“Oman Eases Penalties on Businesses for Labour Law Violations”

Oman’s Ministry of Labour recently issued two resolutions enabling employers to pay reduced fines to avoid legal action, and authorising regulators to prohibit employers from issuing or renewing work permits for migrant workers.

…employers who violate the labour law may, upon request, reach a settlement with the Ministry to avoid lawsuits…

For violations related to nationalisation (Omanisation), employing “absconding” migrant workers, or hiring workers who entered Oman irregularly, the violator must pay a fine of OMR 1,000 (US$ 2,597) to have their settlement approved and avoid proceeding with a lawsuit.

… reconciliation does not absolve the violator of their liability…

The resolution specifies that non-Omani workers involved in the above cases must be deported and banned from re-entering the Sultanate, with the employer responsible for covering the costs of the deportation…

While employers face reduced penalties for labour law violations, the new regulations disproportionately harm migrant workers, who are often victims of these offences. Migrant workers, many of whom have invested substantial sums to secure employment in Oman, are now facing deportation without recourse, leaving them with significant financial losses…

…restrictions on renewing permits, transferring workers’ sponsorship, and cancelling absconding reports only harm workers…