MUSCAT : “Taking into account the varying capacities and activities of institutions, the Ministry of Labour has adopted a flexible implementation 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,” stated the Ministry clarification.

The Ministry also confirmed that the implementation of its Omanisation policy is designed to balance business sustainability with job localisation, while also addressing disparities in localisation across the private sector.

The statement highlighted a significant disparity in Omanisation rates across different types of establishments. Data revealed that approximately 1,000 large companies employ the majority of Omani citizens (around 200,000) alongside 245,000 expatriates, achieving an Omanisation rate of up to 44 percent.

In contrast, around 19,000 establishments have an Omanisation rate not exceeding 17 percent, employing only 60,000 Omanis compared to 300,000 expatriates. Over 245,000 establishments employ more than 1.1 million expatriates with a 0 percent Omanisation rate.

The Ministry asserted that this imbalance necessitates a correction in the labour market to limit hidden trade, ensure fair distribution of job opportunities, and enhance competitiveness on a sustainable and equitable basis. The new decision is presented as a step towards achieving this rebalancing.

To facilitate the implementation and support businesses, the Ministry announced an integrated package of controls and incentives. This includes training programs linked to employment, on-the-job training opportunities, and wage support initiatives aimed at empowering the national workforce. Furthermore, flexible alternatives for meeting Omanisation rates will be considered, such as including self-employed and part-time Omani workers.

Addressing the diverse capacities of businesses, the Ministry has adopted a flexible implementation mechanism. Establishments that have completed a year without any Omani employees will be required to submit an employment plan within one month of notification. Companies with 10 or more workers will have three months to implement the appointment, while those with fewer than 10 employees will be granted a six-month grace period. Full-time employees will also be given a one-year grace period from the date of the decision.

To ensure fairness and address specific circumstances, the Ministry has formed a committee to review grievances and study exceptional cases that may be affected by the new regulations. This committee will also monitor the impact of the implementation and provide recommendations based on practical experience.

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