Muscat: The Ministry of Labour (MoL) has announced Ministerial Decision No. 729/2024, which brings enhancements to the Wage Protection System (WPS) in accordance with the Labour Law established by Royal Decree No. 53/2023. This decision is designed to promote timely and transparent wage disbursements for employees in the private sector.
Key Features of the Decision:
Oversight of Wage Payments:
The Wage Protection System will utilize electronic monitoring to ensure wage payments are made, requiring employers to deposit wages into employees' accounts at banks or financial institutions authorized by the Central Bank of Oman. Payments must comply with the stipulations in the employment contract and follow legally established timelines.
Updates to Employment Contracts:
Employers are obligated to revise employment contracts whenever there are changes to an employee's wages, ensuring that the updated contract accurately reflects the new wage.
Wage Transfer Timelines:
Employers are required to process wage transfers through the WPS within three days following the conclusion of the wage entitlement period.
Implementation Monitoring and Database Management:
A specific division within the Ministry of Labour will oversee the execution of the WPS, track transactions, and maintain a detailed database.
Exemptions from Wage Transfers through WPS:
Employers are not required to utilize the WPS in certain circumstances, which include:
- Labor disputes that lead to a work stoppage lasting more than 30 days.
- Work suspensions for reasons not attributable to the employer that exceed 30 days.
- Reports of absconding filed with an approval lapse of over 30 days.
- Newly employed individuals who have not yet completed 30 days of service.
- Employees on unpaid leave.
Further Exemptions and Regulatory Oversight:
A committee from the Ministry of Labour will evaluate and make determinations on exemption requests that fall outside the scope of Article Five. Non-compliance with WPS regulations may incur penalties, such as warnings, suspension of initial work permit services, or fines of OMR 50 per worker, which will be doubled for subsequent violations.
This decision also nullifies Ministerial Decision No. 299/2023 and any conflicting regulations. It will take effect the day after its publication in the Official Gazette.
This revised regulation underscores Oman’s dedication to protecting workers’ rights and enhancing accountability in wage practices within the private sector.
