GULF REGIONAL LEGAL
ENVIRONMENT OF BUSINESS
THE OMANI LABOUR LAWS
At the end of this topic, you are expected to:
Know how the nature of employment
Understand the nature and difference
between fair and unfair dismissal;
Explain the rights and duties of employers
An Employer must employ Omani employees to the
greatest possible extent. A decision from Minister will
specify the percentage of Omanis to expatriates in the
different economic sectors or activities of each sector
according to the requirements of the circumstances
and activity of each sector or according to the
availability of the required Omani employees.
Employers must put all employees on the same footing
when the nature and conditions of their work are alike.
An employer is not allowed to bring non-Omani
employees into the Sultanate of Oman unless he
obtains permits from the Ministry.
And the conditions for granting permits are:
There must not be enough Omani employees for the
required job or occupation.
The employer must observe the specified percentage for
Payment of the specified fees.
Non -Omanis are not allowed to join any work in the
Sultanate before obtaining Labour cards. The
Conditions for obtaining Labour cards are:
Possession of professional qualifications or technical
skills or qualifications required by the country.
The employer is permitted to bring in the employee in
accordance with the first paragraph of this Article.
The employer must have entered the country by lawful
means and satisfied the conditions provided for in the
Expatriates Residence Law.
The employee is medically fit, free from infectious
diseases and chronic diseases, as specified by the
Ministry of Health.
A Labour card will be granted upon the request of the
An employment contract – is normally a
written legally binding agreement that is
signed by an employer or his authorized
representative and the employee or worker
where the vital conditions of service are
mentioned and agreed upon.
If there is no written contract the employee may
prove his rights by all means of evidence.
The contract of employment must, in particular, include
the following information:
the name of the employer and the address of place of work;
the name of the worker, date of birth, qualifications, job or
occupation, place of residence and his nationality;
the nature and type of work, and the period of the contract;
the basic salary, allowances or advantages to which the
employee would be entitled under the conditions of service
and the mode and time of payment of the salary agreed
the suitable period of notice which must be given by the
party who wishes to terminate the contract. Provided that
the period of notice, which the employer gives to the
employee must not be less than the period provided for in
Any other conditions determined by the law:
The contract must be accompanied by an undertaking
from the employee which must include the following:
To abide by the terms and conditions stipulated in the
To respect Islamic religion, the laws of the country, its
customs and social traditions.
To refrain from interfering in any activities prejudicial to
the security of the country.
Like any other contract, an employment
contract must contain the elements of
of the minds (Offer & Acceptance)
party consideration (time, knowledge,
experience, exchange of money;
of pressure, intimidation or
An employee shall:1. Perform the work according to the directions and
supervision of the employer and in accordance with what
is specified in the contract, the law and the work
systems. He shall exercise, in carrying out his duty, the
care and diligence of the ordinary person.
2. Obey the employer's instructions in respect of the work
agreed upon if such instructions are not inconsistent with
the contract, the law and morals and if the obedience of
such instructions will not expose him to danger.
3. Look after the means of production entrusted to him and
to exercise, in so doing, the care of an ordinary person
and shall take all the necessary measures for their
maintenance and safety.
4. Not disclose work secrets.
5. Undertake to continuously develop his skills and
experience professionally and culturally in accordance
with the rules and procedures established by the
6. Not use the tools of work outside the place of work
except after an approval from the employer and shall
keep such tools in their proper places.
7. Observe the instructions of safety and occupational
health adopted by the establishment whether pursuant to
the law or its executive rules and decisions or in
accordance with the rules and regulations of the work
and its instructions.
Article 28 - 29
The employer shall put in conspicuous place, a copy of
its rules and regulations, upon approval by the
Ministry of Labour Affairs. The R&R must include the
• Work organisation;
• The rights and obligations of employers and workers;
• The rules governing promotions and demotions;
• The specification of salary groups and allowances;
• The charter of discipline
An employee cannot be accused of an offence after
the expiry of more than fifteen days from the date
on which the offence is discovered, likewise no
disciplinary punishment shall be imposed on an
employee after the expiry of more than thirty days
from the date on which the offence has been
proved, in the case of employees who receive
their salaries on a monthly basis, and more than
fifteen days for other employees.
