Oman: Contractual Changes Announced for Public Sector Employees

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Oman: Contractual Changes Announced for Public Sector Employees

Times of Oman, 27 February 2022: Oman’s Labour Ministry has announced public sector employees in the Sultanate will be offered fixed-term contracts.

They will be offered these contracts instead of open-ended contracts.

In addition, either the employer or employee can terminate the employment contract before its duration ends.

Employees can also be denied their annual bonuses if they are considered to have performed poorly at work.

The Decision was issued in line with Oman Sultani Decree No. 89/2020, establishing the Labour Ministry and determining its areas of competency.

Article 4 of the new Decision states: ‘Either of the two parties may terminate this contract before the end of the contractual year without giving reasons, provided that the other party is notified of this no less than three months prior to their termination. During this time, the second party will remain in service.

The first party may waive the right of the second party to continue working after they have been notified of termination, or will require them to continue working until the end of their notice period, if circumstances so require, provided this does not conflict with the interest of the work, and provided that this notice period is fully calculated within the actual service period of the second party.

The second party is entitled to periodic bonuses on the first of January each year, in the category prescribed to their pay grade, and equivalent to their financial allocations, provided that at least six months have passed since the date on which the contract was issued.’

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