Oman's New Labour Law to control Exploitation of Expatriate Workers

A new labour law, issued as per Royal Decree No. 35/2003 and published in the Official Gazette of Oman No. 742, dated May 3, 2003. The law consists of the following chapters. Definitions, general rules, employing citizens, employing expatriates, employment contract, wages, leaves, work hours, employing non-adults, minors, employing women, industrial security, mine workers, labour disputes, representative committees and punishment.

General rules

This law is not applicable to the armed forces, security and government departments and domestic servants such as cook or childminder. Any settlement against this law shall be invalid. Justice officials have the right to check the execution of the law. The worker’s right as per this law shall expire after one year from that time that right was awarded to him. Legal cases raised by workers are exempted from fees.

Employing citizens

Employers should employ Omani citizens to the maximum possible level.

Omanis may register their names for work in the department concerned, which provides career advice and work nomination. Employer should provide the department with a list of vacant jobs. Employer should have a list of Omanis working with him with details such as their names, salary and so on. Employers employing more than 50 workers shall recruit persons with special needs in suitable jobs.

Employing expatriates

Employers are prohibited to employ non-Omani workers without obtaining the proper permits from the Manpower Ministry. Non-Omanis are prohibited to work in Oman without having proper work permits.

Nobody is allowed to import foreign workers without having the proper licence from the Manpower Ministry. Employers are prohibited to make contract with anybody who does not have licence to import foreign workers. Employers or work contractors are prohibited to take any money from workers in return for employment.

Work contract

Signing contracts

If any of the two parties does not know the contract language the contract should be accredited by the authorised legal body. The contract should include personal details of the worker, nature of work, wage and end-of-contract notice. It shall also include a commitment from the workers to comply with the conditions in the contract, respect Islam, country’s law and traditions, and not to engage in activities harming the country’s security.

Test period should not exceed three months.

Employer should not violate the conditions in the contract or ask the worker to do works other than that agreed upon. Employer should keep a file for each worker, including his/her name, wage and so on.

Worker should personally carry out the work as per the contract, carry out the instructions of employer, protect work property and adhere to safety procedures.

Employers employing more than 15 workers should display a work statute showing duties and responsibilities of the worker and employers, salary groups, allowances and promotion system. Employer should also display disciplinary statute in the workplace, after confirming it by the Manpower Ministry. Worker shall not be accused of a violation after 15 days from its discovery. Employer shall not fine the worker more than five days’ wage per one violation.

Worker committing a crime at the workplace may not be suspended for more than three months, but if proved innocent, the worker shall return to work. Employer should provide workers with first-aid facilities at the workplace.

If employer has more than 100 workers in one place or one company, he should provide a nurse to treat them at the workplace and provide a doctor for medical treatment free of charge. If the number of workers exceeds 500, the employer, in addition to the above, should provide workers with all other medical care facilities, including specialists and surgery operations for free, with the exception of dental treatment, eye-testing and maternity expenses. If the worker is treated in a government or private hospital, the employer should bear the expenses for treatment, medicine and hospital stay.

Employer having workers in zones, specified by manpower minister, should provide workers with transport, accommodation food and water.Worker causing damage to employer’s propriety due to negligence should bear the cost of the damage.

If the contract has a specific period and the two parties continuing it after its expiry, it would be considered renewed for unspecified period of time.

If the contract has no specified period, each of the two parties may end it by giving 30 days notice, failure of which will lead to appropriate compensation.

The notice will not be valid during the worker’s leave period.

Workers not benefiting from social insurance are given end-of-service benefit (gratuity) which is equivalent to 15 days’ wage for each year of the first three years and a month’s wage for each of the following years, taking the final basic salary as a base for calculation.

The employer has the right to dismiss the worker without notice or gratitude in cases of fraud, commitment of a damaging mistake, failure to comply with safety conditions giving away work secrets, sentence in a crime, under the influence OF alcohol during work, attack on employer, director or fellow workers or major failure to carryout contract.

Worker has the right to leave work if employer uses fraud in the contract, employer fails to fulfil major contract obligations, employer attacks him/her and feels major threat at the workplace.

Leaving work for above reasons gives worker the right to compensation.

Work contract ends in case of end of contract, death of worker, worker’s disability to do the work, resignation, dismissal or leaving work according to this law and illness of worker for a period no less than 10 weeks in one year. The employer cannot end contract before the worker reaches 60 years of age at least.

 

Workers’ savings funds may be established after obtaining Manpower Ministry’s approval.

Employer should give worker at the end of contract an end-of-work certificate. Establishment’s dissolution or bankruptcy shall not prevent workers from receiving their rights.

Wages

Wages are given on a working day, at least once in a month.

All wages should be paid immediately at the end of work.

Employer cannot be free of responsibility unless worker signs receiving all wages agreed. Wages are given priority over payment of other credits due to be paid by employer. Worker shall not be obliged to buy items/products from employer’s shops/establishments.

