jnobia108 - Business Law

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Oman Labour Law

RD.35/2003

Dr.K.Raghu Ram, SCT.

Basic Terminology

Ministry & Minister: Ministry of Manpower

The Directorate: Directorate of Labor or Labor office or its branches.

Establishment: Every undertaking which is run by natural person or a body corporate, employing one or more workers in consideration of wage.

Employer: Every natural or corporate person employing one or more workers in consideration of the wage.

Worker: Every natural person who works with the employer in consideration of wage and under his supervision and management.

Contract of Work: Every contract under which a natural person undertakes to work for the interest of an employer and under his management and supervision in consideration of a wage.

Overtime Work: The work that is performed in hours which exceeds the working hours prescribed by this law.

Basic Salary: The agreed CASH consideration between the employer and the worker in addition to periodical increments, if any.

Gross wage: The basic wage plus all other allowances.

Dr.K.Raghu Ram, SCT.

Basic Terminology ……contd..

Probationary Period: A period during which the suitability of worker is being assessed, either from technical or moral point of view and which enables the worker to become acquainted with the conditions of the work.

Continuous Service: The uninterrupted service with the same employer or his legal successor and the periods of absence approved by the employer, shall not affect the continuity of the service.

Year: 365 days from the date of signing the contract unless otherwise agreed.

Month: 30 days unless otherwise provided.

Labour Disputes: Any dispute between the employer and the worker, relating to: employment of the worker, terms of service or conditions of work.

Working hours: The time during which the worker is at employer’s disposal, and does not include the period of rest.

Night working hours: The time between 09:00 p.m and 05:00 a.m. during which the worker is at employer disposal.

Juvenile Employee: Every natural person who has reached the age of fifteen but has not reached the age of eighteen. (between 15 and 18)

Dr.K.Raghu Ram, SCT.

General Provisions

a) The provisions of this Law shall not apply to:
Members of the Armed forces, public security organizations, employees of state administrative apparatus and other government units.
Members of the employer's family who are dependent upon him.
Domestic servants working inside houses or outside houses such as drivers, maids, cooks and those of similar jobs.

The Minister shall by his decision issue the rules and terms of work relating to these categories. (Labor Law Code, Article-2)

b) All foreign branches of establishment and expatiate who work here are subject to provision of this law.

Dr.K.Raghu Ram, SCT.

General Provisions ……contd..

c) The officials designated by the Ministry of Justice in coordination with the Ministry of Manpower shall have the authority to carry judicial investigation for the implementation of the law. The rules and procedures for the regulation of their work shall be specified by a decision to be issued by the Minister. The powers and duties of officials are

Right to enter the place of work.

Inspect books, records and papers

Does not disclose work secrets or any information even after they leave the job

d) Duties of Employers with regard to inspection officials

1) Provide facility to officials to discharge their duty

2) Provide all data and information required by the officials.

3) Not to Delay in giving data or obstruct the officials from discharging their duties.

Dr.K.Raghu Ram, SCT.

Employment of Citizens..

The employer shall employ the Omani workers to the maximum possible extent. The ratio of Omanis to the foreigners in each sector shall be determined by the Minister. (Labor Law Code.Ar-11)
Employer shall ensure the equality of all workers when the nature and conditions of their work are similar. Any Omani who is fit and wants to work may apply for registration of his name with the relevant directorate and give details of his age, qualifications, experience, preferences and the work he desires to join in addition to any other information as may be determined by the Ministry.
Such department shall register the applications in serial numbers upon receipt thereof and shall give the applicant an acknowledgement of registration in the form specified by the Ministry.

Dr.K.Raghu Ram, SCT.

Details of employment

Details to be sent to the Directorate: The employer or his representative should send the following to the relevant directorate in January every year, as prescribed by the Minister:
1. A detailed statement on the number of his workers classified according to the types of their jobs, occupations, their wages and gender.
2. A statement of the reasons for not filling the vacant posts and occupations which have fallen vacant or have been created during the past year if any.
3. A statement on the status of work conditions and anything related thereto in respect of employment opportunities and the expected increase or decrease in their number during one year.

Dr.K.Raghu Ram, SCT.

