Understanding the RO 60M Labor Reform Package: What It Means for Businesses in Oman
Muscat: The Ministry of Labour announced on Thursday that the Council of Ministers has approved a comprehensive package of exemptions and financial settlements exceeding RO 60 million. This initiative is part of ongoing efforts to protect the rights of individuals and business owners.
The Ministry has canceled all fines and dues for individuals whose labor cards expired seven years ago. Additionally, both individuals and business owners will no longer be required to pay registered dues—including the costs associated with deportation tickets—for the year 2017 and earlier.
Moreover, the Ministry has annulled labor cards that remained inactive for ten years, during which no related services were requested. However, these cards can still be reactivated upon application for renewal, worker departure, service transfer, or when a report of absconding workers is registered.
The Ministry has also written off dues from liquidated companies, on the condition that the workers from these companies are either deported or their services transferred to other employers.
Furthermore, a six-month grace period will commence on February 1, designed to assist concerned parties in organizing their workers’ conditions and exempting them from fines related to labor cards. To benefit from this period, employers must renew their licenses, pay the renewal fees for the next two years, cancel any reports of leaving work, transfer the workers, and ensure that the employer covers the airfare for the workers’ final exit.
The Ministry of Labour will begin accepting applications related to these matters from February 1 until July 31, through its website and various service delivery outlets. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The recent financial exemptions and fine cancellations introduced by the Ministry of Labour create significant opportunities for businesses in Oman, particularly by alleviating the financial burdens associated with expired labor cards and dues. Strategic investors and entrepreneurs should view this as a chance to streamline operations and reintegrate displaced workers, potentially enhancing productivity and business growth. However, they must also be cautious of compliance requirements during the grace period, as failure to adhere could lead to renewed liabilities.
