Oman’s Ministry of Labour recently issued two resolutions enabling employers to pay reduced fines to avoid legal action, and authorising regulators to prohibit employers from issuing or renewing work permits for migrant workers.
According to the newly enacted Ministerial Resolution (No. 451/2024), employers who violate the labour law may, upon request, reach a settlement with the Ministry to avoid lawsuits, provided they pay a fine equal to a quarter of the maximum penalty prescribed for the offence. Once the reconciliation request is approved, the violator must pay the stipulated fine within fifteen days of the approval. Failure to do so will result in the reconciliation being deemed void.
For violations related to nationalisation (Omanisation), employing “absconding” migrant workers, or hiring workers who entered Oman irregularly, the violator must pay a fine of OMR 1,000 (US$ 2,597) to have their settlement approved and avoid proceeding with a lawsuit.
Oman’s new labour law enforces stricter measures for Omanisation and significantly increases penalties for non-compliant employers. Offenders face imprisonment for periods ranging from 10 days to one month, and fines of OMR 1000 (US$ 2,598) to OMR 2,000 (US$ 5,196) per worker for violations. The resolution also states that reconciliation does not absolve the violator of their liability. The violator is required to “correct the violation and fulfil their legal obligations within 30 days from the date of reconciliation.”
The resolution specifies that non-Omani workers involved in the above cases must be deported and banned from re-entering the Sultanate, with the employer responsible for covering the costs of the deportation.
While employers face reduced penalties for labour law violations, the new regulations disproportionately harm migrant workers, who are often victims of these offences. Migrant workers, many of whom have invested substantial sums to secure employment in Oman, are now facing deportation without recourse, leaving them with significant financial losses.
Ministerial Resolution No. 450/2024 empowers the director of the competent department to suspend all or some of the services provided to private sector establishments if a violation is proven. These services include:
- Issuing work permits for non-Omani workers
- Renewing work permits for the violating worker
- Modifying or registering data for the offending worker
- Transferring the services of the violating worker
- Filing or cancelling “absconding” reports
The suspension of these services will be lifted once the violation is corrected and any imposed fines are paid, by the decision of the department director or their designated representative. While employers who violate the law should be barred from recruiting new workers, restrictions on renewing permits, transferring workers’ sponsorship, and cancelling absconding reports only harm workers. Expired permits, working for someone other than the sponsor, and absconding charges all result in workers falling into an irregular status, for which they face detention and deportation. Since the beginning of 2024, nearly 12,000 migrant workers have been detained in Oman, with over 9,700 deported for violations of labour laws and due to Omanisation policies.
In Oman and other Gulf States, the kafala system entraps workers in a cycle of exploitation, effectively making them both the victims and scapegoats of their employer’s abuses.
