New Fine Waivers for Expats: How This Decision Affects Legal Employment Opportunities for Your Business in Oman
Muscat: In an interview with Oman TV, Dr. Mahad bin Saeed Baowin, Minister of Labour, stated that the government is actively working to regulate the labour market through various corrective measures.
One significant initiative announced is the waiver of fines accumulated over more than seven years, along with the cancellation of fees incurred during the COVID-19 pandemic. Individuals will have until the end of July to either renew their licences or terminate their services without facing penalties.
The Minister emphasized, “We want to provide those wishing to regularize their status the opportunity to remain in the country and work under proper conditions. They can renew their work permits for the next two years. If an employer chooses not to renew a worker’s permit, they can terminate the employment and provide a travel ticket. All existing fines and fees will be canceled.”
Dr. Baowin also highlighted the Wage Protection System (WPS), which has been mandatory since mid-2023 to ensure transparent salary transfers for private sector workers. To clarify, the current fines are imposed solely on the registry for the first two to three months and will later shift to fines based on the number of workers whose wages are not processed through WPS.
“The labour market faces multiple challenges due to its evolving nature, with new job types and specializations emerging,” the Minister noted, stressing the importance of training programs linked to employment and on-the-job training across various sectors. He pointed out the presence of many expatriates in low-skilled roles that do not attract local citizens.
Dr. Baowin described the regulations issued by the Ministry of Labour as commitments that safeguard everyone’s rights, including the timely payment of wages. He explained that organized companies are better positioned to provide quality services while avoiding harmful practices such as hidden trade. From 2021 to 2023, the Ministry successfully protected approximately 50,000 to 60,000 jobs by negotiating with companies to retain as many Omani workers as possible.
He concluded by noting that the public sector typically absorbs around 12,000 to 16,000 new employees or job seekers each year.
Special Analysis by Omanet | Navigate Oman’s Market
The Omani government’s recent labor reforms, including the waiving of long-standing fines and the implementation of the Wage Protection System, present businesses with a unique opportunity to enhance compliance and retain skilled labor. Investors and entrepreneurs should consider positioning themselves strategically in sectors that require specialized training, as the demand for skilled labor is likely to grow amid evolving job market dynamics. However, they must remain vigilant to the potential risks of fluctuating expatriate workforce policies that could impact operational stability moving forward.
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