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What does Labour Law say about termination of contracts?

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Muscat: The Labour law 53/2023, issued in July, has set conditions for the termination of an employee (including without notice) in the wake of poor performance, long absence from work, and misconduct, among others.

In Chapter 3, Article (40) states that the employer may dismiss the worker without prior notification and without an end-of-service gratuity if he impersonates an incorrect person, resorts to forgery to obtain a job, commits a mistake that results in a huge material loss for the employer, provided that the latter informs the competent authority of the incident within 30 working days from the date of his knowledge of its occurrence, If he does not observe the written instructions that must be followed for the safety of the workers and the workplace, despite being warned in writing, and violating them would cause serious damage to the workplace or the workers.

Absence without valid reasons

An employee can also be terminated if he is absent without an acceptable excuse or reason from his work for more than seven consecutive days or ten separate days for one year, provided that the dismissal is preceded by a written warning from the employer to the worker after his absence five days in the second case.


An employee can also be terminated if he discloses the secrets of the establishment in which he works in a manner other than what is authorised by law, if he has been finally convicted of a felony or crime involving breach of honour or trust, or a misdemeanour committed in the workplace or during work, if he is found drunk during working hours, under the influence of a narcotic or psychotropic substance, or if he commits an act against public morals.

Also, If, during or because of work, he assaults the employer or his representative, or if he assaults one of his superiors, or if he assaults one of the workers at the work site, which results in illness and unemployment.

The worker can also face termination if he seriously breaches his obligation to perform the work agreed upon in the work contract.

Workers can leave without serving a notice period

Article (41) states that the worker may leave the work without adhering to the notice period stipulated in Article (38) of this law, or before the end of the contract period if it is for a limited period while retaining all his rights, including the end-of-service gratuity, and without prejudice to his right to compensation, after notifying the employer of that.

Article (38) states that the two parties may terminate the contract at any time after the conclusion of the contract based on a legitimate reason by virtue of a notification addressed to the other party in writing 30 days prior to the date of termination regarding workers appointed for a monthly wage, and 15 days for others unless agreed upon in the contract for a longer period. If the contract is terminated without observing the notice period, the party terminating the contract shall pay to the other party equal compensation for the notice period or the remaining part thereof, calculated based on the last comprehensive wage that the worker was receiving.

The worker can leave the job without service a notice period only if the employer or his representative commits fraud during the contract with the worker. If the employer does not grant the worker his wages for more than two consecutive months or does not fulfil his essential obligations in accordance with the provisions of this law and the work contract, If the employer or his representative commits an act against public morals towards the worker If during or as a result of work, the employer assaults the worker, his representative, or his boss If there is a danger that threatens the safety or health of the worker, provided that the employer is aware of the existence of this danger and fails to implement the prescribed measures in this regard.

Article (42) states that the contract ends in any of the following cases - expiration of its term or completion of the work agreed upon, termination of the contract by the worker or the employer in accordance with the provisions of this law, the worker’s inability to perform his work or his death, the worker fell ill with a disease that necessitated his absence from work for a continuous or separate period of not less than three months within one year, provided that the period of sick leave stipulated in Article (82) of this law and his balance of regular leave has been exhausted.

Old Age and Omanisation

Article (43) states that the employer may terminate the contract on his part after notifying the worker in the following cases, the worker reaches the old age that necessitates entitlement to a retirement pension under the Social Protection Law unless otherwise agreed, the ending the service of the non-Omani worker in the implementation of the Omanisation plan in the event that he appointed an Omani worker to replace him in the same profession he was occupying, the worker’s failure to reach the required level of competence after notifying him of the aspects of incompetence and giving him an appropriate period of no less than six months to reach it. If the worker fails, the employer may terminate the employment contract.

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