Article 40 of Private Sector Labour Law

The employer shall place the proceeds of deductions from the wages of his workers in a fund designated for expenditure on social, economic and cultural matters that benefit the workers, and shall record the deduction penalties imposed on a worker in a special register stating the worker’s name, the amount of the deduction and the reason for its imposition. In the event of liquidation of the establishment, the proceeds of deductions held in the fund shall be distributed among the workers present in it at the time of liquidation in proportion to each worker’s length of service. The Minister shall issue a decision setting out the rules governing the aforementioned fund and the method of distribution. Chapter Three Termination of the Employment Contract and End-of-Service Gratuity