Gratuity rules for expat employees in government sector has been amended

Dr. Mahad bin Said Baowain, Minister of Labour,  has issued a decree amending some provisions of the executive regulations of the Civil Service Law.

Expatriates employed in Oman’s government sector for less than 10 years will be provided a gratuity calculated on the basis of a number of conditions, including time served under employment and the reasons for leaving their jobs.

The conditions were stipulated in Ministerial Decision No. 35/2021, which makes some amends to the country’s Civil Service Law, as issued by Dr. Mahad bin Said bin Ali Ba’owain, the Minister of Labour.
Issued on March 4 this year, these decisions have also been published in the Official Gazette.

According to the Article 1 of the decision, the text of Clause 8 of Appendix No 10 of the executive regulations of the aforementioned Civil Service Law shall be replaced by the following text: “The second party (employee) is entitled, upon the termination of their service, a gratuity amounting to one month’s salary for each year of their service, up to a maximum of 10 months for occupations from grades A to six, and 12 months for occupations for grades seven to 14. The gratuity is based on the last salary received by the second party, with its value not exceeding OMR12,000.”

The decision read, “The employee is not entitled to the aforementioned gratuity in the following cases: if their service period was for less than five years, unless they have been terminated due to death or an inability to work, if they have been dismissed from service as a form of punishment, or if they have been terminated because they need to be sentenced for a felony, or have to be punished for a crime involving deceit and dishonesty.”

Article 2 stated that this amendment solely applies to non-Omanis, and those who have not yet completed 10 years of service. Expatriates who have completed 10 years of service or more are still provided gratuity under the previous regulations of the Civil Service Law.
Article 3 refers to the cancellation of details that contradict the above decisions, or contravenes the law’s provisions.

Appendix 10 of the Civil Service Law provides conditions for a contract for non-Omanis who employ permanent jobs.

In this context, Clause 8, which was amended as part of the ministerial decision, says: “The second party is entitled, upon the end of their service, a gratuity in the amount of one month’s salary for each year of their service, up to a maximum of 12 months.”

This is calculated on the basis of the last salary drawn, and deducted from it is the salary corresponding to the days he has taken as leave without pay.”

The employee is also not allowed to claim gratuity in case he has served less than two years, unless they have been terminated due to illness or death, or if he is involved in a felony or criminal activity.

Source: https://timesofoman.com/article/new-gratuity-rules-for-expat-employees-in-oman and https://www.omanobserver.om/changes-made-to-end-of-service-benefits-of-expats-under-civil-service-law/