Amending Some Provisions of the Labour Law. We Qaboos Bin Said. Sultan of Oman. After perusal of the Basic Law of the State promulgated by Royal Decree. We, Qaboos Bin Said, Sultan of Oman,. After perusal of the State Basic Law promulgated by the Royal Decree No. /96,. And the Labour Law issued by the . Inspectors appointed as such by the Government of the Sultanate of Oman. 5. All employers and workers are subject to the provisions of this law except where.
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Article (3): The Labour law issued by the Royal decree no. 34/73 . The employer shall employ the Omani workers to the maximum possible extent. The ratio of. Oman Labour Law. Middle East Labour Market Research. Additional research and analysis on the Middle East employment market and HR practices can be. The Oman Chapter to Employment & Labour Law 7th edition deals with issues relating to: An overview of Oman labour law, Employment.
However, if an employee agrees to work additional hours that exceed the working hours provided for in the Labour Law, then they shall be entitled to proportionate additional compensation. Termination of Employment. The Oman Labour Law does not apply to the following categories, for which the Ministerial Decisions are issued:. The Oman Labour Law accords special treatment to women and provides them some extra benefits as compared to male employees. This is required to be backed by proper audited accounts of the business. Such additional compensation depends on whether the overtime is worked during working days, or on week rests or national holidays, whatever days are agreed to be working days and week rests, as is satisfactory to both the employer and the employee, which may be contrary to the conventionally known weekdays and week rests. This is a popular mechanism in Oman for employers, especially those who are either new establishments or are embarking on new projects.
On the other hand, the Oman Labour Law also caters to the abandonment of the work by the employee under several specified circumstances. Unless a different mechanism for labour dispute resolution was agreed between the employer and the employee, such as arbitration, the labour disputes shall first be addressed before a designated body established for this purpose, which is the Department for the Settlement of Labour Disputes, at the MOM.
Such award shall not be binding upon the parties unless they agree to it. However, if at some point the parties wish to enter into a settlement out of the court, they can withdraw the case and register their settlement before the court.
The minimum employment age of national employees is 18 years, except for juveniles, as explained below, whereas an expatriate shall not be below 21 years of age at the time of their application for the employment visa. The retirement age of all employees, irrespective of their nationality, is 60 years.
However, there are several instances where the authorities may extend the employment visa of expatriate employees beyond 60 years of age, on a case-by-case basis.
The Omani Constitution guarantees Omani nationals the right to work, prohibits compulsory labour — except in extraordinary circumstances and for a fair wage — prohibits discrimination between citizens, and generally makes an effort to tackle all employment issues. The workers may form labour unions from themselves, which shall be subject to registration with the appropriate Ministry to safeguard their interests, defend their rights and improve their social status related to their employment.
Article of the Labour Law allows employees to form a trade union to safeguard their interests, defend their rights, and to represent them on matters relating to their employment affairs. Article of the Labour Law provides that an employer who prevents their employees from carrying out their labour union activities, or by any means hinders the formation of such, or the formation of general federation of employees, shall be punished by imprisonment for a period not exceeding one month, and a fine of not more than RO, or one of the two penalties.
The Labour Law and Ministerial Decision no. In the event of collective bargaining or negotiations between an employer and the trade union, the employer is obliged to provide the information necessary to conduct the negotiation. Whilst the negotiations between an employer and the representatives of a trade union are ongoing, any measures or decisions taken by the company against said trade union shall be considered unlawful. In the event that a collective labour agreement is concluded between a company and trade union, and in accordance with Article 5 of Ministerial Decision No.
Conversely, article 17 of Ministerial Decision No. Engaging in political activities or any other activity not specified in its statutes. Article 75 of the Oman Labour Law establishes that the minimum age for employment is 15 years, while minors between the ages of 15 to 18 years are not permitted to work between the hours of 6 p.
Minors are also prohibited from working overtime or in certain hazardous occupations, and employers are barred from requiring minors to work on official days of rest or official holidays or for more than six hours per day, as per Article 76 of the Labour Law. Furthermore, it is understood that the juveniles are in a physical development stage, as compared to adults, and also that children seeking employment at this age might more commonly be from poorer backgrounds.
