Unilateral Termination of Job Contracts: Key Insights for Investors on Labour Dispute Trends in Oman
Muscat: The General Federation of Oman Workers (GFOW) has released its annual report for 2024, indicating that the majority of complaints received pertained to the unilateral termination of employment contracts by employers without valid justification. Issues included contract cancellations following the completion of specific projects, as well as terminations due to the bankruptcy or liquidation of companies.
Additional complaints involved delayed or unpaid wages and bonuses, non-compliance with occupational safety and health regulations, and the reassignment of Omani staff to different job sites not specified in their employment contracts.
In certain instances, GFOW successfully intervened to prevent the termination of Omani employees’ contracts, ensuring their continued employment in accordance with contract terms. The federation emphasized its efforts to increase the hiring of Omanis across various sectors and encouraged training programs to enhance their professional skills.
The report also noted that Omanis whose contracts were terminated due to company liquidation or permanent closure were referred to the Job Security Fund, enabling them to receive financial support until they secured suitable employment.
GFOW highlighted ongoing challenges, particularly the need to expand social protection for low-income workers and adapt it to current economic conditions through effective strategies and programs. It raised concerns regarding the periodic review of the minimum wage in the private sector, which currently hampers workers’ ability to meet basic living expenses.
Moreover, GFOW criticized the six-month time frame for job security allowances, stating it is insufficient given the limited availability of suitable job opportunities. The federation urged a reassessment of this duration in light of real labor market conditions and also called for the establishment of a minimum retirement pension for workers retiring from private sector jobs.
Special Analysis by Omanet | Navigate Oman’s Market
For businesses in Oman, the current landscape presents both challenges and opportunities. The rise in employment-related complaints underscores the necessity for companies to adopt more transparent HR practices, which could strengthen their reputation and employee retention. Smart investors and entrepreneurs should consider investing in workforce training programs to enhance skills and compliance, potentially positioning themselves favorably against competitors amidst ongoing labor market adjustments.
