Looking for a settlement? Here is how to go about it
MADIHA ASIF madiha@timesofoman.com
MUSCAT: Residents and citizens working in Oman’s private sector can request the enforcement of a settlement under Omani law during their employment, or upon the end of service.
Terminated employees are also eligible for the settlement as specified under the law, says Oman’s top lawyers. In a series of articles about Oman’s rules and regulations, entitled “Know Oman”, experts guide readers on their rights and responsibilities while working and living in Oman.
Speaking exclusively to the Times of Oman, representatives of Mohammed Ibrahim Law Firm, a leading legal office in Oman, focused on how to initiate labour dispute settlements in the courts in Oman.
“Article (3) of the Oman Labour Law says that any release, settlement or waiver of rights occurring out of this law shall be null and void unless they are more advantageous to the worker – in that case they shall continue to be enforced,” said Dr. Mohammed Ibrahim Al Zadjali, Chairman of Mohammed Ibrahim Law Firm.
He added that both nationals and expatriates working in the private sector, and thus subject to Labour Law 35/2003, can seek a settlement during their employment period or within one year after termination.
Another expert from the firm explained that labour settlements can be agreed upon, either internally at the company premises or at the Ministry of Manpower (MoM) at its department of labour dispute, or later directly at the court.
He noted, however, that courts in Oman often reject settlements submitted by employers as a defense or argumentation in labour cases, whether concluded at the company or at the MoM.
“The only acceptable settlements are those to which both parties mutually agree at the court, where the judge acts as a guardian, making sure that no pressure or abuse of power is performed by the employer,” the expert said.
He also said that in case the employer changes his mind and refuses to enforce the agreed settlement from the Ministry of Manpower, then the employee shall ask MoM to transfer the labour file to the court.
At the court
“At the court, the employee can either ask to confirm and enforce the MoM settlement, or can ask the judge to ignore it and pass judgement with a completely new settlement,” the expert said.
“However, if the employee changes his mind after receiving the settlement and is not satisfied with it, he could still go to MoM and request to transfer the file to the court.
“Even in this case, the settlement will be presumed void unless the final judgment finds that it was more beneficial to the employee,” the expert added.
Legally defined
According to a spokesperson of the law firm, settlement is legally defined as a mutual agreement to resolve a contractual dispute between the contracting parties.
“Depending on the type of dispute, the settlement will be treated accordingly.
“The general rule states that the parties have the freedom to establish agreement with whoever they want to, and if the settlement of a contractual dispute has been previously accepted by both parties, then it will most probably be approved by Omani courts”, the spokesperson said.
“However, settlements in labour issues are an exception from this common rule, as it is generally non-acceptable by the courts,” he added. But you may wonder what the reasons are for not accepting settlements in labour disputes.
“The Labour Law considers an employee as a weak party, where the employer might force him to sign settlements which would be used later in labour cases for an employer’s defense. So this exception stated in Article (3) is meant to protect employees,” the spokesperson 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 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.