Legal Updates - February 3, 2014

RD 60/2013: Amending some provisions of Tender Law

Royal Decree No. 60/2013 issued and effective from 31 October 2013 amends certain provisions of the Tender Law. We are in the process of analysing the amendments and shall give a detailed update next month.

RD 61/2013: Amending some provisions of Social Insurance Law

Royal Decree No. 61/2013 issued on 31 October 2013 and effective from 1 July 2014 provides that the accrued pensions shall be increased by 5% for Omani nationals whose monthly pension is not less than RO 202.500 (Rials Omani two hundred two rials and five hundred baizas).

The RD further provides that the increase in pension shall not be applicable to the partial disability pension and the Government’s contribution to those shall be evaluated after five years from the date the decree is effective.

MD 541/2013: Minimum increase in Basic Salaries of Omani employees

Ministerial Decision No. 541/2013, issued and effective from 6 October 2013, provides for mandatory annual increase in basic salaries of Omani nationals working in private sector establishments of at least 3%. This increment shall be payable on the first of January every year.

The increment shall be paid to only those employees who have completed at least six months with the employer and shall have a good annual performance report. Employees who have been rated as underperforming in their annual appraisal may not be eligible to receive such annual increment.

MD 541/2013 supersedes the earlier MD 32/2012 and therefore all that contravenes or contradicts with this decision shall be abolished.

MD 550/2013: Temporary restriction on Issuance of work permits for Non-Omani workforce in certain sectors

Ministerial Decision No. 550/2013 issued and effective from 9 October 2013 seizes private sector establishments working in the construction and cleaning business from bringing non-Omani workforces in the Sultanate. The permits to bring non-Omani workforces shall be stopped for a period of (6) six months. The decision, however, is not applicable to: (i) an establishment registered under the excellent grade category, (ii) international and consulting grade companies, and (iii) establishments which carry out governmental projects.

MD 575/2013: Amending some provisions relating to MD 294/2006 on Management of Collective Negotiations, Peaceful Strike and Closure

Ministerial Decision No. 575/2013 issued and effective from 4 November 2013 prohibits establishments that provide public or essential services to the public to call or go on strike. This MD further provides that petroleum establishments, refineries, ports and airports also cannot call for a strike. The MD provides for a mechanism to resolve the labour demands of the workers of the above-mentioned establishments.