This article provides a brief summary as to the basis upon which an employer can terminate an employee’s service in the event the employee commits a breach of confidentiality or makes disparaging remarks about the employer.
In short, and perhaps unsurprisingly, an employer can fire an employee for disclosing confidential
information or for making disparaging remarks about the employer in public.
In a recent Omani Court case, an employer had been notified by a third party about one of its employees who was heard making disparaging remarks about the company in a public place. Moreover, the third party also stated that they had overheard the employee misuse confidential information.
Wednesday, December 23, 2015
When An Employee Discloses Confidential Information or Makes False Disparaging Remarks About An Employer
Friday, December 18, 2015
Terminating An Employment Contract For Gross Misconduct: An Employer's Practical Guide
Whilst Omani Courts are generally inclined to be highly protective of employees, a recent Appeal Court decision has re-affirmed the long-recognized position that an employer can terminate the employment of an employee who has committed acts considered by the Omani Labor Law to be acts of gross misconduct without having to pay damages (indeed, the Omani Labor Law provides that in the specified cases the company need not provide notice or pay end-of-service gratuity either). An act of gross misconduct can include, for example, using a false identity, intoxication or assault at the workplace, or continued absenteeism.
Pursuant to Article 40(9) of Royal Decree 35/2003 (as amended) (the “Labour Law”), an Employer is authorized to dismiss an Employee without prior notice should that Employee “commit a major violation of his duty agreed upon in his employment contract.” The law does not define what constitutes a “major violation” and Omani Courts have interpreted the definition in a wide manner.
Monday, December 14, 2015
Importation Of Food Into Oman – What You Need To Know
In order to avoid potential problems in the clearance of your merchandise, understanding Omani customs laws is very important. This article sets out the rules and regulations that are relevant for an importer of food products.
Importation of food products into Oman is governed by the Uniform Customs Law (“UCL”) of the Arab Gulf Cooperation Council (“AGCC”) issued by Sultani Decree No. 67 of 2003.
Oman has signed a free trade agreement with the United States and, therefore, imports of nearly all U.S. products are duty-free, provided the products are for consumption in Oman. The UCL imposes a five percent ad valorem duty on almost all products imported from non-GCC countries. However, live animals, fresh fruits and vegetables, seafood, grains, flours, tea, sugar, spices and seeds for planting are exempt from customs duty. Tobacco, pork, and alcohol products are assessed at 100% customs duty.
When a shipment reaches Oman, the importer on record (i.e., the owner, purchaser, or licensed customs broker designated by the owner, purchaser, or consignee) will file entry documents for the goods with the Directorate General of Customs (“Directorate”). Documents that are required to be submitted to the Directorate include:
Wednesday, December 9, 2015
What Does The EU's Proposed "Investment Court System" Mean For The Rest Of The World?
On 12 November 2015, the European Commission transmitted its proposal for an Investment Court System (“ICS”) that would replace the investor-State dispute settlement (“ISDS”) mechanisms in its future trade and investment agreements, starting with the Transatlantic Trade and Investment Partnership (“TTIP”) agreement being negotiated with the United States. Although the ICS proposal may, for now, be a matter between the EU and US, it constitutes a major reform initiative that should be of interest to other States and their investors.
What is the European Commission Proposing?
The current ISDS system provides for foreign investors to submit disputes concerning the host States’ treatment of their investments for resolution by international arbitration tribunals. These tribunals are established on an ad hoc basis, typically with each side appointing one arbitrator and the presiding arbitrator appointed by agreement or by an independent institution, such as the International Court of Justice. The decisions of the tribunals are binding, and are generally subject to very limited and decentralized appellate review.
Friday, December 4, 2015
Welcome to Dominic Pilkington
We are pleased to announce that Dominic Pilkington has joined the Litigation Team as Counsel.
Mr. Pilkington has over 20 years’ experience in building and construction law, construction disputes, arbitration, mediation and adjudication. Further, prior to becoming a qualified lawyer, Mr. Pilkington was a qualified civil and structural engineer.
Mr. Pilkington has worked extensively in both Australia and Dubai, advising and assisting major developers, contractors, and energy and resources companies in relation to various major construction and infrastructure projects, particularly in relation to disputes that have arisen during the course of such projects.
Monday, November 30, 2015
Legal Updates - November 30, 2015
Royal Decree 35/2015: The Law on Regulating the Profession of Pharmacology and Pharmaceutical Establishments
RD 35/2015 promulgates the law regulating the profession of pharmacists and pharmacies (the “Pharmacy Law”). The Pharmacy Law introduces a number of measures designed to protect Omani pharmacists from foreign competition and to prevent the formation of monopolies in the pharmaceutical sector.
Such measures include limiting the number of pharmacies an individual may open to one, restricting the number of branches that any given pharmacy may open, and stipulating the minimum distance between pharmacies.
Article 11 provides that either the owner of any pharmaceutical establishment or one of his partners must be an Omani partner. The Minster of Health may waive the requirement for a pharmaceutical qualification in areas where pharmaceutical services are scarce.
It is hoped that the law will help Omani pharmacists find jobs in pharmacies, increase the availability and distribution of pharmaceutical services over a greater area, and encourage investment in the sector.
Monday, November 23, 2015
Law of Muscat Municipality
In line with new plans for a complete restructuring of the strategies and objectives of Muscat Municipality (the “Municipality”), 3812015 came into effect on the 13 October 2015, thereby replacing the RD 8/1992.
The new law aims to achieve greater efficiencies. It specifies that the Municipality shall achieve its objectives by utilizing the funds allocated to it by the State, the profits incurred from its investments and the general revenue that the Municipality collects from fees and charges.
Monday, November 16, 2015
Enforcement of Omani Court Judgments and Arbitration Awards in Commercial Disputes Process and Procedure
The Enforcement Department is a separate authority within the Omani Primary Courts which overlooks all aspects of enforcement.
Each Primary Court in the country is furnished with at least one enforcement judge who is also a member of the Primary Court judge panels.
Enforcement judges have jurisdiction to review all disputes, applications and requests in relation to enforcement of judgments / awards as well as any preliminary and emergency applications in ongoing commercial cases involving matters under their jurisdiction.
Monday, November 9, 2015
Director's Duties in Oman
The functions and powers of a director of a joint stock company and a manager of a limited liability company (“LLC”) are provided for in a company’s articles of association (“articles”) or constitutive contract and the Commercial Companies Law as promulgated by Oman Royal Decree (“RD”) 7/1974 (as amended) (the “CCL”). In addition, the board of directors (the “Board”) of a public joint stock company (SAOG) will be subject to the Code of Corporate Governance (the “Code”), which shall become effective on 22 July 2016. However, the Code shall come into effect for each SAOG upon the expiration of the validation period of the Board, even if the validation period is before 22 July 2016.
The Code provides a framework for the management and control of SAOGs listed on the Muscat Securities Market, and outlines the composition of the Board (Principle 2) in Omani companies, as well as the functions and powers attributed to them (Principle 3).
Thursday, November 5, 2015
Without Prejudice in Oman
In common law jurisdictions, the term ‘without prejudice’ is a reservation made on a statement suggesting that it cannot be used against the publishing party in future dealings or litigation or arbitration. – DUHAIME’S LAW DICTIONARY.
The policy behind the common law rule is to encourage settlements and to promote free and frank discussion toward that end. If parties in a dispute are encouraged to resolve their differences without taking up the time of a court or an arbitral tribunal, they must be able to communicate freely without the fear that what they say or write will be used against them in evidence as admissions. If the communication is a genuine attempt to settle a dispute, it will be protected from being produced in evidence.
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