Regulations of Foreigners employment

The employer is prohibited from bringing forward non-Omani workers unless he has obtained a permit from the Ministry. The grant of such permit shall be subject to the following conditions: (Ar-18)

Insufficient work force for the posts or occupations from the Omanis :

that the employer has complied with the prescribed percentages of Omanization; and

payment of determined fees.

Dr.K.Raghu Ram, SCT.

Regulations of Foreigners employment…contd

A non- Omani is prohibited from joining any work in the Sultanate before obtaining a labor card, the grant of which shall be subject to the following conditions:
that the employee has the professional competence or technical skill or the qualification needed by the country;
that the employee has entered the country in a lawful manner and satisfies the Foreign Residence Law
that the employee is medically fit and free of such contagious and chronic diseases as may be specified by the Ministry of Health;
Payment of the prescribed fees.

After satisfying the above conditions, the labor card shall be granted upon the employer’s request.

Dr.K.Raghu Ram, SCT.

Regulations of Foreigners employment…contd

The Minister will decide on some of the issues given below (Article 19)

The Cabinet of Ministers will approve the fees for the license to Non Omani employees with proper fees structure for granting and renewing labour card in discussion with Ministry of Finance.
The duration of the labour card form.
The jobs and business, which Non-Omanis will not be allowed to practice.

Dr.K.Raghu Ram, SCT.

Regulations of Foreigners employment…contd

No person will be allowed to practice business in Oman by supplying foreign employees unless he obtains a specific license from the Ministry.
Minister will specify the conditions which must be fulfilled for obtaining the license, rights and obligations of the license.
The licensee has obligation to return the employee back to the place from where he was brought, if it is proved that the employee does not satisfy the conditions provided for in the contract.
The employer should bring foreign employees without taking any money from such employees.

Dr.K.Raghu Ram, SCT.

Contract of work

I) The contract of work should be in writing and issued in Arabic of two copies, one copy for each party.

If the contract is written in a language other than Arabic, one copy in Arabic shall be annexed and approved by the two parties to the contract.

If there is no written contract of work, a worker may establish his rights by all means of proof.

The employer should give a receipt for the documents and certificates deposited by worker, with him

Dr.K.Raghu Ram, SCT.

Contract of work….contd

II) Information to be provided in the contract of work

Name of the employer and establishment and address.

Name of the worker, his date of birth, qualifications, job or occupation, place of residence and nationality.

The nature and type of work and duration of the contract.

The basic salary and any allowances, privileges to which the worker is entitled, and the method and time of payment.

Notice period to close the contract by both parties. This should be as per law.

Any other particulars to be specified by the law.

Dr.K.Raghu Ram, SCT.

Contract of work….contd

There should be an undertaking from the worker attached to the contract, which includes the following:

That he will abide by the terms and conditions of work as provided in the contract.

To respect Islamic religion, the laws, customs and social traditions of the country.

Not to engage in any activity that is detrimental to the country’s security.

Dr.K.Raghu Ram, SCT.

Contract of work….contd

III) Probation Period

The maximum period of probation for employees whose wages given monthly is 3 months, for others 1 month.

The period of probation should be clearly written in the contract.

During probationary period, either employer or employee may close the contract by giving at least 7 days notice.

Dr.K.Raghu Ram, SCT.

Disciplinary procedure

If there are 15 or more workers employer should clearly display at common places, the penalties, regulations and conditions of imposition.

The Ministry may issue, the models of disciplinary regulations for the guidance, to different establishments .

A worker cannot be accused of a violation of rules after the expiry of fifteen days from the discovery (date of identification of his act). (Action on indiscipline should be taken within 15 days)

Dr.K.Raghu Ram, SCT.

Labour law - Disciplinary procedure….

Disciplinary penalty should not be imposed on a worker after more than 30 days from the date of proving the violation, for workers who take their wages monthly, and more than 15 days in the case of other workers.

In all cases one penalty for a single violation only.

Total amount of fine in a month cannot exceed 5 days wages of the worker.

If a worker makes a wrong inside the place of work, he may be suspend from work for not more than 3 months. During suspension period- first month – No salary…………Second & third months- Half gross salary.

If trial is not conducted or suspension period expired but no offense is proved, or acquitted, he should be reinstated and previous unpaid salary should be paid

Medical facilities

If number of employees is more than 100 – a qualified nurse should be there to carry out first aid and also doctor should be visited to treat the worker and medicines to be given free.

