Muscat: In response to the reports circulating on social media platforms, the Ministry of Labour (MoL) said that to ensure a balance between business sustainability and job localization, it announced a decision with incentives to appoint at least one Omani citizen in institutions and companies that have completed one year from their date of establishment.
These packages include training programs linked to employment, on-the-job training, and wage support.
MoL said that the decision is based on the data that showed a significant disparity in Omanization rates among establishments.
A limited number of companies employ the largest percentage of citizens, while thousands of other institutions do not employ any Omanis despite benefiting from the work environment in the Sultanate of Oman:
Around 1,000 large establishments employ 200,000 Omanis compared to 245,000 expatriates, with an Omanization rate of up to 44%, at an average of around 200 citizens vs 245 expatriates in each company
Around 19,000 establishments employ 60,000 Omanis compared to 300,000 expatriates, with an Omanization rate not exceeding 17%, at an average of only three citizens for every 15 expatriates in each establishment.
Over 245,000 establishments do not employ citizens among their workforce, while they employ more than 1.1 million expatriates, with an Omanization rate of zero percent.
This disparity in Omanization rates among establishments made it necessary to take corrective measures to hidden trade, to have fair distribution of opportunities, and to enhance competitiveness on a sustainable and equitable basis.
Alternatives
The Ministry of Labour has adopted flexible alternatives to meet Omanization rates, such as including self-employed and part-time workers within the specified rates.
Taking into account the varying capabilities and activities of institutions, the Ministry of Labor adopted a flexible mechanism that takes into account the economic reality of institutions of all sizes.
Establishments that have completed a year without employing an Omani are required to submit an employment plan within one month from the date of notification.
Establishments with 10 or more workers are required to implement the appointment within three months, while establishments with fewer than 10 workers are given a six-month grace period.
MOL has decided to grant full-time employees a one-year grace period from the date of notification.
To ensure fair application and take into account the specificity of some activities, the Ministry decided to form a committee to address grievances and study exceptional cases that may be affected by the nature of the decision by monitoring the effects of its implementation, and submitting recommendations in line with the ground reality.
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