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Understanding the Legal Framework: Labour Strikes and Employer Closures in Omani Employment Contracts

This guest blog post is written by Budoor Al Suwaid LLM in Commercial and Corporate Law Graduate.

An employee’s right to peacefully strike plays a fundamental role in advocating for their rights and improving their work conditions. The newly released Labour Law, promulgated by Royal Decree 53/2023, boldly emphasises the rights of employees and employers in strikes and closures. It achieves this by dedicating the entirety of Section 2 of Part 8 of the Labour Law (Articles 128-136) to such matters.

The rights of employees to strike in Oman are by no means newly introduced rights. The previous Labour Law lightly touched on the laws and regulations in the settlement of labour disputes between employers and employees. This along with the Ministry of Labour Ministerial Decision 294/2006 formed the previous statutory basis for the laws and regulations of strikes and closures.

As per the new Labour Law, in order to legally strike, employees must adhere to certain stipulations set forth by the legislator. Article 129 stipulates that employees wishing to strike or their union representatives must notify in writing the employer and all relevant authorities, including the Collective Labours Dispute Committee, at least three weeks before the specified strike date. The written notice must include the reason for the strike and the demands of the striking parties. Additionally, the declaration of the strike must receive approval from three-quarters of the members of the general assembly of the union for the strike to proceed.

However, there are limitations to employees’ rights to peacefully strike. If the strike threatens public interest, then it will be considered unlawful. Accordingly, article 128 outlines that striking employees are prohibited from inciting strikes in establishments that provide public or essential services. This includes oil instillations, petroleum refineries, ports, airports, public transportation, and any other establishments that are deemed to provide a public service by the Minister of Labour.

In line with the limitation of the employees rights to strike, a concerning aspect is that any employee that implements their right to strike shall be considered to have taken that striking period as a period of leave without pay, as specified in article 131. This is likely to deter the majority of employees from acting on their rights to strike in cases of labour disputes. Additionally, article 130 conditions that employees must call off strikes if collective labour dispute settlement procedures begin between the employees and employers.

The legislator has also imposed stricter penalties on any employees who violate article 145 of the Labour Law by obstructing or disrupting the workplace during a strike. Any striking employees who violate this provision shall be subject to either imprisonment for a period ranging from one to six months, a fine ranging from 500 OMR to 3,000 OMR, or both penalties.

The above limitations demonstrate the legislator recognising and protecting the rights of employers in regard to strikes.

The legislator has similarly imposed certain rules and regulations on the rights of employers in regard to closures. In order for employers to legally impose closures during strikes they must adhere to certain stipulations set forth by the legislator. As such, article 133 specifies that an employer has the right to completely or partially, when necessary, close their establishment to defend their interests. Employers must also notify striking employees or their labour unions, as well as any and all relevant authorities, of the closure at least three weeks in advance, providing the date and reasoning behind it, as prescribed in article 134.

However, just as employees’ rights to strike are limited, employers’ rights to closures are also restricted. Article 135 limits the rights of employers to closures by prohibiting employers from closing down establishments that provide public services including oil facilities, petroleum refineries, ports, airports, public transportation, or any other establishments that are deemed to service the public by the Minister of Labour. In addition, article 132 holds that employers must immediately stop the closure if the disputing parties agree to begin dispute settlement procedures, and are prohibited from shutting down the establishment during the settlement stages.

To counteract employers’ closure rights, the legislator mandates under article 136 that all closure days are considered paid working days for employees. Article 145 of the Labour Law also imposes strict penalties on any employers who violate the rights of the employees under articles 128, 129, 132, 134, and 135. Violating parties shall be subject to either imprisonment for a period ranging from one to six months, a fine ranging from 500 OMR to 3,000 OMR, or both penalties.

This demonstrates that the new provisions pertaining to strikes and closures introduced in the Labour Law have not only acknowledged the rights of employees to strike but have also placed a parallel emphasis on recognising the rights of employers when it comes to managing such strikes and closures.

Budoor Al Suwaid is a recent graduate with an LLM in Commercial and Corporate Law from Queen Mary, University of London. Prior to that, she received her LLB Laws degree from City, University of London.