For such, Article 3 mandates that they must be provided with a medical check before, during and for six months after the termination of service, at the sole expense of the employer. The Oman Labour Law accords special treatment to women and provides them some extra benefits as compared to male employees.
Such provisions include non-discrimination in the workplace, non-assignment of women for work between 9 p. An employer who employs one or more women workers must keep a copy of the regulations of employment of women in the workplace. This regulation also dealt with specific health and safety needs related to women and people with special needs. Employers, for instance, must not expose women to materials or occupational practices which could adversely impact the safe delivery of children or the health and safety of the foetus.
The government recognises the importance of inclusion of Omani employees in the private sector fully, and has hence been, over time, introducing policies for training and development of Omanis for the sustainable future, and for the overall growth of the country.
The Omani workforce is comparatively young in volume and in occupational orientations, and is generally more inclined towards public sector jobs, which, consequently, elicited the government to enforce policies encouraging Omanis to pursue job opportunities in the private sector. The Omanisation percentages are modified from time to time based on further directives issued by the MOM, and certain specified categories of employment are reserved exclusively for Omani nationals.
This policy can be a hurdle for multinationals and foreign companies looking to establish a prominent business presence in Oman, as the inability to attract and retain the requisite numbers of Omani nationals can have adverse consequences.
However, as part of the incentive package to attract foreign investment into the Free Zones, Omanisation quota requirements have been lowered. Nevertheless, the MOM will normally not issue expatriate labour clearances for companies that fail to hire qualified Omanis to meet the labour quota targets. In case qualified Omanis were not available, the MOM may issue labour clearances, pending future availability of qualified Omanis to fill such positions.
Non-fulfilment of the prescribed percentage of Omanisation may bring penalties on the employers, such as the suspension of their right to obtain additional employment clearances for expatriate employees or financial penalties, etc. Further, an employer seeking to hire an expatriate for any given position must obtain a prior labour clearance from the MOM, which requires the employer to demonstrate that: In contrast, companies that exceed the target Omanisation percentage for their sector are entitled to preferential treatment when it comes to obtaining labour permits for additional expatriate employees.
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Sign up for free newsletter. An overview of Oman labour law.
Back to top. Background Oman is one of the fastest growing economies in the Middle East, with its government diligently undertaking a great number of development projects to modernise the economy, improve the standard of living, and thrive to become a more active player in the global marketplace.
General overview and analysis The Oman Labour Law applies to all private sector employees other than domestic workers, Omani civil servants and security forces personnel , whether Omani or non-Omani, employed by local or foreign companies having an office in Oman.
The Law, with prudent regulation in establishing fairness between local and international workers, requires expatriate employees to meet the following criteria: If an employer: Employment contracts. Entrance, residency and employment visas.
Working hours. Other benefits and entitlements. The Labour Law prescribes certain other entitlements that the employee is to receive, such as: Social security. Coming into effect from 1 July , the contributions to the said insurance fund have increased as follows: Types of leave. Sick leave Subject to the provisions of the Social Insurance Law, an employee whose sickness is medically proven shall be entitled to sick leave not exceeding 10 weeks in the aggregate in a one-year period, whether continuous or separate.
Wage payment during sick leave must be granted as follows, unless otherwise agreed between the parties: Emergency leave Ministerial Decision No. Maternity leave A female employee is entitled to 50 days of maternity leave, covering the periods before and after the delivery with a full gross salary; provided that such leave entitlement is limited to three occurrences during her service with the employer.
Special leave The Oman Labour Law recognises the situations where an employee may reasonably require additional leave, and hence it lays down provisions for special leave as follows. An employee is entitled to special leave while according them full gross salary under the following circumstances: Annual leave An employee is entitled to annual leave upon completion of a minimum of six months of continuous service with the employer.
Human resources policy and redressal of grievance. Other employment considerations. The notice period is 30 days, unless otherwise agreed between the parties.
