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Middle East Edition
28th August 2024
 
THE HOT STORY
Klarna cuts 1,000 jobs as it adopts AI
Buy now, pay later lender Klarna has cut more than 1,000 jobs as part of a move to increase the use of artificial intelligence (AI). Klarna has been using chatbots to handle customer queries and says its AI assistant can perform the work of 700 employees and has cut the average resolution time from 11 minutes to just two. While the company employed about 5,000 people this time last year, its headcount has fallen to 3,800 – and a spokesperson said that figure is likely to fall to about 2,000 in the coming years. The Stockholm-headquartered company has imposed a hiring freeze on workers apart from engineers and says it will not replace those who leave rather than make staff redundant as it reduces its workforce.
LEGAL
Labour law violations in Saudi Arabia hit 107,329
Saudi Arabia's Ministry of Human Resources and Social Development has reported that 107,329 establishments were found non-compliant with various articles of the Labour Law during inspections of over 700,200 private sector firms. The violations included failure to pay salaries, with 16,295 cases of unpaid wages and 59,891 employers not increasing wages as mandated. Additionally, there were 7,662 instances of foreign employment in roles reserved for Saudi nationals. The ministry issued 88,776 warnings and noted a compliance rate of 93.5% for Saudization efforts. The ministry encourages reporting of violations through their hotline or smartphone app.
Saudi court rules in favour of ex-employee
A Saudi court has ordered a Riyadh-based company to pay SR275,000 in compensation to a former employee who was unjustly dismissed after a dispute over unpaid wages. The court found that the woman’s absence from work was justified due to the company’s failure to pay her salary for two months. The ruling stated that her dismissal was arbitrary, and she was entitled to compensation covering damages for the notification period, leave balance, and end-of-service gratuity. Additionally, the court mandated the company to provide her with a certificate of experience in accordance with Saudi labour law. The ruling is final.
DIVERSITY, EQUITY & INCLUSION
Jordan's JEA to overhaul policies to address growing diversity in engineering
The Jordan Engineers Association (JEA) is undertaking significant reforms to its policies to adapt to the growing diversity within engineering disciplines and the influx of new engineers. In a statement, JEA President Ahmad Samara Zu'bi remarked, “The advisory committee's efforts are particularly crucial in engineering practice, institutional development, and maintaining the laws that govern our association.” The committee aims to ensure that members are well-equipped and skilled, contributing positively to Jordan's engineering sector. JEA member Ali Waleed emphasised the necessity of continuous updates to maintain the association's relevance, especially with thousands of new graduates entering the profession. Razan Khaled, another JEA member, observed: “While it's important to preserve the core values of engineers, embracing innovation and positive changes is essential in today's world.”
HEALTH & WELLBEING
Pinsent Masons trials burnout alerts for lawyers
Following the death of UK based partner Vanessa Ford, law firm Pinsent Masons is implementing a new time-tracking system to alert management about employees working excessive hours. The initiative aims to address the intense workloads and stress faced by lawyers, particularly after the coroner's court ruled that Ford's death was linked to a mental health crisis exacerbated by long working hours. Pinsent Masons, which employs 3,000 staff globally, hopes that the time-tracking technology will enhance visibility of workloads and facilitate better distribution of tasks among lawyers. A spokesperson said: "It is still early days, but using technology like this will help increase our visibility of colleague workloads."
WORKFORCE
Pension Conference set for Tunis
The 8th Arab Pension & Social Insurance Conference (APSIC) 2025 is scheduled for June 3-5, 2025, at the Four Seasons Hotel in Tunis, under the patronage of Dr Kamel Maddouri, Head of Government. The conference, themed “The Reforms Journey Towards Retirement Security”, will serve as a vital platform for pension organisations, asset managers, and regulators across the Arab region. Ebrahim K Ebrahim, CEO of MenaMoney, expressed enthusiasm for the event, stating, “It is heartening to see APSIC grow year after year.” This year’s focus will be on the sustainability of public pension structures and the challenges posed by demographic changes and digitalisation. The conference aims to enhance awareness of pension dynamics and their impact on social protection systems. Registration is currently open.
