We previously reported on the introduction of a new statutory redundancy procedure in Oman which private sector employers must follow when contemplating redundancies for Omani nationals (see here)
The Job Security Systems Law (promulgated by Royal Decree 82/2020) places an obligation on employers to notify the Ministry of Labour three months in advance of any intention to make collective redundancies of Oman national employees.
Since the issuance of the Job Security Systems Law, the Public Authority for Social Insurance has issued Regulation No. R/10 of 2020 giving further details of what constitutes "collective redundancy".
Pursuant to the Regulation, an employer's notification to the Ministry of Labour will be triggered in one of the following circumstances:
- if the employer is intending to terminate the employment of two or more Omani national employees within a one-month period; or
- if the employer is intending to terminate the employment of 1% of the total number of Omani national employees.
The Regulation does not specify a time frame which applies to the 1% of Omani employees who may be subject to collective redundancies. Potentially, an employer is likely to be required to follow the three- month notification process for one Omani employee facing redundancy due to completing a redundancy process several months earlier.
For further information, please reach out to our Employment team in Oman.