60% salary cut on leave false, Fenaka says
Assessments have been started to convert Fenaka into a subsidiary of STO from next year.
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Fenaka Corporation on Wednesday denied reports that it had decided to deduct from the salaries of employees for annual leave.
If Fenaka employees go on annual leave, they are paid an allowance of 60% of their basic salary.
The move was to encourage employees to take annual leave due to the company's low basic salary before the minimum wage came.
After the introduction of the minimum wage, the basic salary of Fenaka was changed but 60% allowance in addition to the basic salary remained unchanged.
However, on Monday, the company's board decided to cut the 60% allowance during the annual leave.
"With this decision, salaries will not be reduced. The basic salary will be paid in full even if the employees go on leave. The change is the allowance of 60% of the basic salary," Fenaka Chief Human Resource Officer Hussein Hassan said.
Fenaka employs more than 7,000 people. Assessments have been started to convert Fenaka into a subsidiary of STO from next year. The company will take steps to reduce the number of employees and reduce costs.
