Unfair Dismissal in Oman: What Can an Employee Do?

Losing a job unexpectedly can be difficult, but employees in Oman have legal protections if they believe they were dismissed unfairly or in violation of the Labour Law.

Under Oman’s current Labour Law, a worker who is dismissed may submit a complaint to the competent authority within 30 days from the date they are notified of the dismissal decision. 

If the dismissal is later found to be arbitrary or unlawful, the court can order either the employee’s reinstatement or financial compensation.

What Is Considered Unfair Dismissal in Oman?

Article 12 of Oman’s Labour Law identifies several situations in which termination may be considered arbitrary.

These include dismissal because of:

•    Gender, origin, colour, language, religion, belief or social status 
•    Disability 
•    Pregnancy, childbirth or breastfeeding 
•    Membership in a labour union or lawful participation in union activities 
•    Filing a complaint, report or legal case against the employer, unless the complaint was malicious 
•    Disciplinary action taken without following the procedures required by law or the company’s approved disciplinary regulations 
•    Certain cases where an employee was absent because they were detained and later released without referral to court, or were acquitted 

Not every termination automatically amounts to unfair dismissal. The circumstances, employment contract and reasons given by the employer all matter.

How Long Does an Employee Have to File a Complaint?

This is one of the most important rules to remember.

A worker who has been dismissed can submit a complaint to the competent authority within 30 days of being notified of the dismissal decision. 

Because of this relatively short deadline, employees who believe they have been unfairly dismissed should avoid delaying action.

Where Should the Complaint Be Filed?

Labour disputes generally need to go through the Oman Ministry of Labour’s settlement process before being taken directly to court.

The Ministry provides an online labour complaints service for private-sector employees. The service allows workers to submit complaints, track their status and participate in settlement procedures. 

The Labour Law provides for the Ministry to attempt to resolve the dispute first. If settlement is unsuccessful, the matter can be referred to the competent court. 

What Can the Court Award?

If the competent court determines that the employee’s dismissal was arbitrary or contrary to the law, Article 11 provides two main possible remedies.

1. Reinstatement
The court can order that the worker be returned to their job.

2. Compensation
Instead of reinstatement, the employer may be ordered to pay compensation equivalent to:

At least 3 months and up to 12 months of the employee’s last comprehensive wage.

The amount can depend on factors including the employee’s circumstances and length of service. 

This compensation can be payable in addition to other legal entitlements.

What Other Payments Could the Worker Receive?

Where unfair dismissal is established, the Labour Law also provides for applicable additional entitlements, including:

•    Statutory end-of-service gratuity and other benefits due under the law or employment contract 
•    Comprehensive wage for the applicable notice period 
•    Relevant social insurance contributions covering the period between the unfair dismissal and the final judgment 

The exact amount will depend on the worker’s contract, salary, length of service and applicable social-protection arrangements.

Should You Sign a Final Settlement Immediately?

Employees should carefully review any termination letter or final settlement before signing.

Before accepting a settlement, check:

•    The stated reason for termination 
•    Your notice-period entitlement 
•    Outstanding salary 
•    Unused annual leave 
•    End-of-service gratuity, where applicable 
•    Any contractual bonuses or benefits 
•    Compensation being offered 
•    Whether the document includes a waiver of future claims 
If there is uncertainty, it may be sensible to obtain advice before signing a document stating that all dues have been received.

What Evidence Should You Keep?

Documentation can be particularly important in an unfair-dismissal dispute.

Employees should retain copies of:

•    Employment contract 
•    Termination letter 
•    Emails and WhatsApp messages 
•    Salary slips and bank statements 
•    Performance reviews 
•    Warning letters 
•    Disciplinary records 
•    Attendance records 
•    Previous complaints made to the employer 
•    Any other evidence connected to the reason for dismissal 
Written evidence can help establish what happened and whether proper procedures were followed.

Can Employees Use an Internal Grievance Procedure?

Yes.

Employers with 50 or more employees are required to establish an approved complaints and grievance system. Workers must be allowed to obtain a copy of that system. 

Under Oman’s 2024 complaints and grievance regulations, an employee may first raise the issue with their direct supervisor. If there is no satisfactory response, the matter can be escalated to the employer or its representative and then to the Ministry of Labour.

Importantly, these internal procedures do not remove the worker’s right to complain directly to the Ministry. 

What About Expat Employees?

The same general Labour Law protections apply to eligible expatriate workers in the private sector unless their employment is governed by a special law or system.

The Labour Law also provides that a non-Omani employee who has filed a court case seeking employment entitlements may remain in Oman until the case is decided, subject to the applicable rules. 

Employees should nevertheless check their residence and work-status requirements separately with the relevant authorities.

Key Takeaway

If you are dismissed from your job in Oman and believe the decision was unfair, the most important thing is to act quickly.

You generally have 30 days from notification of dismissal to submit your complaint.

If a court finds the dismissal arbitrary or unlawful, it may order:

Reinstatement, or

Compensation equal to 3 to 12 months of the employee’s last comprehensive wage, together with applicable additional employment entitlements. 

Keeping records, understanding the reason for dismissal and using the Ministry of Labour’s complaint process can make a significant difference.