Employer should return worker to his/her home country at the end of contract, unless he/she is transferred to another employer. If employer fails to do so, the labour department transports the worker on government expense and charges the employer. Employer is not allowed to transfer workers from monthly payment to weekly paid category without workers’ approval.

Employer cannot reduce more than 15 per cent of wage for repayment of a loan given to a worker and loans to workers shall not have any interest.

Workers paid on hourly basis shall get the wage of hours they actually worked, but he/she should be paid for hours he/she is absent because of going to court or public prosecution.

Leave

Worker has the right to 15 days’ paid leave for first year increased to 30 days for each successive year.

The worker has the right to a paid emergency leave of four days per year. The worker cannot abandon his/her leave. Worker has the right to full wage of public holidays and in case a holiday falls on worker’s weekly day-off it would be compensated by another day-off.

It is allowed to ask worker to work on official holidays in the interest of work and be paid his full day wage plus an addition of not less than 25 per cent or given a compensatory off. Worker is allowed a sick leave of not more than 10 weeks in one year.

Worker is entitled to a special paid leave in case of marriage (3 days), death of son, daughter, mother, father, wife, grandfather, grandmother, brother or sister (3 days); death of uncle or aunt (2 days); go to Haj (15 days) and for examination (15 days).

Working hours

Workers should not be asked to work for more than nine hours per day or 48 hours per week. Rest interval should be given during working hours, provided that work cannot be continuous for six hours.

If a worker is asked to work more than the working hours, the employer should give him/her extra pay equivalent to his/her wage for the extra period plus 25 per cent or give a permission to be absent for the number of hours he/she worked, provided that the worker agrees to this arrangement.

Employer should give worker not less than 24 hours rest after six days of work.

Employer should display at the workplace a timetable showing working hours and rest hours and send a copy of it to the labour department.

Employing minors

It is prohibited to employ any male or female under 15 years of age.

It is not allowed to employ minors who are less than 18 years old between 6pm and 6am.

Minors cannot work extra hours or be kept at workplace after working hours.

In case of employing a minor, the employer should display at the workplace a copy of the non-adult working rules, list of minors working and given an advance report on minors working at the establishment to the department concerned.

Employing women

Women cannot work between 7pm and 7am.

Women cannot work in jobs harmful to health or involving hard work.

Women are entitled to a six-week maternity leave, which, she could consider as maternity leave or sick leave.

Employer is not allowed to dismiss a woman because of illness due to pregnancy or child delivery.

Industrial facility

Employer should tell the worker in advance about the risks involved in work and protection measures.

Employer should provide all safety conditions.

Worker should refrain from damaging safety equipment and should comply with safety procedures.

The Manpower Ministry shall undertake inspection of safety requirements at workplace, and in case of danger should take appropriate measures against the firm concerned.

Employing workers in mines

Employer shall not employ workers in mining before ensuring medical ability.

Workers in mine should not be kept at work for more than eight hours.

In case of an emergency, the department concerned should be notified within 24 hours.

Employer should display safety procedures in a clear place and carry them out adequately, and carry out routine safety inspections.

Employer should prepare a rescue point.

Labour disputes

Employers employing over 50 workers should have a system for complaints and appeals, approved by the department concerned, stating the worker’s right to complain to the employer.

Dismissed workers have the right to ask the department concerned, within 15 days, to cancel the dismissal decision and the department has to take measures for cordial settlement. In case the settlement is not fulfilled, the labour department transfers the issue to the court concerned within two weeks. If the dismissal is unjustified, the worker would be reinstated and compensated.

Representative committees

Workers in any establishment may form a representative committee aimed at taking care of their interests and protecting their legal rights and representing them in all affairs concerning them. The representative committees in establishments may select a main representative committee representing them in local, regional and international meetings and conferences.

The manpower minister shall issue a decision on the rules of formation and functioning of the representative committee and main committee.

Punishments

Employer refusing to provide officials with information about his employees shall be imprisoned for not more than a month and fined not more than RO100 or both.

The illegal non-Omani workers shall be fined between RO10 and RO100, paying the expenses of returning to his/her home country and denying him/her import of non-Omani workers for no more than a year.

Non-Omani workers illegally working in the Sultanate shall be imprisoned for no more than a month and fined no more than RO100.

Employers allowing workers to work for another employer shall be imprisoned for no more than a month and fined for no more than RO200 for each worker or one of the two punishments, in addition to denying him to import non-Omani workers for no more than one year.

Employer not complying with Omanisation percentage shall be fined 50 per cent of average of non-Omani workers who represent the difference between the target and actual Omanisation.

Employer refusing to display a complaint system shall be fined no less than RO100 and no more than RO300.

Worker giving away company secrets shall be fined no more than RO100 and imprisonment no more than three months or one of the two punishments.

Persons obstructing officials undertaking responsibilities shall be fined no more than RO100 and imprisonment nor more than one month or the two punishments.