Oman Labour Laws 2023: Complete guide for workplace dispute resolutions

Bureau of Emigration & Overseas Employment has shared a complete guide for workplace dispute resolutions in Oman under Labour Laws 2023.

Under Oman Labour Law Royal Decree No. 53/2023, a structured and phased mechanism has been established for resolving disputes between workers and employers, aimed at ensuring justice, transparency, and timely resolution.

At the first stage, an internal grievance redressal system is mandatory at the institutional level. Under Article 8, establishments employing 50 or more workers are required to maintain a formal and approved complaints mechanism.

Through this system, employees may submit complaints directly or through a representative, allowing disputes to be addressed internally before legal proceedings become necessary.

If a matter cannot be resolved within the institution, the process moves to the administrative and judicial stage. Article 9 states that no labour case may be taken directly to court unless it has first been referred to the relevant department of the ministry for amicable settlement.

The concerned authority is required to attempt reconciliation within a maximum period of 30 days.

If a settlement is reached, it is formalised through a written agreement signed by both parties and the relevant official, making it a legally enforceable document. If reconciliation fails, the case must be referred to the court within seven days.

The same article further clarifies that employees may file claims relating to their rights within one year, after which the claim will no longer be legally admissible.

In cases of termination, Article 10 grants employees the right to appeal before the relevant authority within 30 days. If the court determines that the dismissal was unfair or unlawful, Article 11 allows either reinstatement or compensation ranging from a minimum of three months’ salary to a maximum of 12 months’ salary.

Additional entitlements, including gratuity, notice period salary, and insurance-related benefits, may also be awarded.

Furthermore, Article 13 exempts employees from court fees in all labour cases, ensuring easier access to justice.

Article 14 provides additional protection for expatriate workers by allowing them to remain in Oman until the final decision in their case, without imposing additional financial obligations on the employer.

A separate framework also exists for collective disputes. Articles 117 to 123 state that in the event of a group-level dispute within an organisation, the matter must first be raised with the employer through a written request, to which a response must be given within seven days.

If the issue remains unresolved, it is referred to the relevant committee. Should no settlement be achieved there, the dispute is then transferred to a specialised arbitration tribunal, which is required to issue its decision within one month.