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Legal environment of business 3, assignment help

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Legal environment of business 3, assignment help
Legal environment of business 3, assignment help

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GULF REGIONAL LEGAL ENVIRONMENT OF BUSINESS WEEK 13 THE OMANI LABOUR LAWS LEARNING OBJECTIVES At the end of this topic, you are expected to: 1. Know how the nature of employment contracts; 2. Understand the nature and difference between fair and unfair dismissal; 3. Explain the rights and duties of employers and employees. INTRODUCTION Article 11: 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. INTRODUCTION Article 18: 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: 1. 2. 3. There must not be enough Omani employees for the required job or occupation. The employer must observe the specified percentage for Omanisation. Payment of the specified fees. INTRODUCTION Non -Omanis are not allowed to join any work in the Sultanate before obtaining Labour cards. The Conditions for obtaining Labour cards are: 1. 2. 3. 4. 5. 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 employer. INTRODUCTION Article 21 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. EMPLOYMENT CONTRACT Article 23: The contract of employment must, in particular, include the following information: 1. 2. 3. 4. 5. 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 upon; 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 this law. EMPLOYMENT CONTRACT Any other conditions determined by the law: 6. 1. 2. 3. 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 contract; 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. EMPLOYMENT CONTRACT Like any other contract, an employment contract must contain the elements of contracts:  Meeting of the minds (Offer & Acceptance)  Two party consideration (time, knowledge, experience, exchange of money;  Legality  Capacity  Legal intent Absence of pressure, intimidation or misrepresentation EMPLOYMENT CONTRACT Article 27: 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. EMPLOYMENT CONTRACT 5. Undertake to continuously develop his skills and experience professionally and culturally in accordance with the rules and procedures established by the employer. 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. EMPLOYMENT CONTRACT 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 following: • 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 EMPLOYMENT CONTRACT Article 30: 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. DISMISSAL Article 40: 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. 2. 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 such incident. 3. 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. DISMISSAL 4. 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. 5. If the employee discloses the secrets of the establishment in which he works. 6. 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 performed. DISMISSAL 7. 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. 8. If the employee gravely breaches his obligations to perform the work agreed upon in his contract of employment. DISMISSAL Article 41: 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: 1. 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. 2. If the employer does not perform his substantial obligations towards the employee in accordance with the contract of employment. 3. 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. DISMISSAL 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. DISMISSAL Article 43: The contract of employment may expire in any of the following events:• 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 work. • 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. TUTORIAL ACTIVITIES Case Study 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 incompetently. TUTORIAL ACTIVITIES 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 fines. 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 being scrapped. Questions: 1. Is Muna’s dismissal fair? 2. Described the rights of the employer and the rights of Muna under Oman Labour Law. REFERENCES 1. Oman Commercial Law (Royal Decree No. 55/1990). 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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Final Answer

Omani Labor Laws


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© 2016

Law is defined by as “the whole system or set of rules made by the
government of a town, state or country.” (Merriam Webster, 2016) This means law acts as a
reference that guides individuals of a particular area on what is legal or illegal. On what is wrong
and what is good. On what should be done and what should not be done. When violated,
penalties must be faced by such individuals. Both traditional and modern societies depend on
laws for its normal operations. This is because it defines what is right and what is wrong. Every
law must have a penalty. Laws with severe penalties are rarely violated as compared to those
with light penalties. Laws play roles such as environmental protection, the growth of an
economy, social justice promotion, growth, and protection of individuals. The law cuts across the
protection of human beings and their activities. This means law treats the business as a separate
entity. Oman laws have three major sources, namely; Islamic laws, statutory laws and
international laws. The Islamic laws are generally the Sharia law that is applied in Sharia courts.
They are defined by the teachings in Quran, the sayings, and deed of Prophet Mohammed,
analogy reasoning and those that are scholarly related. An individual in Oman, whether Muslim
or not is expected to obey Islamic laws, however, international laws are also used to determine
the conduct of individuals at international level. This helps in good international relations and
diplomacy. International laws also apply to the entire business community—ranging from
individual to financial institutions. The laws that are made in the Omani parliament are called
statutory laws. Once they are passed, they are published in the government gazette. When a
particular law is violated, all the three sources are considered in order for one to be judged fairly.

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