At a glance
- On 24 July 2023, Oman issued a new labour law through the Oman Sultani Decree No.53 of 2023, repealing the previous Royal Decree 35/2023. The law came into force the day after its publication in the Official Gazette.
- The new law provides a range of benefits and rights to employees working in Oman, including provisions which clarify the circumstances in which an employee may be terminated.
- Royal Decree 52/2023 which issued the Social Protection Law was also published in the Official Gazette on 19 July 2023.
Royal Decree No. 53/2023
Below, we highlight some of the key provisions under the new Act.
Leave entitlements
- The daily working hour limit has been reduced to eight hours per day and 40 hours a week.
- Sick leave has been extended so that employees are now entitled to 182 days, subject to certain conditions. Pay entitlements for different points during the leave are as follows:
- During the first 21 days, employees will be entitled to full remuneration.
- From day 22 to 35, the employee must be paid 75% of their salary.
- From day 36 to 70, the employee must be paid 50% of their salary.
- From day 71 to 182, the employee must be paid 35% of their salary.
- All workers are entitled to 30 days of leave per year after they have completed six months of service. Non-Omani workers are also entitled to a return air ticket to use their leave and resume work back in Oman.
- Muslim female employees are entitled to 130 days of special leave in the case of the death of their husband. Non-Muslim female employees are entitled to 14 days.
- Maternity leave has been extended to 98 days.
- Female employees are entitled to one hour per day to take nursing breaks and an extra year of unpaid leave to take care of the child.
- In workplaces with more than 25 female workers, a special rest place must be provided for the employees.
- Paternity leave of seven days has been introduced, provided the child is born alive and the leave does not exceed the 98th day after the child's birth.
- If an employee is required to accompany a patient, who has marital or blood relations to them of up to the second degree, they are entitled to 15 days a year to do so.
- Employees enrolled in schools, institutes or universities will be given 15 days of study leave.
Terminations
- If an employee is terminated for reasons related to their pregnancy, childbirth or breastfeeding, the termination is declared invalid.
- Non-compete provisions, in the event an employee has access to confidential information or clients, will only be valid for two years and may only be issued in relation to the area in which the previous employer acts.
- Non-Omani employees have a right to remain in Oman, in the event a lawsuit has been field and until a decision is reached, without the employer having to bear any financial consequences.
- All workers have the right to submit claims to the competent authority within 30 days of their notification of termination.
- Provisions to ensure the safety of expat workers in the country have also been introduced. Employers may not keep workers' passports or private documents, without their written consent.
- Employers with more than 50 employees are required to have work regulations approved by the Ministry.
- Compensation, in the event of unfair termination, has been capped at the sum of an employee's total pay for 12 months, as opposed to the previous rule which stated the compensation, at a minimum, must equal the amount of total pay for three months with no cap.
- The employment contracts of non-Omani employees may be terminated to facilitate 'Omanisation' provided the employee replacing them is Omani.
Royal Decree No. 52/ 2023
On 19 July 2023, Royal Decree No.52/2023 was published, issuing the Social Protection Law. The new legislation re-shapes the social protection system in Oman.
Our team have created a document, focussed on the labour market, setting out the social security contributions and obligations of an employer, employee and the Social Protection Fund. You may access the summary here.
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