Oman is easily one of the fastest-growing economies in the Middle East. The government is diligently undertaking numerous development projects to improve the economy by modernising it. Oman is slowly becoming an active player in the international marketplace.
Oman continues to amend its commercial and financial practices in order to conform with the highest international standards. The government tirelessly works towards the betterment of the workforce legislation and economic atmosphere. Enhanced labour laws and advantageously regulate relationships with respect to employment has been the strategy used by the government. It helps create a balanced relationship between employers in the private-sector with the employees. Strict regulations regarding timely payment of salary and wages, adequate compensation, mandatory leaves, insurance, protection against unfair termination, etc are part of ensuring that the employees are taken care of. By regulating the code of conduct of the employees, Oman watches out for the employers as well.
All private sector employees must sign an employment contract with their Omani employer. The following details are required to be provided
- Full name as per birth certificate, DOB and permanent address
- Job description
- Duration of contract
In addition to the contractual agreements, the employee must respect the law, traditions and customs of Oman. He or she shall not engage in any activity that is deemed to be prejudicial to the morality or security of Oman.
If the contract does not clearly state the duration, it is assumed to be unlimited. The visa, however has to be renewed every two years and is not connected to the employment contract.
Secondment to Oman
Oman provides the opportunity between companies to hire the employees of one company to another company. This policy is termed as Secondment and popular between companies and not recognised under the Labour Law. Secondment allows employers to hire an expert from another company without going through the tedious procedure of obtaining visa clearances and the employment visa requirements.
While the Oman Labour Law does not expressly recognise Secondment, Secondment agreements are entered into regularly between the companies. The employment contract stipulates the exact period of employment beyond which the contract is rendered invalid. Omani employers who are either new to the establishment or starting new projects find this arrangement convenient to their requirements.
Secondment provides employers with the opportunity to pick skilled and talented resources suitable for the projects on hand. Seeing as some projects require staff only for a short period of time, secondment in Oman is the ideal strategy that can be applied.
According to the labour law, the employees are entitled to minimum benefits. This includes basic salary, adequate compensation and allowance as deemed fit by the employer. If there is a conflict, the employee can claim the higher benefit.
2-year ban on employment visa
According to Article 11 of the Foreigners Residence Law, for two years, it is prohibited to grant entrance visa for foreign labourers who have worked in Oman previously. To work under a different employer within the Sultanate of Oman, the employee must obtain a NOC from the previous employer.
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