The global economic recession, compounded by the recent coronavirus pandemic, had led to major layoffs impacting both the governmental and private sector companies, as well as institutions in the region.
The Sultanate of Oman was not immune to these impacts, with many Omani employees in private organisations also losing their jobs as the recession took its toll. Some of them are still waiting to find work commensurate with their capabilities and experience.
A job security system set in place in the Sultanate of Oman helps mitigate the socioeconomic conditions of such individuals. Omani workers whose services were terminated for reasons beyond their control get benefits at the rate of 60% of the average wage during the 24 months preceding their termination. The compensation is not less than the minimum pension stipulated in the Social Insurance Law. With the issuance of the Social Protection Law, benefits accruing to laid-off workers will undoubtedly improve once it is implemented.
According to official data, 15,182 insured persons received job security payouts as of end-May. The social protection fund aims to continue extending job security payments to citizens whose services are terminated by their private sector employers.
The economic and health crises sparked by the pandemic and recession across the world have prompted many countries, including the Sultanate of Oman, to enact legislation and take new measures aimed at mitigating their effects on local societies.
Job security schemes provide a degree of protection to those who are subject to compulsory and voluntary layoffs. It reduces the psychological and social impacts on people and societies. It is implied that these benefits to an individual cease once they rejoin the workforce in order to allow other jobless individuals to benefit from this safety net.
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