Private sector can cut salaries, terminate contracts of expats, says Supreme Committee.

Merge 104.8  |  15 April 2020

The Supreme Committee for tackling the Coronavirus in the Sultanate has issued a new set of directives to help private sector companies in Oman deal with the economic impacts of the pandemic.


Among the new directives issued are the following:

1. Private sector companies are not to lay off their Omani staff or cancel their contracts.

2. Private sector companies that have been affected due to the COVID-19 situation are allowed to end the contracts of their non-Omani workforce, as long as they commit to paying all fees and benefits as required by law, and provided that the employees leave the country for good.

3. Private sector companies that have been affected by the economic fallout of COVID-19 will be allowed to give their employees early annual paid leave — especially in those sectors or departments that have been closed as a result of the situation.

4. Banks have been advised by the Supreme Committee that re-payment of personal loans for Omanis whose salaries have been affected by the situation should be delayed with no extra interest added in light of the delay period.

5. Private sector companies can delay payment of electricity, water, and sewage utility bills until the end of June 2020 and, after that, will be able to pay them in installments.

6. Omani employees who are under social security will be allowed to avail a fuel card benefit to subsidize the price of fuel.

7. Fees for the renewal of labour cards for private sector non-Omani workforce will be reduced from OMR 301 to OMR 201 until the end of June, 2020. This includes those expats whose cards are expired.

8. All fines and fees related to the job permits of non-Omani labourers in the private sector have been canceled, provided those labourers are leaving the country for good.

9. Private sector companies will be allowed to renew the labour cards of employees who are currently outside Oman during the quarantine period, and any subsequent fines related to their permits will be canceled.

10. Private sector expats whose job licenses or work clearances are expiring during the quarantine period, will be able to have them extended.

11. Private sector companies will be allowed to use licenses or have them approved for non-Omani labourers undertaking part-time or short-term work, with the subsequent fees counted as negotiated.

12. Private sector companies will be allowed to seek help or support from the Ministry of Manpower to avail the short-term services of other companies to support their operations, given that there is written agreement between the two companies.

Also read: Ministry orders government companies in Oman to stop paying staff ‘exceptional allowances.’

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