Oman

Highlights of the New Omani Advocacy Law

In response to regional and global changes, and in line with the reformation of Omani legislation and Oman’s Vision 2040, a new Advocacy and Legal Consultations Law is set to be issued at the beginning of 2024. This law will replace the current Advocacy Law, which was issued by Royal Decree No. 96/108 in 1996. The main anticipated features of the new Advocacy Law are outlined below:

Restricting advocacy to Omani lawyers only:
The new law is likely to maintain the ongoing practice of limiting advocacy practice in all levels of courts to only Omani lawyers. Foreign lawyers and advocates will still not be able to represent clients in court, having instead to engage local counsel. This will continue to have a positive impact in terms of attracting young Omani talent to the legal profession, building the capacity of legal practitioners, and ensuring their familiarity with the local customs and nuances. It is also aligned with the overall direction to Omanize the judicial system.

The forthcoming introduction of the Advocacy Law represents a significant and positive milestone for the legal profession which will have far-reaching implications. This legislation is poised to raise the bar for professional standards, elevate the quality of legal services, and foster greater public regard of the legal profession.

Ahmed Al Barwani
Partner, Head of Office - Oman

Basma Al Kiyumi
Partner, Head of Dispute Resolution - Oman

Prohibition of Dual Employment:
The new law is set to reinforce the rule that lawyers cannot combine their professional work with any other public or private work. Although the existing law allows for dual employment, this was prohibited from January 2013 with a few exceptions. One such exception permits legal professionals to also work in academic legal roles in colleges and universities, while another exception allows them to work in parliamentary roles. However, some predictions suggest that some of these exceptions may be removed to ensure that lawyers are fully committed to their profession without interference from other occupations.

Reducing the transition period for lawyers' rolls:
Critics of the current Advocacy Law have argued that it is burdened with lengthy timeframes for transitioning from the lower to higher lawyers' rolls (which would signify advancement in the legal profession). In response, the new Law aims to reduce these periods in alignment with judicial requirements and the current market needs and circumstances.

Broader safeguards for Lawyers:
The new Advocacy Law is expected to introduce broader safeguards and tools for lawyers to perform their professional duties independently. The principles outlined in Article 88 of the state's constitution emphasize the importance of the legal profession's independence and ensuring lawyers' necessary safeguards and protection while carrying out their work. The new Law aims to enhance safeguards for lawyers to ensure the independence of their work and their role in contributing to justice, legal sovereignty, and due process.

Regulation of lawyers and law Firms:
The new Law will provide lawyers with certain protections and benefits, while also placing specific requirements and responsibilities on them and their firms throughout the duration of their licenses. The aim of this regulation is to ensure that the legal profession operates within the boundaries of legal frameworks. Additionally, it is expected that the new Advocacy Law will encourage the merger of law firms into larger entities and promote a culture of collaboration among lawyers and firms.

Regulation of International Law Firms:
Although some international law firms are currently operating in the Sultanate, the existing Law does not provide sufficient regulations for their operations.

Hence, the new Law is expected to clearly define the regulations for these firms and bring them under the umbrella of the legal profession. It is worth noting that the services offered by international law firms may be restricted to legal consultations only.

The forthcoming introduction of the Advocacy Law represents a significant and positive milestone for the legal profession which will have far-reaching implications. This legislation is poised to raise the bar for professional standards, elevate the quality of legal services, and foster greater public regard of the legal profession. Its potential for transformative impact is underscored by its potential to confer numerous benefits to legal practitioners and service recipients alike. By setting out clear guidelines for advocacy and legal representation, the new Advocacy Law promises to lead to increased accountability, transparency, and greater professionalism in the legal sector. Its enactment is eagerly awaited by legal professionals and the public alike as a key advance in the ongoing evolution of the legal profession.

Contact Partners:
Ahmed Al Barwani
Basma Al Kiyumi

Contributing Authors:
AbdulRahman Al Sabai
Arafa Al Azri

The Legal Landscape of Oman in 2024

Numerous new laws were introduced in Oman in 2023 across different sectors, including government operations, housing, and finance. We will witness their impact in the upcoming year, 2024, and this article explores the potential transformation across various sectors and touches upon some of these new laws and their implications.

In Oman, it has become an annual tradition that the first Royal Decree is issued on 1 January. This decree usually reveals the general budget of the State, providing details on government revenue sources, expenses, and funds allocation for all government entities. It offers crucial insights into the nation’s economic trajectory and provides a roadmap for further legislative change in the year to come.

Over the past year, Oman has introduced new laws such as the Higher Education Law and the School Education Law. These laws are expected to bring about significant changes in Oman's educational system by modernizing curricula and aligning the education vision with Oman's vision for the year 2024. These changes promise to create a better future for Oman's students by ensuring that they receive a high-quality education that prepares them for success in a rapidly changing world.

