Tuesday 24 / June / 2025
Muscat: Keeping in mind the ongoing crisis due to the global pandemic of coronavirus (COVID-19), the governing bodies in Oman may reach a permanent consensus to provide a balance between employers and employees in future as well.
This was pointed out by one of the top lawyers in the Sultanate while commenting on the recent decision by the Supreme Committee concerning negotiations on salaries reduction between employers and employees during the COVID-19 outbreak.
Talking to the Times of Oman, Naif bin Khalid Al Qari, Executive director at Mohammed Ibrahim Law Firmand expert in Employment Law, said that the recent decision is a temporary resolution related to the economic crisis resulting from the outbreak of COVID-19, and it has no effect on the economic crises in general.
“Hence, we confirm the necessity of enacting a permanent legislation in Omani Labour Law concerning the mechanism of dealing with any economic crisis faced by the employer, by determining the essence of the economic reasons justifying the adoption of necessary procedures or decisions for the establishment of continuity - such as reducing workforce or their salaries along with determining the labour rights affected by such decisions, to achieve balance between both parties` interests,” Al Qari said.
He continued saying that: “due to lack of legislations, and since the Omani Labour Law did not provide for the provisions and controls governing the employees and employers' rights and duties during the periods of economic crises in particular, the labour market faced many challenges and difficulties regarding the mechanism of dealing with such crises and their impacts on the private sector companies since the past couple of years.
“These companies were unable to adopt decisions to handle and mitigate the economic crisis implications in the manner ensuring their continuity and survival.
“Moreover, it was not easy for the employees and their representatives to accept certain decisions without a definite legal framework ensuring their minimum rights, as well as facing the employer's overreaction and arbitrariness on the account of their rights.
“Hence, it was difficult for both parties - employees and employers - to reach an agreement despite Ministerial Decree No. 264/2006 issued by the Ministry of Manpower allowing and urging collaborative negotiation and concluding Collaborative Employment Agreements.”
The legal expert added that the resolution of Supreme Committee on Investigating the Mechanisms of Dealing with the Outbreak of COVID-19, issued on 15th of April 2020, on permitting negotiations between the employers and employees on salaries and working hours reduction, can be considered as filling temporarily the gap in this missing legal framework. Whereby, it facilitates the collaborative negotiation process between the employers and employees to reach Collaborative Employment Agreements of legal value binding to their parties.
“Additionally, this resolution consists of the provisions adopted by many foreign legislations in such regard, which indicates that it can efficiently achieve the desired objectives.
“This phase represents also a unique opportunity for trade unions in the Sultanate, enabling them to prove a high level of awareness and maturity to deal with such matters, and to achieve significant solutions,” Al Qari said.
He hopes that in these difficult conditions everyone adheres to the highest levels of self-sacrifice and joint action to overcome the difficult condition and cross to the shore of safety.
