The Ministry of Labor has issued Ministerial Decision No. 730/2024, effective from December 15, 2024, marking the first time Oman regulates the temporary transfer of non-Omani Employees between private sector establishments. This groundbreaking step offers flexibility to employers while ensuring compliance with labour laws and protecting worker rights.
Key Conditions for Temporary Transfers
Under these new regulations, temporary transfers are permitted provided the following conditions are met:
- The employer cannot be transferred to a position reserved for Omani nationals (Omanization roles).
- The transfer must align with the worker’s job category and expertise.
- The employer must agree to the transfer in writing.
- The worker must have been employed at the current establishment for at least six months.
- The employer’s labour permit must be active, with at least six months remaining before its expiration.
- The transfer period cannot exceed six months in a calendar year.
- Both establishments involved must meet financial and Omanization requirements.
- The number of transferred workers must not exceed 50% of the workforce at either establishment.
- The transfer must be registered with the Ministry using the approved form.
Employer Obligations
The receiving establishment must:
- Ensure the worker does not remain employed beyond the approved period.
- Provide at least the same wage and benefits as the original employer through the Wage Protection System (WPS).
- Fulfill all legal obligations toward the worker during the transfer.
Why This Matters
This regulation addresses a practical need for manpower exchange between companies, particularly sister companies or subsidiaries, to meet temporary demands without resorting to costly permanent hires. It also allows companies to leverage the expertise of non-Omani employees flexibly during critical periods, such as short-term project expertise or addressing manpower shortages, while ensuring compliance with Omanization requirements and other regulations.
Note on Compliance: Legal Penalties for Violations
Although Ministerial Decision No. 730/2024 does not specify penalties for non-compliance, Labor Law No. 53/2023, outlines clear penalties for related violations. These include employing non-Omani workers without proper authorization or allowing them to work for an employer other than the one specified in their work permit. Penalties may involve fines, imprisonment, revocation of permits, or deportation of the worker at the employer’s expense. Compliance with the decision is essential to avoid such legal consequences.
For businesses navigating these new rules, Bait Al Qanoon offers support with:
- Understanding the legal requirements and ensuring compliance.
- Addressing disputes or issues related to temporary transfers.
- Advising on workforce planning in line with Omanization and regulatory obligations.