The new labour reforms make several aspects of working in Oman, such as leave benefits, compensation, and contracted hours, crystal clear. In accordance with the tenets of ‘Oman Vision 2040’, Sultan Haitham Bin Tarik issued the Labour Law Decree, which focuses on the labour market.
Labour Law of Oman
The 98-day maternity leave for women and the 15-day paternity leave for fathers have emerged as notable measures from the latest reforms, which also enable employers to set productivity goals and terminate staff members who do not meet them.
According to the legislation, if an Omani worker replaces a non-Omani employee, the latter’s contract could end. The Labour Law aims to create a climate that adapts well to change by enacting legislation that is adaptable, robust, effective, and capable of addressing both immediate and long-term problems.
The law prioritizes national strengths and sets them up to take centre stage within a framework that protects rights and obligations, increases private sector institutional performance, and successfully influences administrative procedures.
The new laws enacted in Oman affirm and uphold the principle that employment is a fundamental right specifically reserved for Omani citizens. These laws also strictly prohibit anyone else from working in the Sultanate of Oman unless they meet the specific conditions and statuses outlined by the law and relevant decisions.
A crucial aspect of these regulations is the emphasis on transparency and accountability in the employment sector. Each establishment operating within the country is mandated to publish its annual strategy for localization and replacement, both at its workplace and on its official website.
This strategy must include a comprehensive report on various aspects of their workforce, such as the number of Omani employees employed by the organization, their respective pay scales, and relevant demographic information, including gender statistics. The aim is to ensure fairness and equal opportunities for Omani citizens in the job market.
Organizations are also required to disclose information regarding any open positions within their establishment. This measure is to encourage more Omani citizens to apply and secure employment opportunities within their country.
Additionally, the new law makes it obligatory for every organization to develop a comprehensive plan that focuses on the hiring and development of Omani citizens for leadership positions within the company. This plan must be diligently executed with a commitment to promoting the growth and advancement of qualified Omanis to assume higher responsibilities and positions of leadership.
These new laws underscore the Sultanate of Oman’s dedication to empowering its citizens in the workforce and ensuring that they have a fair chance to thrive and succeed in their careers within the country’s boundaries. By prioritizing localization and the employment of Omani citizens, the government aims to foster economic growth, inclusivity, and long-term prosperity for its people. It also advocates for the creation of workable retention methods for the Omani workforce.
The Labour Law in Oman is the culmination of a nationwide effort that involved various specialized bodies as well as representatives from different production stakeholders. A ‘Joint Dialogue Committee’ has been established to facilitate communication and cooperation between these production parties.
The primary responsibility of the Joint Dialogue Committee is to examine and propose ideas that can effectively regulate the labour market while strengthening the relationships between the parties involved in production. This entails analysing and aligning labour standards, both on the Arab and international levels, to ensure that the country’s labour practices adhere to best practices.
Moreover, the committee aims to enhance productivity, promote competitiveness, and strike a balance between the interests of employees and employers. By coordinating the activities of social partners in the labour market, they seek to foster a harmonious working environment that benefits all stakeholders.
These efforts are in line with the broader objectives of promoting inclusive and sustainable development within the nation. The comprehensive ten-section law oversees various aspects of employment, including laws governing working hours, leave stipends, remuneration, and the employment of young people. It also addresses critical concerns related to safety and health at work, acknowledging the importance of safeguarding employees’ well-being.
Furthermore, the Labour Law incorporates provisions regarding trade unions and the General Trade Union. It outlines procedures for the resolution of labour-related disputes and the implementation of corrective actions. The law’s comprehensive coverage ensures that employment practices are conducted fairly and responsibly, promoting a conducive and equitable working environment in Oman.
Benefits for working women
The labour reforms have taken women into consideration as well. These benefits include a 98-day maternity leave provision and a daily childcare allotment of one hour.
Additionally, it permits the use of a yearlong unpaid leave term for child care. Moreover, the law requires companies to provide a designated rest area in workplaces with more than 25 female employees.
Employee privileges
Notably, the law permits the organization of work in particular sectors in line with the circumstances particular to each sector, promoting establishment stability and enabling the employer to run their firm in accordance with the sector’s particular characteristics.
The law authorizes the employer to permit a worker to temporarily work for another employer with the Ministry of Labour’s approval. This clause facilitates company operations and lowers the employer’s cost of hiring overseas workers. If a worker doesn’t provide the required level of productivity, the law gives the employer the right to end the employment relationship. This is allowed after informing the employee about the problem areas and giving them at least six months to address the issues.
When put into practice, this rule can increase workplace productivity and encourage employee competitiveness. The law also permits the dismissal of non-Omani workers, which speeds up the “Omanization” process if an Omani worker is hired to take their place.
According to the law, employees or their representatives must inform the settlement committee promptly to resolve any disputes and ensure that operations in the establishments continue without interruption.
The Labour Law has undergone significant enhancements with the incorporation of new leave rules that consider the socioeconomic characteristics of workers. This comprehensive bill went through meticulous development, undergoing multiple stages of scrutiny before being successfully passed into law. The proposed bill was initially presented to the three production parties, setting the foundation for a collaborative approach to labour reform.
Following that, a workshop regarding the proposed law was held with 125 participants, including representatives from these production parties, various governmental entities, and professional associations.
The subsequent amendment to the draft statute, which was once again offered to the three production parties, was one result of the workshop. The appropriate governmental authorities were then given the updated draft.
The proposed legislation was forwarded to the Oman Council, which is composed of the State Council and the Shura Council, for evaluation as part of its legislative process. Eventually, a Royal Decree was utilized to put the legislation into effect.
Since launching its nationalization drive, Oman has intensified its efforts to regulate foreign workers, aiming to curb undesirable practices in the labour market. In 2022, the Ministry conducted extensive investigations at approximately 12,045 locations. With a strong commitment to eradicating any negative trends, the government has significantly increased inspection measures. The year 2022 witnessed a substantial number of labour complaints, reaching 66,469, along with 27,954 reported cases of job desertion, and nearly 17,000 workers were subjected to detainment as part of these measures.
The Ministry of Labour reports that over 7,000 foreign employees were detained this year for violating labour regulations.
Evolving labour market
The new Labour Law aims to establish a responsive and efficient legislative framework that can adapt to the ever-changing labour market dynamics. The emphasis is on flexibility, resilience, and the ability to effectively address current and future challenges.
To maintain efficient operations and avoid work interruptions caused by disagreements or strikes, the law requires employees or their representatives to promptly inform the designated settlement committee to begin resolving disputes.
In general, the recently implemented Labour Law in Oman is a significant and forward-thinking measure in promoting a constructive and all-encompassing workplace atmosphere. Moreover, this move is in line with the nation’s overarching aim of achieving sustainable development.
The implementation of the law went through extensive consultations with stakeholders and shows a commitment to bringing modern labour practices to Oman.