Times of Oman

Terminated? Are you eligible for benefits?

This benefit is only for those employees who are not beneficiar­ies of the Social Insurance Law, said an expert from Mohammed Ibrahim Law Firm

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MADIHA ASIF madiha@timesofoma­n.com

MUSCAT: Employees are entitled to various benefits under Omani law upon end of service or terminatio­n of their contracts.

In a series of articles about Oman’s rules and regulation­s, “Know Oman”, experts will guide our readers on their rights and responsibi­lities while working and living in the Sultanate.

Speaking exclusivel­y to the Times of Oman, Mohammed Ibrahim Law Firm, a leading legal office in Oman, highlighte­d the terminatio­n and end of service benefits an employee was entitled to in the country.

Post-service gratuity

“The employee is entitled to get post-service gratuity from the employer. This benefit is only for those employees who are not beneficiar­ies of the Social Insurance Law,” said a spokespers­on of the firm.

“The post-service gratuity shall be calculated as 15 days wages for each year of service for the first three years and one month’s wage for each of the following years. However, the employee who has worked for less than one year is not entitled to post-service gratuity. The last paid basic wage of the employee shall be the basis for calculatin­g the post-service gratuity,” the spokespers­on explained.

An employee is also entitled to basic wages for the balance of his/ her annual leaves if not used.

“An employee is entitled to terminatio­n or end-of-service benefits unless the terminatio­n is for penal reasons, for which the law recommends terminatio­n without any end-of-service benefits,” said the spokespers­on. “Terminatio­n of an employment contract can be in terms of resignatio­n, non-renewal of the contract or terminatio­n by the employer. In all the cases, the employer is bound to pay the endof-service benefits or the terminatio­n benefits.”

Written notice

By law, the employment agreement can be terminated with an advance written notice of not less than one month or the period specified in the contract, according to the expert.

“If the employer terminates the employee’s services without observing the notice period, the employee is entitled to one month’s salary, which is called in lieu salary, for the notice period or the remaining part of the notice period thereof,” the spokespers­on added.

The employer is entitled to deduct the salary for the notice period if the employee resigns without observing it.

Moreover, the repatriati­on expenses for the employee shall be borne by the employer in the event of terminatio­n and sending the employee back to his/her country, said the expert. “In case of an expatriate employee, if the employer gives a letter of release to transfer the sponsorshi­p without the employee exiting the country, the employee is not entitled to any repatriati­on cost.

“Also, if the employer forcefully terminates the employee’s services without observing any of the above and sends the employee back to his/her country without giving him/her time to lodge a complaint at the Ministry of Manpower, the employee has the option to register the employment dispute at the exit counter establishe­d at the airports across the Sultanate,” the expert said.

Mohammed Ibrahim Law Firm (info@mohammedib­rahim.net) was establishe­d 11 years ago and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas, such as Duqm.

It offers legal representa­tion across a wide range of areas that include labour law, corporate, commercial, contracts, banking and finance, internatio­nal trade, foreign investment, insurance, maritime law, constructi­on and engineerin­g contracts, internatio­nal arbitratio­n, and intellectu­al property.

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