MUSCAT– With Oman introducing the new Labour Law which was promulgated by His Majesty Sultan Haitham bin Tarik this week, one of the most interesting highlight of the new legislation is Article 43 that deals with termination of the employee from service.

Following are the circumstances when an employee can be terminated from the job as per the new Labour Law.

1. If an employee fails to reach the required standard of performance, he or she can be given a grace period of six months to improve the performance, failing which, the employee can be terminated. If the employee is Omani, the company must appoint another Omani employee as a replacement.

2. The partial or total shutdown of the establishment, its bankruptcy, the reduction of the scope of its activity, or the replacement of the production system with an alternative that affects the number of required staff.

3. The existence of an economic reason for the establishment to terminate the employee, and in this case an application must be submitted to a committee in the Ministry of Labour to approve the staff reduction to a degree that allows the business to continue operating and to avoid the risk of bankruptcy.