Law Updates

MOL Issues Decision on the Wage Protection System

The Ministry of Labour issued a new decision in this week’s issue of the Official Gazette on the Wage Protection System that codifies the rules governing the electronic system for monitoring the payment of wages of employees in the private sector.

Under article 53 of the Labour Law, employers have an obligation to pay the wages of their employees by bank transfer into the account of the employee in a locally licensed bank. This has been managed by an electronic system jointly established by MOL and CBO.

In this decision, MOL has codified the legal requirements to use the system. This decision also clarifies the cases where the employer is not required to make the payments of the wages of the employee and the administrative penalties that may be imposed on employers who violate the decision, namely a warning, suspension of preliminary work permits, and an administrative fine of 50 Rial Omani which is doubled if the penalty is repeated.

You can read the decision in full in English on the link below: