Arbitrary Dismissal under Oman’s Labour Law Explained

Under Royal Decree 53/2023, Oman’s Labour Law offers clear protection for workers against arbitrary dismissal, ensuring that termination of employment must be based on legitimate and clearly defined grounds, and it also offers workers a clear path to challenge unfair decisions. 

In an exclusive interview with Times of Oman, Dr. Mohammed Ibrahim Al Zadjali, Founding Partner of Mohammed Ibrahim Law Firm, explains that “the labour law explicitly lists what constitutes arbitrary dismissal. These include termination based on sex, origin, colour, language, religion, social status, disability, pregnancy, childbirth, or because the worker joined a labour union or filed a complaint against the employer. Dismissal without following proper disciplinary procedure, or because the worker was detained and not referred to court or subsequently acquitted, also falls under arbitrary dismissal.”

“A worker who believes he has been arbitrarily dismissed may file a complaint with the competent labour entity within 30 days of receiving the dismissal notice. The case then goes through a mandatory settlement process before the Ministry of Labour, after which, if settlement is not reached, the dispute is referred to the competent court,” he said. 

He further added that “if the court finds the dismissal arbitrary, it may either order reinstatement or compel the employer to pay compensation of no less than 3 months and no more than 12 months of the worker’s final gross wage. In addition, the worker is entitled to his full end of service gratuity, notice period wages, and insurance contributions from the date of dismissal until the final judgment.”
“This legal framework ensures that employees are not unfairly punished for exercising their lawful rights. It reinforces justice and stability in the workplace. These provisions make Oman’s Labour Law a strong shield against unjust termination,” Dr. Mohammed concluded.

(Mohammed Ibrahim Law Firm ([email protected]), (+968 244 87 600) was established on 14th December 2006 and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas.  It offers legal representation across a wide range of practice areas that include Labour Law, Corporate, Commercial, Contracts, Banking and Finance, International Trade, Foreign Investment, Insurance, Maritime Law, Construction and Engineering Contracts, International Arbitration, Intellectual Property and more).