Conditional Transfer of Expat Employees: Implications for Your Business in Oman’s Private Sector
Muscat: The Minister of Labour has issued Decision 730/2024 concerning the temporary transfer of expatriate workers between private sector establishments, in line with the Labour Law established by Royal Decree 53/2023.
According to Article 1, such transfers will be regulated under specific conditions. These include: workers must not be transferred to a position that has been Omani-ized; they must move to a role that falls within the same category as their previous profession and consistent with the nature of their work. Additionally, the worker’s consent is essential for the transfer, and they must have been employed at the original facility for a minimum of six months.
The work permit of the worker being transferred must be active, with at least six months remaining before expiration. Neither establishment involved in the transfer should have had services suspended by the Ministry, and the total duration of the transfer must not exceed six months within a year for each worker.
Further stipulations include that neither establishment should have outstanding financial obligations to the Ministry and must adhere to the mandated Omanization rates. Moreover, the percentage of workers transferred from the original facility cannot exceed 50% of its registered workforce, and similarly, the percentage of incoming workers at the receiving facility is also limited to 50% of its registered employees. Transfers must be documented using the official forms provided for this purpose.
Post-transfer, the receiving establishment is prohibited from employing the worker once the transfer period concludes and is required to uphold all rights and obligations of the worker during this period. Workers must receive compensation no less than their original wage, with similar benefits and conditions, as per the existing wage protection regulations.
If a worker departs from the establishment they were transferred to, they are required to promptly inform their original employer and provide relevant evidence. The original establishment must then submit a notice of departure following the Ministry’s established procedures.
The worker’s transfer period will be counted as part of their actual service duration.
This decision will be published in the Official Gazette and will take effect on the day following its publication.
Special Analysis by Omanet | Navigate Oman’s Market
The recent regulation governing the temporary transfer of expatriate workers in Oman presents businesses with potential flexibility and adaptability in workforce management, crucial in today’s dynamic market. However, it also introduces limitations on worker movement and strict conditions to ensure compliance with Omanization objectives, creating both opportunities and risks for employers in navigating these new guidelines. Smart investors and entrepreneurs should consider strategic workforce planning to leverage these regulations while ensuring they remain aligned with Omanization goals, thus maximizing their operational potential without falling foul of compliance issues.
