-year-old Cambodian woman who was employed under Japan’s technical internship training programme claims she was repeatedly raped by the manager of the strawberry farm where she worked, forced into an abortion, and threatened with deportation if she resisted. The programme, which is intended to provide skills to foreign workers, is said to have instead become a source of cheap labour amid reports of underpayment and unsafe working conditions. The woman has filed a lawsuit in Tokyo for 80 million yen (US$521,700) in damages. Human rights activists say the case is indicative of the systemic exploitation that plagues the programme, which they describe as akin to "modern slavery." Ippei Torii, executive director of NPO Solidarity Network with Migrants Japan, observed: “Almost every woman who takes part in this programme is sexually harassed at some point.” Despite the Japanese government's plans to abolish the programme by 2027, critics say that meaningful change remains unlikely.
Employee stabs company president during morning staff meeting
An employee at a Michigan-based manufacturing company has been charged with stabbing the company president in an assault during a morning staff meeting. Police are still investigating the motive behind the attack. According to US media reports, Nathan Mahoney allegedly entered a conference room at Anderson Express on Tuesday and stabbed company president Erik Denslow. Following the assault, Mahoney fled the scene in a vehicle but was apprehended less than an hour later. Authorities are exploring whether the stabbing was inspired by the recent murder of UnitedHealthcare CEO Brian Thompson in New York City. “We haven't ruled out a copycat motive,” Deputy Police Chief Greg Poulson said, adding that police are reviewing Mahoney's social media and electronic records for potential leads.
Qantas to pay $120m after illegally firing 1,800 workers
Qantas is to pay $120m to 1,800 ground and baggage handlers who were illegally dismissed in 2020, concluding a four-year legal battle with the Transport Workers Union (TWU). Chief executive Vanessa Hudson expressed her apologies regarding the episode, saying: "This is an important step in bringing closure to these individuals." The airline's decision to outsource jobs was aimed at saving $100m annually during the pandemic. Following the Federal Court ruling that the terminations were illegal, the compensation fund will be managed by law firm Maurice Blackburn and is expected to be established in early 2025. TWU national secretary Michael Kaine hailed the outcome as a positive result for the workers, who faced significant hardships during the ordeal.
Portuguese airline TAP must pay retroactive wages to 1,200 cabin staff, court rules
Portugal's Supreme Court has ruled that 1,200 TAP cabin crew members on short-term contracts who were laid off and later reinstated as staff should receive retroactive pay. The decision from Portugal's top court said the carrier must treat the cabin crew members as if they had always been on permanent contracts and compensate them with back salaries dating from the commencement of their employment. Reuters notes that the ruling has a "unifying" character that establishes jurisprudence for future decisions by other courts, in which dozens of cabin crew members have already filed lawsuits against TAP.
OTHER
Carrefour expands 24/7 express delivery service in Dubai
Carrefour has launched a 24x7 express delivery service in Dubai, promising delivery within 60 minutes for over 10,000 products without additional charges for late-night orders. Operated by Majid Al Futtaim Retail, the service caters to the city’s unique shopping patterns, with 65% of orders placed during late-night and early-morning hours. The pilot hub at Carrefour’s Dubai Marina store initially served areas like Palm Jumeirah and Emirates Hills. The service has since expanded to central Dubai, including Downtown and Business Bay, with plans to cover Mirdif, Arabian Ranches, and more. CEO Günther Helm described the initiative as "convenience commerce," capitalising on grocery as the leading category for online shopping. The move positions Carrefour against competitors like noon, Talabat, and Careem in the quick-delivery market. 
 


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