[Oman] Crackdown on late salary payments

Companies operating in Oman have been told to pay salaries to their employees within seven days of the due period, following a Ministry of Manpower crackdown on late salary payments, Oman Daily Observer reports.

A statement from the General Federation of Oman Trade Union (GFOTU) said, “There should not be any delay in the payment. Any late or short payments require valid justifications from the employer.” 

The statement reportedly comes in the wake of an unprecedented number of complaints about the delay and, in some cases, non-payment of salaries.

Mohammed Khaldi - board member of GFOTU - said, “Companies should adhere to labour laws in the country. Workers should not be put to hardship.” Under Oman Labour Law, the salary must be paid within seven days from the end of the period in which it becomes due in all cases.

The Ministry of Manpower, in a recent statement, warned that it will crack down on late salary payments by companies in the private sector with a new monitoring system.

The GFOTU statement asked employees to report incidents of payment delay to the union or the ministry for appropriate action. The amended Oman Labour Law stipulates that employee salaries must be deposited in their bank accounts.

Article 53 of the law states, “The employer should deposit the salary into the account of the employee in an approved bank. A decision by the minister may determine the exceptions where the employee’s salary may not be deposited in his account.”

Although the penalty in the new system has yet to be defined, it is expected that a hefty fine or even potential shutdown could be incurred.

A trial scheme to track employee wages through their bank accounts is expected to be launched in November this year. After its roll out employees will no longer need to report late payment, or lack of payment, as a result of connections between the Central Bank of Oman and the Ministry of Manpower.

Companies operating in Oman have been told to pay salaries to their employees within seven days of the due period, following a Ministry of Manpower crackdown on late salary payments, Oman Daily Observer reports.

A statement from the General Federation of Oman Trade Union (GFOTU) said, “There should not be any delay in the payment. Any late or short payments require valid justifications from the employer.” 

The statement reportedly comes in the wake of an unprecedented number of complaints about the delay and, in some cases, non-payment of salaries.

Mohammed Khaldi - board member of GFOTU - said, “Companies should adhere to labour laws in the country. Workers should not be put to hardship.” Under Oman Labour Law, the salary must be paid within seven days from the end of the period in which it becomes due in all cases.

The Ministry of Manpower, in a recent statement, warned that it will crack down on late salary payments by companies in the private sector with a new monitoring system.

The GFOTU statement asked employees to report incidents of payment delay to the union or the ministry for appropriate action. The amended Oman Labour Law stipulates that employee salaries must be deposited in their bank accounts.

Article 53 of the law states, “The employer should deposit the salary into the account of the employee in an approved bank. A decision by the minister may determine the exceptions where the employee’s salary may not be deposited in his account.”

Although the penalty in the new system has yet to be defined, it is expected that a hefty fine or even potential shutdown could be incurred.

A trial scheme to track employee wages through their bank accounts is expected to be launched in November this year. After its roll out employees will no longer need to report late payment, or lack of payment, as a result of connections between the Central Bank of Oman and the Ministry of Manpower.