Companies operating in the Sultanate have been told to pay salaries to their employees within seven days of the due period.
“There should not be any delay in the payment. Any late or short payments require valid justifications from the employer,” said a statement from the General Federation of Oman Trade Union (GFOTU). The instruction comes in the wake of an unprecedented number of complaints about delay and, in some cases, non-payment of salaries.
“Companies should adhere to labour laws in the country. Workers should not be put to hardship,” said Mohammed Khaldi, board member of GFOTU. According to Oman Labour Law, in all cases the salary must be paid within seven days from the end of the period in which it becomes due.
The Ministry of Manpower, in a recent statement, warned it will crack down on late salary payments by companies in the private sector with a new monitoring system.
The GFOTU statement asked employees to report incidents of payment delay to the union or the ministry for appropriate action. The amended Oman Labour Law stipulates that salaries of employees be deposited in their bank accounts.
Article 53 of the law states: “The employer should deposit the salary into the account of the employee in an approved bank. A decision by the minister may determine the exceptions where the employee’s salary may not be deposited in his account.”
Although the penalty in the new system is not clearly given, it is expected there will be hefty fine and even potential shutdown.
A trial scheme to track employee wages through their bank accounts is expected to be launched in November this year.
The programme will no longer require employees to report not being paid on time or paid in general due to the branching between the Central Bank of Oman and the Ministry of Manpower.