If there are 500 or more – specialist doctor, surgery and all other facilities for treatment should be given in free of cost. Dental, Ophthalmic and maternity treatment are exempted.

If the worker is treated in a government or private hospital, the employer should bear the cost of treatment and medicine.

Dr.K.Raghu Ram, SCT.

Other facilities

Transport, Accommodation, Meals & Drinking Water:

An employer, who practices work in such regions as may be specified by a decision of the Minister, is obliged to provide his workers with suitable means of transport, appropriate accommodation, meals and drinking water in places equipped for such purpose, and within easy reach of the workers.

Dr.K.Raghu Ram, SCT.

Gratuity

On the termination of the work of the workers who are not beneficiaries of the Social Insurance Law, the employer shall pay the worker a post service gratuity in the amount of the wage of fifteen days for each year of service for the first three years, and the wage of one month for each of the following years.

The worker shall be entitled to the gratuity for a fraction of the year proportionate to the period of his service and the last basic wage of the worker shall be considered the basis for the calculation of the gratuity.

Gratuity shall not be payable if the service is less than one year.

Dr.K.Raghu Ram, SCT.

Gratuity - Example

Akbar has worked in a company from 1st April 2009 to 31st October 2016. At the time of joining, his basic and gross pay was OMR 400 and OMR 600, respectively. At the time of retirement, his basic and gross pay was OMR 1,400 and OMR 1,800 respectively. You are required to calculate the total gratuity amount payable to him?

For the purpose of calculation of Gratuity, basic salary is only to be taken

When we consider basic salary, basic salary at the end of service is to be taken

Akbar worked from 1-4-2009 to 31-10-2016

That means he worked for 7 years and 7 months

Dr.K.Raghu Ram, SCT.

Gratuity - Example

Akbar's basic salary at the time of retirement is RO. 1400

As per Law, first 3 years, 15 days basic, I.e. 1/2 basic. After 3 years, full basic

Dr.K.Raghu Ram, SCT.

From 1-4-2009 to 31-3-2012….3 years is 1/2 of Basic

1400/2x3

2100

From 1-4-2012 to 31-3-2016….4 years is Full Basic

1400 x 4

5600

From 1-4-2016 to 30-10-2016….7 months

1400/12x7

816.6

Total Gratuity payable to Akbar at the time of retirement

8516.6

Dr.K.Raghu Ram, SCT.

Forfeiture of Gratuity

The employer may dismiss the worker without prior notice and without end-of-service gratuity in any of the following cases:

If he assumes a false identity, or if he resorts to forgery to get the job;

If he makes a mistake leading to a heavy financial loss to the employer (to take action, the employer should notify the incident within three days from the date of his knowledge of its occurrence the relevant directorate);

If he, in spite of being notified in writing does not comply with instructions, the compliance is necessary for the safety of workers or the workplace;

If he absents himself from his work for more than 10 days without reasonable cause during one year or for more than 7 consecutive days provided that such dismissal shall be preceded by a written notice to him from the employer after his absence for five days in the first case.

Dr.K.Raghu Ram, SCT.

Forfeiture of Gratuity……contd

If he discloses any secrets relating to the establishment in which he works.

If the employee committed an offence or felony (crime) for breach of honor or trust or a crime committed in the work place.

If he is found in a drunken state or under the influence of drugs, in the working hours.

If he commits an assault (Physical attack) on the employer or a manager or on any of his superiors or a colleague and as a consequence thereof sickness or delay from the work for a period exceeding ten days occurs

If he commits a grave breach of his obligation to perform his work as agreed upon in his contract of work.

Dr.K.Raghu Ram, SCT.

Leaving the work within the contract period

The worker may abandon the work before termination of the contract period and retain his full rights after giving notice to the employer of so doing in any of the following cases:

If the employer or his representative has defrauded him in respect of terms of employment at the time of entering into the contract of work;

If the employer does not perform his duties towards the worker as per Labour law or the terms of the contract;

If the employer or his representative commits an immoral act against the worker or any member of his family;

If he is assaulted by the employer or his representative;

If there is a danger or threat for the safety or health of the worker, which employer knows and did not take any step to avoid the danger.

