The Ministry of Labour in Oman issued two ministerial decisions to regulate wage protection and the temporary transfer of non-Omani workers within the private sector.

Analysis

The Ministry of Labour in Oman issued two ministerial decisions to regulate wage protection and the temporary transfer of non-Omani workers within the private sector.

Wage Protection System

The Ministry of Labour in Oman announced a new Wage Protection System (WPS) to electronically monitor the payment of wages in the private sector. The system mandates employers to transfer wages to employees’ bank accounts or financial institutions under the supervision of the Central Bank of Oman, as per the agreed employment contracts and within the legally specified timeframe.

Employers are required to update employment contracts to reflect any changes in wages and must transfer wages through the WPS within three days of the end of the wage period. The Ministry’s relevant department will oversee the implementation and monitoring of the WPS, maintaining a dedicated database.

Exceptions to the WPS include cases of labour disputes where the worker has stopped working for more than 30 days, suspension of the worker for reasons beyond the employer’s control for more than 30 days, and new employees who have not completed 30 days of service.

A committee will review exemption requests not covered by the specified exceptions. Administrative penalties for non-compliance include warnings, suspension of preliminary work permits, and fines of 50 Omani rials per employee, with increased fines for repeated violations. The decision also repealed the previous Oman Ministerial Decision No. 299/2023.

Workforce Transfer Regulations

The Ministry also introduced regulations for the temporary transfer of non-Omani workers between private sector establishments. Key conditions for transfer include not moving workers to nationalised professions, ensuring job compatibility, and obtaining worker consent. Workers must have completed at least six months with the current employer, and the work permit must remain active with more than six months until expiration. Transfers are limited to six months per worker annually, and both establishments must comply with nationalisation quotas and have no service suspensions or financial obligations to the Ministry.

The receiving establishment must not employ the worker beyond the transfer period and must honour all rights and obligations, including maintaining the worker’s previous wage and benefits through the WPS. If a worker leaves the receiving establishment, it must immediately notify the original employer and provide evidence of the departure. The original employer is required to report the worker’s departure following Ministry procedures. The transfer period will count towards the worker’s total service duration, ensuring the protection of their rights and continuity of service calculation.

The decision also stipulates the percentage of transferred workers should not exceed 50% of the total registered workers in either establishment, and the transfer must be officially registered with the Ministry using the approved form. The receiving establishment is responsible for not employing the worker after the transfer period and must bear all rights and obligations during this time, ensuring the worker receives at least the same wage and benefits as in the previous establishment.

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