OMAN Law and Practice Contributed by: Said Al-Shahry, Thamer Al-Shahry, Jeremy Pooley, Maria Mariam Rabeaa Petrou, Mujtaba Ali Kazmi and Salim Al Harthi, Said Al Shahry & Partners
7/2018, as amended (the “Penal Code”) in the event of an LLC’s bankruptcy. Branches The liability of a branch’s directors/managers and officers will, generally speaking, be determined based on the laws applicable in the jurisdiction of incorpo - ration of its parent company and the constitutional documents of its parent company. The general manager of a branch will also be per - sonally liable if the authority granted in their power of attorney is exceeded (as will any other authorised signatory of the branch who exceeds their authority). The parent company of a branch is required to guar - antee the obligations and liabilities of the branch pur - suant to the letter of undertaking referred to under 3.2 Incorporation Process . Therefore, the liability of a branch is not ring-fenced. The employer/employee relationship in Oman is regu - lated by the Labour Law RD 53/2023 (the “Labour Law”). Regulations are issued from time to time by the Ministry of Labour to regulate particular aspects of the employment relationship further. The Labour Law prescribes an employee’s minimum benefits and entitlements, such as maximum working hours, annual leave and sick leave entitlements. The employment contract may include benefits and enti - tlements that exceed these minimum requirements. Employee unions are recognised in Oman. Collective negotiations may take place between the employer and the employees’ trade union to improve the terms and conditions of work, enhance productivity and set - tle disputes. Employees have a right to strike peace - fully, provided certain procedures are followed. 4. Employment Law 4.1 Nature of Applicable Regulations 4.2 Characteristics of Employment Contracts The Labour Law requires a contract of employment to be in writing; it must be in Arabic and must be translated into a language that both employer and
employee can understand, where applicable. A con - tract of employment must include certain specified information and may be for a fixed or unlimited term. 4.3 Working Time Employees may not be required to work more than eight hours a day or 40 hours a week, provided that the working hours are interspersed with but do not include an hour’s lunch break per day. The continu - ous period of work must not exceed six hours. An employee is entitled to at least 48 consecutive hours of rest per week after five continuous working days. If an employee is required to work overtime, then the employer must pay the employee overtime equiva - lent to the employee’s basic salary for the extra work hours, plus at least 25% of such salary (for day-time work) and 50% of such salary (for night-time work); if the employee agrees in writing, the employer may grant the employee leave from work in lieu of the over - time. Employees who work on an official holiday are enti - tled to salary for such day plus additional overtime pay equal to 100% of the daily basic wage or to an additional rest day for each day. 4.4 Termination of Employment Contracts An employment contract will terminate under the fol - lowing circumstances: • upon the expiry of the term of the contract or com - pletion of the work agreed upon; • termination of the contract by the employer or employee in accordance with the Labour Law; • upon the employee’s death or permanent disability; and • illness of the employee that necessitates absence from work for a consecutive or intermittent period of no less three months within one year, provided that the sick leave period set out in the Labour Law and the employee’s balance of annual leave is exhausted. Although an employer may terminate an employment contract by notice, the Supreme Court has held that termination should be based on a legal justification. If the termination of an employee’s employment con -
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