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Merge 104.8 | 16 June 2020
Oman’s Government Communications Centre (GC) has issued a statement clarifying the Sultanate’s decision to allow expat residents in the country to switch employers without the need for a No Objection Certificate (NOC).
On June 7, Inspector General of Police and Customs, His Excellency Lieutenant-General Hassan bin Mohsen Al-Shariqi, issued Decree No. 157/2020 which amended certain provisions to the executive regulations of the Foreigners Residence Law, issued by Royal Decree 40/15.
In a circular issued today [Tuesday, June 16] the GC said that the decision was arrived at over various phases of study.
The first step in the process came in 2016 through the formation of a team between the government and the private sector, facilitated by Tanfeedh Labs, to discuss and study the possibility and impact of cancelling the NOC rule.
In April 2020, Oman entered into the UN’s International Covenant on Economic, Social and Cultural Rights and, on May 31, 2020, the decision to repeal the NOC rule in the Sultanate was made, with the decision coming into effect as of January 1, 2021.
In its statement, the GC clarified that the benefits of the decision contain a multitude of positive facets. In terms of competitiveness in the Sultanate’s labour market, and the competitiveness of the Omani workforce, the decision will help to further boost competition and reduce the wage gap between the national and expatriate workforces.
Authorities also expect the decision will help decrease the numbers of expatriate employees fleeing or absconding from their contracts due to pressure from employers who use the NOC rule as a tool to ban employees from working in Oman for two years after their contract has expired.
As per the GC, the decision is also anticipated to help reduce administrative costs for employers associated with repatriating expat employees back to their home countries and, also, help combat instances of illegal workforces in the country.
The NOC repeal is also expected to provide Oman’s local market with qualifications and talents that are dynamic, and which can help the market in terms of supply and demand.
Lastly, the decision will help empower the country with a positive stature in front of international organizations that are affiliated with labour rights, human trafficking, and freedom of movement among labourers.
Government authorities have also noted that the decision to repeal the NOC also applies to domestic workers in the Sultanate who wish to leave their employer after their contract has ended.
Oman’s GC answers frequently-asked questions about the new law:
1. Are there any stipulations that would restrict a non-Omani employee from moving to another company without a reason?
The relationship between the worker and the employer is regulated by the labour law but, in the event that the non-Omani worker wishes to transfer to another employer after the end of the contracting period with the current employer, the new decision guarantees him/her this right without the need to state the reason for his/her desire to relocate.
2. What if an employer wants to ensure that an employee doesn’t reveal or leak any proprietary company information to their new employer?
The expatriate resident’s current employer can request the drafting of a Non-Disclosure Agreement (NDA) before the employee signs another contract with a new employer.
3. If an employee has fled or absconded from his current employer, does that give him/her the right to move to another employer under the new law, without the need for an NOC?
If evidence is found against an expatriate employee who has fled or otherwise absconded from the terms of their contract with their current employer, then legal action will be taken against him/her to ensure that the employee is deported from the country and will not be allowed to return to Oman to work.
(Also read: #BREAKING: Oman to allow expat residents to switch employers.)
