Oman's proposed new bankruptcy law to help pay worker salaries
Bankruptcy and insolvency law does not guarantee salaries, but views them as a right that must be paid with available funds
The sultanate’s State Council has been sent a new Omani law on bankruptcy and insolvency with that aims to protect worker rights and boost the Gulf country’s economy, with the law reportedly set to formalise a process for companies to apply for bankruptcy – and help ensure that worker salaries are not delayed.
According to a report by local daily Times of Oman, member of the State Council’s Economic Committee, Saif Ali Shaikhan Al Amri, said the first step after bankruptcy begins would be to “gather all remaining assets before a judge and a bankruptcy manager, where rights such as salaries and pending payments are distributed”.
He added: “The step after that involves looking at accrued debts and the loans given.
“While [the law is] not saying that the salaries are guaranteed, [it specifies] they are a right which will be given so long as the funds exist to do so.”
Vice chair of the council’s Legal Committee, Issa Said Sulaiman Al Kiyumi, told the daily that while some may receive the law “negatively”, the legislation would contribute to safeguarding the sultanate’s economy and businesses.
According to the Times of Oman report, he added: “All countries care about corporate society and try to provide it with opportunities and protect it from crisis.
“The ongoing Bankruptcy Law Project is one of the important steps that some might look at negatively. However, the law has been designed in order to protect debt owners, those in debt, and other parties.”