For all the above reasons, the worker leaves the employers should pay the gratuity.

Dr.K.Raghu Ram, SCT.

Reason for termination of contract

The contract of work shall terminate in any of the following cases:

The expiry of its period or completion of the work agreed upon;

The death of the workers;

Disability of the worker to perform his work;

Resignation or dismissal of the worker or abandonment of the work in accordance with the provisions of this law;

Sickness of the worker to an extent that compels him to discontinue his work for a continuous or an interrupted period of not less than ten weeks during one year.

Dr.K.Raghu Ram, SCT.

Service certificate & Return of Documents

The employer shall give the worker, upon his request, at the end of the contract, an end of service certificate free of charge, wherein he shall state the date of worker’s joining the service, date of leaving it, the type of work he was performing, and the wage and other remuneration and privileges, if any.

The employer shall return to the worker all such documents and certificates which he might have put in the employer’s custody.

Dr.K.Raghu Ram, SCT.

Wages, leaves

and

working hours

Dr.K.Raghu Ram, SCT.

Wages (Art. 49 – 60)

Wages and other amounts to which a worker is entitled shall be paid in the currency legally in circulation (Omani Rial) (Art-49)

The Council of Ministers shall determine the minimum wages according to the requirements of the economic circumstances and may determine a minimum limit of wages of a specific category of workers who are occupying jobs or occupations, the conditions or nature of the work of which necessitate such determination. (Art-50)

Wages shall be paid on a working day and at the workplace and the wage shall be paid within seven days from the end of the wage period. (Art-51)

If the employment relationship has terminated, the wage and all the amounts due to the worker shall be paid to him forthwith (immediately).

If the worker has stopped the work on his own, the employer shall pay the worker his wage and all his entitlements within a period of 7 days from the date on which he has abandoned the work. (Art-52)

Dr.K.Raghu Ram, SCT.

Wages ……contd

If the employer transfers the worker’s salaries to a bank account, the liability of the employer towards the payment of the workers wage shall be discharged. MOM may exclude this provision for some workers. (Art-53)

The wages, rights, other benefits and all amounts payable to the worker or to his beneficiaries according to the provisions of this law shall have priority over all debts owed by the employer except the amount of alimony adjudicated by Sharia Courts. (Art-54)

The employer has duty to repatriate a non-Omani worker to his country upon termination, at his expense, unless the sponsorship of such worker is transferred to another employer. If the employer declines to do so, the government should repatriate the worker at its expense and the money should be recovered from the employer. (Art-56)

Dr.K.Raghu Ram, SCT.

Wages ……contd

The employer shall not transfer a worker who earns a monthly wage to a category of daily workers, or to a category of workers who earn weekly wages, or on a piece basis, or on an hourly basis except with the written consent of the worker. (Art-57)

The employer shall not deduct more than 15% of a worker’s wages towards repayment of any money borrowed by him during the period of the contract, nor shall the employer charge any interest on such loans and the same rule shall apply to the wages paid in advance. (Art-58)

If the shift worker or a worker whose wage is determined on an hourly, daily, weekly, half monthly or monthly basis, absents himself from work without permission or an acceptable excuse, he shall not be entitled to a wage except for the hours he has actually worked. (Art-60)

Dr.K.Raghu Ram, SCT.

Leaves (Art. 61 – 65)

The worker can take 1 month leave every year with gross wage. This is allowed after completion of 6 months of continuous service with the employer.

The worker can take an emergency leave for six days in an year with full salary.

If the worker takes leave and works with another employer, the original employer can stop paying wages for the leave period.

The worker should be paid his Gross wage for holidays for festivals and other official occasions. (Ramadan, Eid, National Day etc.)

If an official holiday coincide with a weekly paid rest day, the worker shall be compensated thereof by another day. If the official holidays fall during the period of annual leave, the worker is not be entitled to any compensation.

If a worker works on an official holiday, he should receive an additional 25% of his daily Gross Wage, or should get a rest day as a substitute.

Dr.K.Raghu Ram, SCT.