Article 40 of the Oman Labour Law provides the following circumstances when the employee could be terminated immediately and without the end of service benefits:. In what circumstances is an employee treated as being dismissed? Is consent from a third party required before an employer can dismiss? If the employee believes that they have been dismissed unfairly, they can file an online claim at the Ministry of Manpower. This has to be filed within 15 days of the receipt of the termination notice in case the employee objects to the dismissal and wants to be reinstated.
In case the employee does not want to be reinstated, he has to file the claim within one year from the date of dismissal. There is no third-party consent required for an employer to dismiss an employee. All private employees governed by the Oman Labour Law are equally protected against unfair dismissal, without any special category being given extra rights over other categories. Are employees entitled to compensation on dismissal and if so how is compensation calculated?
The Supreme Court has recently held that heavy financial losses can be considered as a reason for termination of employment. This is required to be backed by proper audited accounts of the business. For dismissals related to disciplinary conducts, warning letters have to be issued to the employee, who should acknowledge the receipt of the warning letter.
What are the remedies for a successful claim? In addition to all the unpaid monies like any pending salaries, leave salaries, etc.
The employees can approach the Ministry of Manpower for the redressal. Some embassies also provide a platform to represent their respective nationals before the Ministry of Manpower. The employee may be subjected to protect the confidential information of the business, goodwill of the ex-employer and the ex-colleagues after termination.
Such issues are considered to be moral obligations on the parties and a violation of such can lead to punishment.
For employees willing to join another employer in Oman, they are required to obtain a No-Objection Certificate from the employer. Issuance of such No-Objection Certificate is at the discretion of the employer, except if otherwise agreed between the parties.
If the employee does not have a No-Objection Certificate from the previous employer in Oman, he is prohibited to join another employer in Oman for a period of two years from the date of cancellation of the employment visa. Restrictive covenants are enforced through the Ministry of Manpower in cases of civil violations, and through the Royal Oman Police in cases of criminal violations of the restrictive covenants.
Can an employer transfer employee data freely to other countries? The employees have the right to obtain their Ministry of Manpower-related documents, as well as their personal documents. Yes, the employers are entitled to carry out such pre-employment checks at their own discretion and can also require the employees to declare any such cases against them.
There have been some recent cases where employees were terminated in such manner, although this is not very common. The matter is first listed for mediation at the Ministry of Manpower. Is conciliation mandatory before a complaint can proceed? Does an employee have to pay a fee to submit a claim? The Ministry of Manpower then sends text messages and emails to the parties about the claim and the date and time of hearing for the mediation. If the matter is decided at the Ministry of Manpower level, it normally does not take more than two months after the first listing.
However, if the matter is transferred to the court, the time taken for disposing of the matter depends on the facts and circumstances of each case.
Yes, it is possible. The time taken for disposing of the matter depends on the facts and circumstances of each case. The ICLG to: Chapter content Free access. Terms and Conditions of Employment. Employee Representation and Industrial Relations.
Maternity and Family Leave Rights. Business Sales. Termination of Employment. Protecting Business Interests Following Termination. Data Protection and Employee Privacy. Court Practice and Procedure. The Oman Labour Law does not apply to the following categories, for which the Ministerial Decisions are issued: Oman Labour Law provides for the following minimum employment conditions: This annual leave could be encashed into cash, however, it is mandatory to have at least 15 days off every two years; 4.
Assigning its assets whether in rem or in cash. The Oman Labour Law provides the mechanism for the formation and governance of trade unions. This is subject to the internal governance mechanism of the employer company.
Trade unions and works councils both have their own respective roles and rights. The party claiming discrimination can approach the Ministry of Manpower for redressal. She has the same rights as she had before going on the maternity leave.
This is subject to the agreement between the parties to the employment contract. The employer is not obliged to inform or consult the employees for selling the business. This can only be done with the mutual agreement of the parties to the employment contract. Article 40 of the Oman Labour Law provides the following circumstances when the employee could be terminated immediately and without the end of service benefits: