The new labour law issued by Oman Sultani Decree No. 53/2023 On the Promulgation of the Labour Law came into effect on 26 July 2023, accompanied by six Ministerial Decisions which were issued since the third quarter of 2024. This Practice Note will examine the key aspects of Oman Sultani Decree No. 53/2023 and provides an overview of the following points:

• A total of 249 professions, along with all part-time jobs, are now exclusively reserved for Omani nationals.

• Non-Omani workers seeking temporary transfers must adhere to strict regulations and register with the Ministry of Labour (MOL).

• Employers are required to comply with the wage protection system, ensuring wages are transferred within three days of their due date.

• Oman Sultani Decree No. 53/2023 allows for employee downsizing based on economic reasons.

• Employers may terminate a contract if an employee fails to meet required competency levels for six consecutive months.

• After an amicable settlement, individual labour disputes will proceed to litigation, while collective disputes will go to arbitration.

• Employers with 25 or more employees are mandated to establish a penalties regulation.