Labour Disputes in Oman: Unfair Dismissal, Claims and Deadlines

A labour dispute in Oman begins with an attempt at amicable settlement before the competent body at the Ministry of Labour. If no settlement is reached within the period set by law, the dispute is referred to the competent court for judgment, under the Labour Law issued by Royal Decree 53/2023. Said Ibrahim Ambusaidi Advocates (SIA), based in Al Khoudh, Muscat, represents both employees and employers in these disputes, from filing the complaint to enforcing the judgment.

How is a labour dispute raised in Oman?

The labour route in Oman is administrative before it reaches the courts. The employee or employer files a complaint with the body competent for settling labour disputes at the Ministry of Labour, which tries to reconcile the two sides amicably. If the settlement succeeds, a binding minute is drawn up. If the dispute is not resolved within the period fixed by law, it is referred to the competent court to decide.

Claims brought by an employee for entitlements are exempt from court fees, to ease matters for the weaker party in the relationship, and are heard by the labour division of the Primary Court on an expedited basis.

When is a dismissal unfair, and what is the compensation?

An unfair dismissal is the ending of service without a legitimate ground among those defined by the Labour Law, or for a reason unrelated to work, such as dismissal for a legitimate complaint, union activity, gender, or the like. Where it is proved that the employer ended the contract without legal justification, the employee is entitled to compensation assessed by law and the court, alongside their other entitlements.

Not every termination is unfair. The employer may end the contract for legitimate reasons connected to performance or serious breaches defined by law, provided the correct procedure of warning and investigation is followed. Most of these cases therefore turn on two questions: was there a legal ground for the dismissal, and was the procedure followed?

What entitlements can an employee claim?

When an employment relationship ends, an employee may claim a range of entitlements that accrue according to their situation, including:

• End-of-service gratuity calculated under Article 61 of the Labour Law, RD 53/2023.
• Unpaid wages and payment for accrued but untaken annual leave.
• Compensation for unfair dismissal, if proved.
• Payment in lieu of notice where notice was not given.
• A certificate of service, a clearance, and a repatriation ticket for a non-Omani where the contract or law provides for it.

Deadlines here are decisive: labour claims are subject to time limits after which the right lapses, so we advise against delay in filing a complaint once the relationship ends.

Key facts

• Labour disputes in Oman are governed by the Labour Law issued by Royal Decree 53/2023.
• A dispute begins with amicable settlement before the Ministry of Labour, then moves to court if not resolved within the set period.
• An employee’s claims for entitlements are exempt from court fees and heard on an expedited basis.
• Unfair dismissal is termination without a legitimate ground or without following procedure, and it carries compensation.
• Entitlements include end-of-service gratuity, unpaid wages, leave pay, and pay in lieu of notice.
• Labour claims are subject to limitation periods; delay may forfeit the right.

When to involve a lawyer

Involve a lawyer if you were dismissed without a clear reason or without an investigation, if you were denied your entitlements when leaving, or if you are handed a clearance to sign that waives rights whose value you do not know. An employer, in turn, needs someone to keep the termination procedure sound, so that a legitimate decision does not become an unfair dismissal before the court.

At Said Ibrahim Ambusaidi Advocates (SIA) we represent employees and employers in labour disputes: we file complaints and attend settlement sessions, bring claims, and plead before the labour divisions and courts of appeal across Oman. The first consultation is free by phone or WhatsApp on +968 9706 3030. We are based in Al Khoudh, Seeb, Muscat, and work Sunday to Thursday, 9:00 to 13:00 and 14:00 to 17:00, in Arabic and English.

This article is general legal information, not legal advice.