Oman announces changes to labour law: Highlights

The government of Oman announced significant changes to its labour regulations. Changes have been made to the working conditions in the country, including provisions related to leave allowances, payment structures, and contracted working hours, as per Oman News Agency.

The labour law decree 53/2023, issued by Oman’s Sultan Haitham Bin Tarik, has been brought about to achieve the objectives set out in the country’s Vision 2040 national agenda.

The legislation, divided into ten sections, covers employment regulations, contracts and obligations between employers and workers. It sets guidelines for working hours, leave allowance, remuneration, employment of Omanis, occupational health and safety, and labour unions. It also delves into the settlement of labour disputes and related punitive measures.

His Majesty Sultan Haitham bin Tarik issues Royal Decree No. 53/2023 on the promulgation of the Labour Law.https://t.co/1dhhJX7UYX pic.twitter.com/cN3yXJ4oLq

— Oman News Agency (@ONA_eng) July 25, 2023

The new decree will override Royal Decree No. 35/2003 which has regulated the country’s labour market. The decree will be published in the Official Gazette and enforced from the day following its date of publication, reported Oman News Agency.

Omanisation

• Employment is an intrinsic right for Omanis
• Each establishment will be obliged to disclose an annual plan for localisation of the workforce. This will have to be published at the workplace and on its official website, which also should have detailed reports on the number of Omani workers, their salaries, their gender, and any information about job vacancies, if available.
• Devise a plan incorporating the appointment and training of Omanis for leadership roles and ensure its effective implementation
• 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.

Women in the workforce

• Working women’s privileges include an allocated hour each day for child care and a 98-day maternity leave provision. Women will be allowed 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 there are more than 25 women in the workplace

Leaves

• A seven-day paternity leave and a 15-day caregiver leave for accompanying a patient additionally, the number of sick leave days has been increased
• It is permissible to grant the worker, at his request, a special leave without pay

Productivity

• 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. The clause would boost productivity within the establishment and promote competition among workers.
• Law permits the employer to allow a worker to work temporarily for another employer to ease business operations and mitigate the cost of recruiting foreign labour
• Oblige the business owner to establish a performance appraisal system in his establishment

Worker rights

• Transferring the worker from working during the night hours to the daytime hours in case it is proven that he is unable to work during them.
• Eight working hours interspersed, not including the rest hour
• A requirement not to prejudice the rights of the worker in the event that he is assigned a work not agreed upon.
• Organising work in specific sectors according to the working conditions in each sector creates stability in the work in the establishments

Nabhan Ahmed Al Batashi, chairman of the General Federation of Oman Workers, said, “The issuance of the labour law comes at an important stage during Oman’s renewed renaissance led by Sultan Haitham bin Tarik. The law gives special importance to the social and economic aspects to keep pace with aspirations of Oman Vision 2040. The law aims at creating an attractive and interactive labour market that keeps pace with demographic, economic, and cognitive changes.”

He added, “The labour law addresses gaps and differences in practices and procedures related to the application of the previous Labor Law. The law gives a broader contribution to organizing some sectors according to the requirements of each stage.”