In a development of importance to private-sector employers and employees throughout the Sultanate, the Ministry of Manpower has recently issued Ministerial Decision No. 32/2012, which mandates annual salary increases for private-sector workers in Oman. MD No. 32/2012, which applies to all employees in the private-sector and became effective on 30 January 2012, entitles employees to a salary increase of at least 3% each year.
MD No. 32/2012 provides that, each year, every employee who has been working for his employer for at least six months as of January 1st of such year shall be entitled to receive an annual increase to his basic salary for such year equal to at least 3% of his previous year’s basic salary, with effect from January 1st of such year. However, employees who have been rated as underperforming in their annual appraisal for the previous year may not be eligible to receive such an annual salary increase for the new year. Please note that MD No. 32/2012 sets 3% as the minimum threshold for an employee’s annual salary increase, and is without prejudice to any terms more favourable to the employee stated in his employment contract.
Tuesday, May 22, 2012
Labor Law Update: New Ministerial Decision Requires Private-Sector Salary Increases
Wednesday, February 15, 2012
Health and Safety in the Workplace
In 2008 the Ministry of Manpower issued Ministerial Decision no. 286/2008 introducing the Regulation of Occupational Safety and Health for Establishments Governed by the Labour Law. The Regulation provides for a comprehensive regulatory framework with the aim of improving health and safety standards in the workplace and protecting workers from various occupational hazards. The Regulation consists of 43 Articles covering a wide range of issues including: lighting, ventilation, heat stress, noise, uniforms, personal protection equipments, first aid and occupational diseases.
In general, the workplace must support good health by promoting healthy food and physical activity in the workplace, prohibiting smoking in the workplace, and enhancing psychological health and social integration of workers.
Workplace Safety Issues
According to Article 15, the employer must take all necessary actions to provide adequate protection for the workers' safety while at the workplace.
Work uniform and equipment for personal protection must comply with the specified standards of safety required depending on the actual hazards the workers are being exposed to. The employer should train the workers on the best ways of using, maintaining and storing such equipment. Prominent signs in the relevant languages need to be posted in all hazardous areas where entry is prohibited without using personal protection equipment.
Most importantly, workers must not work on construction sites or open uncovered areas of high temperature at noon, from 12:30pm up to 3:30pm throughout June, July and August; subject to certain exemptions for establishments providing essential public services.
In dealing with the various hazards in the workplace, the Regulation provides a list of measures which employers need to implement to minimise occupational accidents and the exposure to various risks and hazards including: fire, mechanical and electrical risks, chemical hazards, heavy duty machinery, workers` transport vehicles, in addition to risks of harmful rays, occupational cancer and asbestos.
The employer must provide sufficient, adequate, natural or artificial lighting, distributed in the workplace equally, free from direct or reflective rays, in addition to a system of emergency lighting in case of the failure of the normal lighting. The lighting system must clearly show emergency exits so that the workers can locate and use them. The position of fire alarms and fire extinguishers must be clearly indicated.
Polluted air shall be avoided by providing a natural or artificial ventilation system that provides fresh air in the workplace and use local ventilation where sources of pollutions exist. This system must effectively suck the polluted air out. The Regulation also specifies the minimum percentage of oxygen, speed of air, and the maximum degree of relative humidity in the workplace.
To protect the workers from exposure to noise, noisy operations that exceed the permissible levels must be isolated away from the workers, or sound insulated rooms should be used. Additionally, insulating, absorbing or reflective equipment should be installed on noisy machines.
Food and Water
The employer must also provide workers with sufficient potable water within easy reach and a reasonable number of water coolers proportionate to the number of workers. Bacterial analysis of the groundwater shall be carried out once every six months and chemical testing once every year in one of the government laboratories.
If food is provided for workers, employers should ensure that food safety measures are strictly observed. A separate place for cooking shall be provided and food serving places must be equipped with hand-washing facilities.
Women's Safety Issues
The Regulation also deals with specific health and safety needs related to women and people with special needs. Employers, for instance, must not expose women to materials or occupational practices which could adversely impact on the safe delivery of children or the health and safety of the foetus.
Thursday, May 12, 2011
Peaceful Strikes Under Omani Law
Although the Sultanate has avoided the degree of social unrest that has arisen elsewhere in the region, protests including employee strikes have occurred in Oman during the past few months. It is not well known that Omani law provides a framework for conducting peaceful strikes, which employers and employees alike would benefit from understanding more precisely.
This article sets out the procedures to be followed by employees to ensure that their strike is carried out lawfully and their demands are made legitimately, as well as the steps available for employers to try to resolve any disputes with their employees in cooperation with authorities in a fast and efficient manner.
