Muscat: His Excellency Dr. Mahad bin Saeed Baouin, Minister of Labour, presented a structured plan for the implementation of the Wage Protection System (WPS) in the Sultanate of Oman. Initially, penalties were applied only to the commercial registrations of employers who did not process wage transfers through the WPS. However, the Minister revealed that in the upcoming months, these penalties will be broadened to include fines based on the number of employees impacted by delayed or unpaid wages.
To promote compliance, the government has introduced several initiatives. Fines that have remained unpaid for over seven years will be eliminated. Additionally, penalties related to WPS infractions that occurred during the COVID-19 pandemic will be rescinded, recognizing the financial difficulties faced by employers during that period. Employers will also have until the end of July to address their compliance issues, with options available such as renewing licenses or discontinuing services without facing extra penalties.
While these initiatives are designed to ease compliance, the Minister underscored that complete adherence to labor laws will be compulsory moving forward. This will foster a well-structured and effective labor market that benefits all parties involved and supports the nation’s economic development.
This strategy reflects a thoughtful approach by the government, allowing employers a grace period to correct previous infractions while simultaneously stressing the necessity of future compliance with the WPS. This ensures timely wage payments for workers and promotes a fair and efficient labor market.
