On 24th July 2024, the Ministry of Labour issued a statement outlining several new measures to regulate the employment sector in Oman. These decisions, set to be implemented in September 2024, are aimed at increasing Omanisation and ensuring compliance with requisite labour standards in Oman.
Below are the key points from the Ministry's decisions:
i. All private sector entities must employ at least one Omani national in suitable professions and positions. Detailed regulations on this will be issued shortly. Additionally, as of April 2024, the Ministry of Commerce Industry and Investment Promotion implemented its decision requiring the foreign investors incorporating a legal entity in Oman to employ at least one Omani citizen latest within one year of initiating operations.
ii. Government companies and state administrative units are prohibited from contracting with private sector entities that do not meet their Omanisation targets. All private sector establishments must obtain an electronic certificate from the Ministry, confirming their compliance with labour standards and requirements, including adherence to Omanisation percentage.
iii. The Ministry has added 30 new professions to the list of occupations prohibited for non-Omanis, this updated list will be shared before its implementation in September 2024.
iv. Work permit fees shall be reviewed to incentivize private sector companies that adhere to Omanisation targets, while non-compliant companies will be penalized with double fees.
v. A financial package shall be approved to support the Ministry's initiatives aimed at increasing the mandated Omanisation rates.
vi. The Ministry will intensify inspection and follow ups to ensure private sector establishments comply with these new regulations.
The Ministry has stated that a detailed explanation of these decisions will be provided prior to their implementation in September 2024.
We will be providing updates as and when they are announced, look out for these to ensure compliance with the new regulations.
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