Private sector organisations across the world continue to face great difficulties in operating normally amid the challenges posed by the global Covid-19 pandemic, despite vaccination campaigns initiated by governments for their citizens.
Omani businesses and organisations are in no better shape than their foreign counterparts in terms of the challenges and problems they face.
Given these testing times for the private sector as a whole, the authorities have stepped in with stimulus measures and incentives to ease the difficulties of private organisations.
Issues of concern to the private sector and its employees are the subject of discussion during meetings involving government officials, chambers of commerce, academia and other forums.
One major dilemma weighing on the private sector is the issue of adding the mandatory 3 per cent annual increment to its workers amid the constrained economic environment.
The private sector believes that the annual increase should not be compulsory for businesses and organisations in the current circumstances, but rather, it should depend on the performance of individual employees.
This should be based on legal articles that did not clearly clarify the definition of the increase of the annual “periodic bonus”.
Ministerial Decision 541/2013 issued by the Ministry of Labour indicates that the minimum periodic increment should not be less than 3 per cent of the basic wage of the worker provided the employee should have completed not be less than six months of service with the employer, and secondly, that the worker must not have received a (weak or poor) rating in his annual performance report.
This means that if there is a system within the establishment to evaluate the performance of its employees, it is obligated to provide for each worker an annual performance report, and the worker has the right to object to his report if he thinks that it does not reflect his productivity and performance.
Today, there are some large Omani organisations and companies employing thousands of workers, especially in the contracting and construction field.
The annual increment will pose a huge burden on such companies, given especially that many small businesses do not have a system in place to evaluate the performance of their workers.
The question posed today is that while government institutions defer the implementation of annual increments, promotions, incentives and bonuses for their employees, why should private sector organisations be compelled to pay the annual increment to the workers in the current circumstances?
The Omani private sector does not demand that the annual increment or any other bonuses be stopped entirely, but that such benefits are given only to productive and loyal workers who undertake their responsibilities sincerely.
Undeserving are those who evade work or come late, violate labour laws, and ignore work ethics.
In raising this issue, the goal is to that suitable measures are taken to ensure that workers receive their wages and annual increments without imposing a heavy financial burden on private employers.
Such measures should also aim to prevent labour disputes that are ultimately harmful to both parties.
A positive and healthy work environment not only enhances productivity of workers, but also the growth of organisations.
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