Leaves – Sick leave

The worker who suffer from illness can take sick leave of not more than ten weeks during one year irrespective of whether it is divided or continuous. His illness should be certified by the authorized doctor. Sick leave will be granted as follows:

The first and second weeks with Gross Wage. (Full gross wage)

The third and the fourth weeks with three quarters (3/4) of the Gross Wage.

The fifth and the sixth weeks with a half (1/2) of the Gross Wage.

The seventh week and up to the tenth week with a quarter (1/4) of the Gross Wage.

The sickness shall be proved by a medical certificate and in case of dispute; the matter shall be referred to the Medical Commission provided for in Section 43 of this law.

A sick worker may exhaust his annual leave besides the sick leave he is entitled to.

Dr.K.Raghu Ram, SCT.

Sick Leave - Example

Riyaz, an employee of a company is drawing a monthly salary of OMR 2500. He met with an accident on 1st April 2018 and could not attend the work for 35 days. Calculate the amount of wage to be paid for the sick period.

Dr.K.Raghu Ram, SCT.

Riyaz took 35 days. That means (35/7)	=	5 weeks
Monthly Salary of Riyaz	=	2500 RO
Salary for each week	=	2500/4	= 625 RO

Dr.K.Raghu Ram, SCT.

Sick Leave - Example

As per law for 1 & 2 weeks- Full wage

Dr.K.Raghu Ram, SCT.

As per law for 3 & 4 weeks- 3/4 of Gross wage

As per law for 5 & 6 weeks- 1/2 of Gross wage

Hence salary for 1 & 2 weeks

625 x 2

1250

Hence salary for 3 & 4 weeks

1250 x 3/4

937.500

Total amount of wages payable to Riyaz for his sick period =

2500.000

Hence salary for 5th week

625 x 1/2

312.500

Dr.K.Raghu Ram, SCT.

Leaves – Special leave

The worker is entitled to a special leave with Gross Wage as follows:

Three days in case of his marriage. It is granted only once throughout the period of his service.

Three days in case of the death of a son, daughter, mother, father, wife, grandfather, grandmother, brother or sister.

Two days in case of the death of an uncle, or an aunt.

Dr.K.Raghu Ram, SCT.

Special leave …..contd.

Fifteen days for the performance of Al-Haj [pilgrimage] once throughout the period of his service, provided that he has completed one year in the service of the employer.

Fifteen days during the year for the purpose of sitting for examination in case of an Omani worker who is an associate student with one of the schools, institute, colleges or universities.

One hundred and thirty days for the working Muslim wife in the event of her husband’s death.

For 2, 3, and 6 proof of death from the relevant authority should be produced.

Dr.K.Raghu Ram, SCT.

Working Hours

The worker is not allowed to work for more than 9 hours a day and 45 hrs a week with at least half an hour breaks for taking food and rest. Maximum working hours including over time cannot exceed 12 hours in a day.

The maximum working hours during the month of Ramadan shall be 6 hrs a day or 30 hrs a week for Muslim employees.

The working hours shall be separated by one or more intervals, which shall not be less than half an hour. The continuous period of work shall not exceed six hours.

If the worker works for more than specified, the employer should either pay him overtime wages, plus at least 25% or to grant him leave for extra hours of work.

Dr.K.Raghu Ram, SCT.

Working Hours

The employer shall grant the worker a weekly rest of not less than 2 days after five consecutive working days.

The employer shall pay the worker in the cases provided in the above section and additional wages equivalent to the wage he used to get for the additional work plus a minimum of 25% for the additional daytime working hours, and 50% for the nocturnal (night) working hours.

Dr.K.Raghu Ram, SCT.

Employment of Women (Art. 80 – 85)

All provisions regulating the employment of workers shall be applicable to women workers also.

Women shall not work between 9 pm and 6 am. Minister can give certain exemptions.

Women should not undertake hard work or harmful to the health or any other works specified by the Minister.

A woman who has completed 1 year of service is entitled to maternity leave for a period not exceeding 50 days with gross wage but this leave is restricted to 3 times with same employer.

If a woman is absent to work due to pregnancy or delivery, the employer shall not dismiss her. The total period of absence not exceeds 6 months.

An employer who employs one or more women workers shall keep in the workplace a copy of the regulations of employment of women.

Dr.K.Raghu Ram, SCT.

Thank you

Dr.K.Raghu Ram, SCT.