Mass termination of Omani employees from private sector not allowed

Mass termination of Omani workforce from private sector establishments in Oman will no longer be allowed even if a company face bankruptcy or closure, according to the Ministry of Manpower.

This decision is among others issued by the Ministry in order to address and find solutions to the issue of forcibly ending the services of the national workforce in the private sector.

The new decisions are aimed at the government’s actions towards stabilising the national workforce and guaranteeing their continuity in the work place.

The first decision establishes a committee headed by the Undersecretary for Labour Affairs of the Ministry of Commerce and Industry, the Ministry of Oil and Gas. The committee will also include the CEO of the National Employment Center, Director-General of Budget and Contracts at the Ministry of Finance, the president of the General Federation of Oman Trade Unions, the concerned general manager at the Ministry of Manpower, and the vice-Chairman of the Chamber of Commerce and Industry – economic affairs and branches.

The committee will be tasked with examining the end-of-service of the national workforce in the private sector enterprises and find appropriate solutions and mechanisms for it.

The second decision stipulates the powers of the committee and its mechanism of work and forms a task forces to deal with the same issue in all governorates:

Article 1 of the second decision states, “Private sector companies and institutions may not terminate the services of the national workforce collectively if they face bankruptcy, closure or completion of the projects. They should inform the committee three months in advance of the reasons for termination, detailed statements of the national workforce whose services and qualifications and practical experiences are required to be terminated, and any other information that the committee deems necessary to review in order to ensure the availability of appropriate work for them.”

In the case of the bankruptcy or closure of the company in accordance with the law, the conditions of the national workforce will to be addressed by giving them priority in finding opportunities with suitable work. furthermore, the company will be obliged to deport all of its expatriates manpower.

The decision included addressing the project’s transfer from one management to another by applying Article (48) of the Labor Law. In this case, the national workforce will be transferred to the new company according to the committee’s decision.