Labour Disputes

The law specifies that migrants who do not benefit from the provisions of the Social Protection Law, are entitled to a gratuity of not less than a basic salary for each year of service. Previously, the gratuity was half a month’s wage for each year for the first three years and a month’s wage per year for every subsequent year. The new labor law explicitly mandates a 60-day period during which the employer holds the responsibility to arrange the repatriation of migrant workers. Previously, the law noted no timeframe for repatriation. Importantly, migrant workers who initiate legal proceedings to recover their dues from the employer now have to retain the right to stay in Oman until the claim is decided upon. All costs associated with staying in Oman in such cases are borne by the worker.

The Cabinet approved a draft resolution to Regulate the Authority for Settlement of Individual Labour Disputes. The Authority will be attached to the Department of Labour Relations in the Ministry of Labour and Social Development. Its mission is to try to effect an amicable settlement between an employer and employee, on the condition that both parties consent to it and prior to resorting to the Judiciary. This is to reduce the number of cases presented to the Judiciary. The draft resolution specifies the organization and administration of the Authority as well as the requirements for settlement.

Ministerial Order No. 51 establishes the Migrant Workers Exit Permit Grievances Committee.