Employment relationships can sometimes come to an end due to various reasons, including termination. However, employers must understand the legal grounds for terminating employees to ensure compliance with Omani Labor Law No. 53/2023 and avoid legal disputes.
Article 40 of Oman's Labor Law outlines the circumstances under which employers can terminate employees without prior notice and severance pay. In this article, we aim to provide an interview on the grounds mentioned in Article 40 while addressing legal nuances that employers should consider.
Impersonation or Forgery
This ground refers to an employee using deception or falsification to secure employment. If an employer discovers that an employee misrepresented their identity or engaged in forgery during the hiring process, it provides legal grounds for termination.
Serious Material Loss
Article 40 allows for termination when an employee's actions result in a serious financial loss. However, the law does not precisely define what constitutes a "serious material loss," underscoring the need for legal clarity.
Violation of Safety Instructions
Persistent disregard for written safety instructions that jeopardize the well-being of workers or the workplace can be grounds for termination. Employers must issue written warnings before taking such actions.
Unexcused Absence
The law permits termination if an employee is absent without a valid excuse for more than seven continuous days or ten separate days within a year. Notably, the law does not explicitly define what qualifies as an "acceptable excuse."
Disclosure of Establishment Secrets
Termination is justified if an employee discloses confidential information or trade secrets without legal authorization. Protecting proprietary information is crucial for maintaining competitiveness.
Conviction for Felony or Crime
Definitive convictions for felonies, crimes against honor or honesty, or workplace-related misdemeanors empower employers to terminate employment.
Intoxication or Use of Substances
Being under the influence of any intoxicating substances during working hours, or bringing such substances to the workplace, or engaging in acts contrary to public morality can lead to termination. Employers must ensure a safe and professional work environment for their employees.
Assault
Termination is allowed if an assault occurs during working hours against the employer, representatives, superiors, or fellow workers, resulting in illness or suspension from work.
Serious Violation of Work Obligations
Employers can terminate employees who significantly fail to fulfill obligations specified in the employment contract, encompassing persistent and severe breaches.
Legal Ambiguities
Although Article 40 has specified the circumstances about certain aspects of the law, some terms such as "serious material loss," "acceptable excuse," and "serious breach" do not have explicit definitions. Therefore, employers should consult specialized lawyers before making any decisions related to termination. Legal experts possess the necessary knowledge to comprehend legal subtleties and provide guidance to make well-informed and legally sound decisions.
Conclusion
Understanding the grounds for employment termination under the Omani Labor Law is crucial for employers navigating the complexities of employment relationships. While Article 40 provides a guide, legal ambiguities underscore the importance of consulting specialized lawyers.
Our team of employment lawyers at Bait Al Qanoon specializes in helping employers navigate complex termination situations. We provide expert guidance on legal compliance, risk assessment, and negotiations to ensure informed decisions are aligned with labor laws. Our goal is to minimize legal risks, avoiding or limiting the possibility of wrongful termination and potential obligations for employers to compensate employees.
Originally published March 7, 2024.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