The employer may dismiss the employee without
notice and without paying end of service gratuity
in any of the following cases:1.
If the employee assumes a false identity or resorts to
forgery to obtain the employment.
If the employee commits a mistake which results in
grave material loss to the employer, provided that the
latter reports the incident to the concerned Directorate
within three days from the date of his knowledge of
If the employee does not abide by the instructions
which must be followed for the safety of the
employees and the place of work despite being
warned in writing, provided that such instructions are
made in writing and displayed in a conspicuous place.
If the employee is absent from work without
reasonable justification for more than ten
days in one year or more than seven
consecutive days, provided that the
employer gives the employee a written
warning after being absent for five days in
the first instance.
If the employee discloses the secrets of the
establishment in which he works.
If the employee is finally convicted of a crime
or misdemeanour involving breach of honour
or trust or a misdemeanour committed in the
place of work or while the work is being
If during the working hours the employee is
found drunk or intoxicated by a narcotic
substance or a mind stimulant. If the
employee assaults the employer or the
manager in charge or gravely assaults any of
his superiors during the work or because of
the work or if he beats one of his fellow
employees in the place of work and such
beating results in illness or discontinuation of
work for a period which exceeds ten days.
If the employee gravely breaches his
obligations to perform the work agreed upon
in his contract of employment.
Without prejudice to his right to claim all his entitlements
an employee may, after giving notice to the
employer; abandon the work before the expiry of the
contractual period in any of the following instances:
If the employer or the employer's representative uses fraud
on him at the time of contracting in respect of the terms
and conditions of work.
If the employer does not perform his substantial
obligations towards the employee in accordance with the
contract of employment.
If the employer or the employer's representative commits
an act contrary to morals against the employee or any
member of the employee's family.
4. If the employee is assaulted by the employer or
the employer's representative.
5. If there is a severe danger, which threatens the
safety of the employee or his health provided
that the employer is aware of the existence of
such danger and fails to take the prescribed
measures imposed by the concerned authorities
at the material time.
The contract of employment may expire in any of the
Upon the expiry of its period or by completion of the
work agreed upon.
Upon the death of the employee.
If the employee becomes incapable of carrying out his
Upon resignation or abandonment of work in
accordance with the provisions this law.
If the illness of the employee requires discontinuation
of work for a continuous or interrupted period of not
less than ten weeks within one year.
SUMMARY & CONCLUSIONS
In this lecture, we discussed some important
points of the Omani Labour Law. The most
important points here the elements of contracts.
We learned that employment in Oman is the
basic right of Omani people but we also
discussed employment of foreign nationalities
as provided by law.
Muna is employed as Secretary for XYZ Co. Ltd for a wage of RO.
200 for a 40 hours week, while other secretaries are getting
RO.300 for a 40 hours per week.
Muna is given an additional duty that is not mentioned in her
contract of employment. The additional duty is to drive a business
car which it does not have a safety belt and her job is to make
daily round trips to the head office and certain sub-stations.
Muna dislikes the frequent requests to make round trips, by
disobedience to direct instructions from her direct manager and
also by completing tasks given to her carelessly and
Her direct superior reported the problems to the Chief Executive
Officer who has the overall responsibility. He warned Muna for
the consequences of her disobedience, carelessness and
incompetence. Muna always replied by pointing out that the
company is asking her to do uncontracted jobs and to drive a
car without safety belt, which might force her to pay traffic
One day Muna arrived to find a dismissal letter on her desk with
immediate effect without giving her a notice. The reason given
in the dismissal letter was for being involved in a car accident,
which happened on the previous day and the business car
1. Is Muna’s dismissal fair?
2. Described the rights of the employer and the rights of Muna
under Oman Labour Law.
1. Oman Commercial Law (Royal Decree No.
2. The Commercial Companies Law (Royal Decree
No. 4/1974 6th Edition, 2007.
3. Foreign Capital Investment Law.
4. Primer on Investment Opportunities in the
Sultanate of Oman.
5. Law of Income Tax on Companies.
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