Sultan Haitham bin Tarik of Oman recently issued a new labour law aimed at ensuring a fair and balanced relationship between employers and employees while promoting transparency in labour practices.
The Labour Law 53/2023, this legislation, issued via Royal Decree, features various provisions to protect workers’ rights and outline the circumstances under which an employer can terminate an employee’s service.
Article 43 of the law specifically focuses on the conditions of employee termination, providing clarity on the matter.
The law allows termination if an employee fails to meet required performance standards. However, employees are granted a six-month grace period to improve their performance, and if the level remains unsatisfactory, termination may occur.
For Omani employees, the company must replace them with another Omani national in such cases.
The law also allows for termination in situations like a business shutdown, bankruptcy declaration, a reduction in the scope of business activities, or implementation of an alternative production system affecting staffing needs.
Moreover, economic factors may necessitate employee termination, but this requires the employer to submit an application to a committee within the Ministry of Labour for approval.
New Oman labour law changes protect expat workers
Expat workers are also protected under this law. Employers are prohibited from holding their passports or private documents without written consent.
If an expat worker is dismissed, they have the right to file a complaint within 30 days of notification.
The new labour law ensures employee leave entitlements, including a minimum of thirty days of annual leave after six months of employment and the ability to combine leaves based on mutual agreement.
Non-Omani workers are entitled to a return air ticket to their home country, and they receive their full wage during official holidays.
The law also permits employers to grant unpaid special leave based on the worker’s request and subject to conditions.
Additionally, the law mandates a six-month grace period for performance improvement before termination and emphasises the need for employers to maintain an attractive work environment.
Provisions for the transfer of workers to different projects and the requirement to hire Omanis for old projects with equal wages and benefits further enhance the law’s equitable approach.
Other aspects of the law address temporary job assignments, shifts changes based on ability, an hour of childcare for women after childbirth, and the necessity for sick leave applications to be approved by the Ministry of Health from private hospitals.