The statutory basis for strikes
Ministerial Decision No. 294/2006, as amended (“MD 294/2006”), which was promulgated by the Ministry of Manpower pursuant to Article 107 (bis) of the Labor Law, regulates several aspects of employer-employee relations, including the procedures for holding peaceful strikes. MD 294/2006 states that employees may hold a peaceful strike to demand “the improvement of working conditions and circumstances”. It should be noted, however, that strikes are prohibited in establishments that provide essential public services.
The required procedure
MD 294/2006 sets out the following procedure for employees to hold a strike. First, the employees’ labor union or representatives must provide to the employer, at least three weeks prior to the planned date of the strike, written notice of the employees’ intention to hold the strike. The notice must indicate the employees’ reasons for holding the strike as well as the employees’ demands. This same notice also must be furnished to the Ministry of Manpower and to the relevant local government authorities.
Resolving the strike
MD 294/2006 provides that, upon receiving notice of the planned strike, the Ministry shall attempt to form a committee consisting of representatives of the employees, the employer and the Ministry itself, with the goal of resolving the employees’ demands and ending the dispute. The strike must cease and the employees must return to work upon the employer’s and employees’ representatives agreeing to take part in the committee and commencing negotiations. Upon commencement of the negotiations, the committee must reach an agreement within four weeks; otherwise, the dispute shall be referred to the court system.
However, MD 294/2006 is not clear on its face as to whether either party – the employer’s representatives or the employees’ representatives – is obligated to come to the table and join the committee to negotiate. For example, if the employees could ‘opt out’ of joining the committee, they might not have to end their strike and return to work. If workplace strikes continue in Oman, this likely will be an important area to watch for further clarification from the legislative or judicial system.
Tuesday, June 15, 2010
Focus on Labour Law: Mediation Hearings
In Oman, as in other jurisdictions, labour disputes are a common occurrence. A key, but often overlooked, part of any labour dispute is the mediation process.
Under Omani law, labour disputes are first referred to mediation with a mediator from the Ministry of Manpower. The dispute may proceed only to the court system once the mediator takes the view that irreconcilable differences exist between the employer and the employee.
The mediator’s role is to facilitate discussion and negotiation between the employer and the employee. He or she may encourage the parties to try to resolve their differences and may even express views regarding who is in the right and who is in the wrong. The mediator has no power to force a party to change its position or to bind the parties to a resolution of the dispute. However, it is important to bear in mind that the mediator wields influence by means of its reporting role. At the end of the mediation process, the mediator writes a private report to the Primary Court explaining what the dispute is about and what both parties' respective positions are, and may state who the mediator feels is the culpable party.
Accordingly, any company involved in a labour dispute would be well advised to take the mediation process seriously and to come to the mediation sessions well prepared, even if the company is convinced that mediation will not resolve the dispute. Ideally, both an HR staff member and a lawyer should be present to represent the company at the mediation sessions. Before the first session, the company should collate all paperwork relating to the employee and the dispute so that the company’s HR staff member and the lawyer can carefully analyze these materials, discuss the case in depth, and formulate their strategy for the mediation hearings.
Another reason for companies to approach the mediation process seriously and preparedly is that while the mediation will not necessarily be dispositive of the suit, it may raise information and lines of argument and defense that can carry through to and ultimately affect any subsequent court proceedings.
For example, one difficulty a company may have to contend with is when the employee fails to properly articulate his claim during the mediation process. In this event, the company generally should refrain from offering a detailed defense to the employee’s anticipated claim. Such a course of action may commit the company to a fact pattern or line of defense it may wish to avoid during any subsequent court proceedings. In other words, at the mediation stage, the company generally should respond only to the information presented by the employee and the mediator, and not go into further detail than necessary. The general principle to bear in mind is that a court will look unfavorably upon, and will be much more likely to find against, an employer that has set forth inconsistent information and defense arguments during the court proceedings compared with during the mediation process.
In sum, the mediation process in a labour dispute is an important step that a company must handle attentively and skillfully in order to best protect its interests. Companies involved in a labour dispute would be well advised to consult with a lawyer to help them navigate this process.
Friday, September 11, 2009
Labor Law Alert: Omanisation
Earlier Omanisation policy aimed at reducing the reliance on foreign workers prescribes sector-wise Omanisation targets for the private-sector employers to achieve with a target of 90% for the revenue-rich sectors of oil and gas, banking and travel and tourism and 100% for marketing. The policy makes it mandatory for employers to employ Omani nationals for certain administrative posts such as receptionist and security officer. In addition, certain jobs have also been Omanised area-wise, limiting expatriate employment to certain regions.
The employers in the private sector are required to file their Omanisation plans annually with the Ministry of Manpower.
The implementation of the policy is two-pronged: (i) incentivising companies exceeding the prescribed target; and (ii) restricting foreign labour clearances for employers failing to meet the target. Private- sector companies exceeding their Omanisation targets and meeting other labour-related criteria are entitled to a ‘green card’ which guarantees preferential treatment in some Ministries and other government agencies.
