Oman enacts a new Labour Law
New employment rules and provisions are introduced with the enactment and enforcement of the new Oman Labour Law (Royal Decree No. 53 of 2023). For example, the introduction or remote work type, which was not applicable or existing under the old labour law (Royal Decree No. 35 of 2003).
Below are highlights of the key changes the new law introduced:
A. "Omanization":
Oman is similar to other GCC States. The inclusion of the Omani workforce in the private sector is one the main priorities of the Omani government. Hence, some provisions of the new law reflect this clearly. For instance, Article (18) of the new Law states that employment is a right of Omani nationals. In addition, Article (22) stipulates that the employer who hires 25 or more employees, shall abide by the government classification that allow the realization of omanization.
The Ministry of Labour will establish a system for jobs targeted with omanization policies and their percentage.
B. Compensation of unfair dismissal:
In the event the competent court finds that the termination of the employee was executed on unfair grounds, it can - in accordance with the provisions of the new law - upon its discretion decide either to:
- Re-instate the employee in his/her previous position; or
- Order the employer to pay the employee of compensation equivalent to no less than 3 months' full salary and not exceeding the equivalent of 12 months' full salary.
C. Annual Leaves:
While no changes were made to certain leaves, the annual leave is an example, the new law introduces new types of leave that did not exist under the old law. They are:
| Leave | Description |
| Paternity leave | 7 days |
| Accompanying leave | 15 days for Omani employees to accompany a patient with whom the employee has a marital or up to second-degree relationship |
| Unpaid leave for childcare for female employees | One year |
D. Working Hours:
The new law reduced the total number of working hours from 9 hrs/day to 8 hrs/day. As a consequence, the midday break, that was 30 minutes under the old law, has been increased to 1 hour by the new law.
Eyes are turned towards the Executive Regulations of the new law, which are yet to be issued. In the meantime, employers have 6 months to adjust their situation to comply with the provisions of the new law.
Nadim Al Jisr joined Thomson Reuters in 2014 as a Content Specialist, then moved to oversee the Westlaw Middle East platform and manage its growth. Nadim holds a Bachelor’s Degree in Law and has more than 10 years of experience as a legal consultant and litigator in Lebanon, Saudi Arabia and UAE. Nadim is native Arabic speaker and proficient in English and French. Nadim is currently completing his Master’s Degree in Law. Nadim is currently the Editorial Lead heading the MENA Content Team.