Oman has recently unveiled significant revisions to its Labour Law, bringing much-needed clarity to various aspects of working in the country.
The updated law covers essential provisions such as leave entitlements, payment regulations, and contractual working hours.
The issuance of the Labour Law Decree comes directly from Sultan Haitham Bin Tarik, aligning with the core principles of Oman Vision 2040 and specifically targeting improvements in the labour market. These changes are aimed at fostering a more conducive and progressive work environment in line with the nation’s long-term developmental goals.
Notable provisions include 98-day Maternity leave for women and 15-day paternity leave for rathers.
The law also allows bosses to set productivity targets and fire workers if they meet the required level.
The law stipulates non-Omani employees can have a contract terminated if they are replaced by an Omani worker.
The Labour Law seeks to furnish an environment that positively responds to changes through legislation that is flexible, resilient, efficient, and adept at addressing current and future challenges.
The law places national capabilities at the forefront of its priorities, preparing them to take centre stage within a framework that ensures rights and duties, thereby enhancing the institutional performance of the private sector and effectively shaping administrative practices.
The Labour Law reaffirms that employment is an intrinsic right for Omanis, stipulating that no others are allowed to work within the Sultanate of Oman except in accordance with conditions and statuses defined by the law and decisions enacted thereof.
The law underlines the importance of each establishment disclosing its annual plan for localisation and replacement, to be published at the workplace and on its official website.
This should include a detailed report on:
- The number of Omani workers
- Their salaries
- Their gender
- Information about job vacancies, if available
The law dictates that every establishment must devise a plan incorporating the appointment and training of Omanis for leadership roles and ensures its effective implementation.
It also calls for the development of practical strategies to retain the Omani workforce.
The Labour Law is the outcome of a nationwide initiative, involving various production stakeholders (employers and workers), as well as specialised entities.
The law ratifies the formation of a Joint Dialogue Committee between these production parties.
This committee is responsible for examining proposals that could regulate the labour market and help fortify relationships between production stakeholders.
It will also analyse updates in both Arab and international labour standards to utilise them in enhancing collaborative dialogue.
Additionally, the committee will work to coordinate the efforts of social partners in the labour market to amplify productivity, augment competitiveness, and ensure balance and harmony between the interests of workers and employers.
This all aims to reinforce national endeavours towards achieving inclusive and sustainable development.
The law, structured into ten sections, provides comprehensive oversight on employment regulations, contracts, and obligations between employers and workers.
It stipulates specifics pertaining to:
- Working hours
- Leave allowances
- Remuneration
- Employment of young people
- Occupational health and safety
- Labour unions
Furthermore, it addresses the General Trade Union, the settlement of labour-related disputes, and related punitive measures.
The Labour Law grants numerous benefits to working women.
These privileges include an allocated hour each day for child care and a 98-day maternity leave provision.
Further, it allows them to avail themselves of an unpaid leave period lasting up to a year for child care.
The law also obliges employers to provide a dedicated rest place in establishments where the number of female workers exceeds 25.
The new law introduces a variety of privileges for the employer.
Notably, the law allows work in specific sectors to be organised according to the conditions unique to each sector, fostering stability in establishments and enabling the employer to manage their business in accordance with the sector’s specific circumstances.
With the Ministry of Labour’s approval, the law permits the employer to allow a worker to work temporarily for another employer.
This provision eases business operations and mitigates the cost of recruiting foreign labour for the employer.
The law empowers the employer to terminate the contract if a worker fails to achieve the stipulated level of productivity.
This is permitted after notifying the worker about the areas of inefficiency and providing them with an adequate period of no less than six months to rectify it.
This clause, when implemented, can boost productivity within the establishment and promote competition among workers.
The law also allows for the termination of non-Omani employees, facilitating the process of “Omanisation” if an Omani worker is employed to replace them in the same position.
To ensure uninterrupted operation in the establishments and to prevent work stoppages due to strikes, the law mandates that the workers, or their representatives, should inform the designated settlement committee to initiate dispute resolution promptly.
The Labour Law has implemented fresh leave provisions, bearing in mind the social aspects of the worker with the objective of enhancing their productivity and overall performance.
These encompass a seven-day paternity leave and a 15-day caregiver leave for accompanying a patient.
Furthermore, the recent changes to the Labour Law in Oman also encompass an increase in the number of sick leave days and an extension of the duration of maternity leave.
The process of enacting the law involved multiple stages of meticulous preparation. Initially, the draft law was shared with the three production parties for their input and feedback. Subsequently, a comprehensive workshop was organised, bringing together representatives from the production parties, various government entities, and professional associations. This collaborative workshop involved a total of 125 participants and played a pivotal role in refining the draft law.
Based on the valuable insights gained from the workshop, the draft law underwent further updates and improvements before being presented once again to the three production parties. After these iterations, the revised draft was submitted to the relevant governmental authorities for a thorough review.
The next step involved submitting the proposed law to the esteemed Oman Council, which comprises the State Council and Shura Council. The law then underwent a legislative cycle of rigorous examination and evaluation by the council members.
Finally, after a thorough and careful process, the new Labour Law was officially enacted through a Royal Decree, culminating in a momentous step towards enhancing worker rights, aligning labour practices with Oman Vision 2040, and promoting a progressive and inclusive work environment in the country.