A new labor law was recently released by Sultan Haitham bin Tariq of Oman with the goal of encouraging openness in labor practices and guaranteeing a fair and balanced relationship between employers and employees.
The Royal Decree that established Labor Law 53/2023 includes several clauses aimed at safeguarding workers’ rights and outlining the grounds for termination by an employer. Article 43 of the law clarifies this issue, focusing explicitly on the circumstances under which an employee may be fired.
Modifications to fixed contracts
Switching from fixed-term to open-ended contracts. Upon renewal, fixed-term contracts will no longer automatically change to unlimited-term agreements. However, the contract’s length will automatically be limitless if employment lasts more than five years.
Overall, the recent changes in Oman’s labor legislation protect expats’ rights, but the Omanization process is not favorable for foreign workers. Websites like Layboard still offer vacancies, but finding a good job in the country is becoming increasingly difficult. Of course, those who have already secured employment can take advantage of all the benefits discussed below.
Reorganized vacation policies
The new law has reorganized the current framework and clauses about the different types of leave, adding additional requirements in some situations and lengthening others.
A the new leave provisions are summarized as follows:
- The new rule allows Omani employees to accompany patients for up to 15 calendar days annually; the patient must be a spouse or the employee must be related to the patient up to the second degree of consanguinity.
- Special Leave: With permission from the employer, employees may now request unpaid special leave. During the extraordinary leave, the employee shall pay all social security contributions (if any) on behalf of the government, the employer, and himself.
- Paternity leave: Male employees are now eligible for a seven-day paternity leave.
- Sick Leave: Under the new law, employees are now eligible for 182 calendar days of paid sick leave instead of just 10 weeks, subject to the following requirements: Pay is paid at 100% for the first 21 days, 75% from the 22nd to the 35th day, 50% from the 36th to the 70th day, and 35% from the 71st day to the remaining 182 days.
- Special Leave Without Pay: It seems that a new “unpaid special’ leave” that is granted at the employee’s request and has no apparent time limit has taken the role of emergency leave, as long as the employee makes the required contributions to the Social Security Fund during the absence term.
- Maternity and unpaid parental leave: The length of maternity leave has been extended from 58 to 98 days, and there is now also “unpaid parental leave,” which can be used for a maximum of one year.
Termination
Poor performance: If an employee has been given notice of performance issues and has not improved their performance within six months of the notice, the employer may now fire them for poor performance.
Unjust termination: Compensation for unjust dismissal has been capped at 12 months. The Old Act previously stipulated a minimum of three months’ wages with no upper limit.
Anti-discrimination: Notably, the New Act implemented clauses that specifically forbid firing an employee due to their gender, ethnicity, race, language, religion, creed, social standing, disability, pregnancy, childbirth, or nursing needs.
Redundancy
Redundancy requirements: For financial reasons, employers are expressly permitted to end employment contracts. Any requests for termination will be reviewed by a committee made up of representatives from the General Federation of Trade Unions of Oman, the Ministry of Labor, the Ministry of Commerce, Industry, and Investment Promotion, and the Oman Chamber of Commerce.
They can grant the demands or provide an alternative, like cutting back on working days, hours, and pay or providing sabbaticals to keep the firm running smoothly without having to lay off employees. Employers are not permitted to claim “financial loss” based on their incapacity to turn a profit, the suspension of business operations, or the closure of certain branches because of practical difficulties.
The process of Omanization
Workforce Localization Strategies: Every year, employers are required to submit their workforce localization plans to the DOL. The employer should make this data, which includes specific statistics like the number of Omani workers, salary, gender diversity, and open positions, publicly available.
Promotion of Omanization: The new law makes it clear that non-Omani workers may be fired if doing so would enable Omani citizen to take their position.
Training and Leadership: Under the new law, every business must create a plan for choosing and preparing Omani nationals for leadership roles, as well as for enforcing that plan.
Work Hours
Working hours reduction: With breaks excluded, daily working hours have been lowered from 8.5 to 8 hours (40 hours per week).
Social Security and benefit plans are being revised.
Social Protection Law: The new law and the Social Protection Law were passed in the same week. Although the effective date has not yet been announced, this bill would create a “savings fund.” This is a result of the new law’s end-of-service benefits provisions, which grant foreign nationals the right to receive their whole monthly wage for each year of service.
Benefits at the End of Service: Under the previous legislation, severance pay was only available to workers who had worked for at least a year. This restriction has been lifted by the current law, which permits pro-rata severance pay for portions of a year, even if the employee has worked for less than a year.
Omani job-search websites
Layboard
The Layboard platform helps expats find jobs. It cooperates with job seekers from Eastern and Asian countries and only with legal companies from countries such as the United Arab Emirates, Qatar, Kuwait, and Oman.
Job Travel Possible ( jtp.com)
Your job in Oman or any other Gulf State will be lucrative and completely secure with JTP. The company only works with businesses whose reputations we are confident in. Every new partner is carefully screened. With JTP, the hiring process in Oman would be straightforward and efficient.
- You complete an application and mail it to the organization. Ask their bosses for assistance if needed.
- Talk to JTP experts in an interview.
- They choose the best jobs for you based on the answers to the questionnaire and the outcomes of the interview.
- They then set you up with interviews for the offers you are interested in. No limitations apply.
- You can apply for a visa after signing the job contract. That’s all.
WeXpats Jobs.
For people who wish to work overseas and pursue a prosperous career, WeXpats Jobs was created. WeXpats Jobs offers the following methods for job searches:
- In the “Job Location” area, type the country or city where you are looking for work. Clicking “search” will reveal a list of jobs (vacancies) based on the given criteria.
- Indicate your job.
- You can look for full-time or part-time work. Please select the position in which you are interested.
- Jobs that fit your search parameters will typically be shown.
Alliance
Alliance Recruiting Agency provides employment, human resources, staffing, and recruiting services to businesses, startups, and organizations in the US, Canada, the UAE, the UK, and India.
Randstad
Randstad is a leader in human resources services worldwide. In today’s technologically advanced talent market, they serve as a reliable human partner, helping people land lucrative positions and remain competitive in the rapidly evolving workplace. With its headquarters located in Dimen, the Netherlands, Randstad was established in 1960.