TECHNOLOGY
ADIB embraces cloud for growth
Abu Dhabi Islamic Bank (ADIB) has successfully migrated its Cloudera platform from on-premises infrastructure to the Azure public cloud, marking a significant milestone in its digital transformation journey. This transition enhances ADIB's data operations, providing improved cost efficiency, flexibility, and scalability. Manoj Bhojwani, Chief Information Officer of ADIB, said: "The migration to Azure has significantly improved our data accessibility and operational efficiency, enabling us to better serve our customers and drive innovation in our services." The upgraded platform equips ADIB with advanced data analytics and management tools, positioning the bank for future growth and innovation in a competitive market.
INTERNATIONAL
Ban on remote work at X beats disability bias claim
A federal judge in California has dismissed a lawsuit against social media platform X, previously known as Twitter, which had accused the company of discriminating against employees with disabilities after Elon Musk's takeover. U.S. District Judge Araceli Martinez-Olguin stated that the plaintiff, Dmitry Borodaenko, did not demonstrate how Musk's mandate for employees to return to the office specifically affected workers with disabilities. Borodaenko, a former engineering manager and cancer survivor, claimed he had his employment terminated for refusing to return to the office during the COVID-19 pandemic. The judge said: "Borodaenko's theory improperly relies on the assumption that all employees with disabilities necessarily required remote work as a reasonable accommodation." The lawsuit is part of a series of legal challenges faced by X following Musk's $44bn acquisition and subsequent layoffs. Other cases accuse the company of not giving employees and contractors advance notice of layoffs, failing to pay billions of dollars in promised severance, and disproportionately targeting women and older workers for job cuts. X denies wrongdoing.
Binance hires 1,000 as compliance spend tops $200m
Binance is set to expand its compliance workforce to 700 by the end of 2024, up from 500 currently, as part of a broader strategy to meet increasing regulatory demands. Chief Executive Officer Richard Teng said: "Government agencies are important," highlighting the company's commitment to compliance amid ongoing scrutiny. The firm plans to hire 1,000 new employees this year, with a significant number allocated to compliance roles, as the company's annual spending on regulatory requirements surpasses $200m. Teng noted that requests from law enforcement agencies have surged, reaching 63,000 this year. The company is also under the watch of monitors appointed by US agencies, who are assessing its financial practices. Despite these challenges, Teng affirmed that Binance remains profitable and is exploring potential locations for a global headquarters.
Vatican employees voice concern over job cuts
The Association of Lay Vatican Employees (ADLV) has raised concerns regarding recent cuts and outsourcing policies that threaten job stability within the Holy See. Their document highlights that personnel spending cuts have not led to "a radical improvement to the financial situation of the Holy See" and criticises the freeze on promotions, new hires, and overtime pay. The ADLV questions the implications of an "announced salary reform" and the potential impact on pensions. The association also expresses its discontent over the lack of meritocracy in promotions and the outsourcing of resources, stating it transforms "a small community inspired by the values of the Gospel into a business." The document concludes with a stark warning: "Discontent is growing mercilessly."
Many forced to quit Venezuela's PDVSA over their political views, workers say
Following the disputed election on July 28, over a hundred employees at Venezuela's state oil company PDVSA have been forced to resign due to their political views. Workers and unions report that those who did not support President Nicolas Maduro are being pushed out. "They call you to human resources, sit you down, and give you a resignation letter you must sign," said a source familiar with the situation. The political purge has exacerbated staffing issues in a company already struggling with a lack of qualified workers. Other public sector entities are also affected. Union leader Jose Bodas said: "This is political retaliation against numerous workers who in the most recent electoral process have shown themselves against Maduro."
 


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