The legal landscape of Oman in 2024 will reflect the ambitious vision of the nation to achieve economic diversification, social development, and global integration. The new laws introduced in 2023 will have a lasting impact on various sectors, such as education, employment, finance, and maritime trade. These laws will enhance the quality of life for Oman's citizens, protect their rights and interests, and foster a conducive environment for investment and innovation.

Ahmed Al Barwani
Partner, Head of Office - Oman

Basma Al Kiyumi
Partner, Head of Dispute Resolution - Oman

Labour Law and the Social Protection Law
The introduction of the Labour Law and the Social Protection Law has brought significant changes to the employment sector in the Sultanate. The Labour Law has implemented essential worker protections, such as extended leave provisions, redundancy regulation, and fair compensation frameworks. On the other hand, the Social Protection Law aims to establish a robust social safety net to ensure financial security for citizens, which will have a positive impact on increasing their purchasing power.

The Public Debt Law
The Public Debt Law was introduced as a proactive measure aimed at safeguarding the State's economy from future financial vulnerabilities. It comes with a clear objective of controlling public debt, reducing its burdens, and sparing the State from financial risks.

The Maritime Law
The Maritime Law is a significant addition to Oman's legal framework. It replaces the previous law issued in 1981 and establishes a comprehensive framework for regulating maritime activities within Oman's territorial waters. The new law ensures safety, environmental protection, and adherence to international maritime conventions. This solidifies Oman's position as a key player in global maritime trade.

Looking ahead, it is now the responsibility of relevant governmental authorities and entities to ensure the appropriate implementation of recently enacted laws, which we expect will also involve meticulously drafting relevant regulations to give life to these laws. Beyond the immediate horizon, the tenth Omani five-year plan envisages amendments to existing procedural legislation.

The Civil and Commercial Procedures Law and the Criminal Procedure Law are expected to be revised, potentially paving the way for the establishment of online court hearing courts. The plan also foresees the abolishment of judicial leave and the implementation of the Royal directives regarding the judicial police. These changes will streamline the judicial processes and bolster the efficiency of the legal system.

The legal landscape of Oman in 2024 will reflect the ambitious vision of the nation to achieve economic diversification, social development, and global integration. The new laws introduced in 2023 will have a lasting impact on various sectors, such as education, employment, finance, and maritime trade. These laws will enhance the quality of life for Oman's citizens, protect their rights and interests, and foster a conducive environment for investment and innovation. As Oman enters the final year of its tenth five-year plan, it will continue to pursue legislative reforms that will strengthen its legal system and align it with international standards and best practices.

Contact Partners:
Ahmed Al Barwani
Basma Al Kiyumi

Contributing Author:
Abdul Mutalib Al Ajmi

Understanding the new Omani Labour and Social Protection Legal Regime

In accordance with the goals set out in Vision 2040, Oman passed two laws in 2023: the Labour Law and the Social Protection Law . We anticipate significant change as the impact of these laws is felt in 2024.

The New Labour Law
Private sector employers in Oman are advised to review their policies and procedures in light of the recent changes to the law governing labour relations. The introduction of the new Labour Law, which came into effect on 31 July 2023 pursuant to Sultani Decree no 53/2023, is the biggest change in Oman’s labour laws since 2003. It is seen as an indication of Oman’s commitment to reforming and improving the labour landscape to achieve the objectives set out in its Vision 2040. Employers must ensure that their policies and regulations comply with the requirements of the new Labour Law by 30 January 2024.

Some examples of the changes that have been introduced by the new Labour Law include:

Working Patterns
The New Labour law has recognized certain working patterns that were not specifically addressed in the old law which are subject to regulation by the Minister of Labour, including casual, temporary, part-time and remote employment.

Redundancy
The new law now specifies rules for redundancy in cases of economic and work restructuring reasons. To terminate Omani employees, employers must now apply to the Ministry and follow the statutory procedures laid out in the law. The regulation of redundancy is a welcome move for private sector employees.

Cap on Compensation for Unfair Dismissal
The new Labour Law has introduced a cap on the compensation amount for unfair dismissal termination. The minimum compensation amount stands at three months' salary, whereas the maximum amount is restricted to twelve months' salary.

The recent issuance of the New Labour Law and the Social Protection Law has been welcomed by private sector employers as they aim to reform and enhance the labour landscape and social welfare framework in Oman. This significant legislation change is seen as a living testimony and clear commitment of Oman towards achieving its Vision 2040.

Ahmed Al Barwani
Partner, Head of Office - Oman

Basma Al Kiyumi
Partner, Head of Dispute Resolution - Oman

Leave
Significant changes have been made to the way leave is regulated. The law has explicitly set out employees’ right to unpaid leave upon mutual agreement. Additionally, they are allowed to carry forward up to 30 days of annual leave days that can be used in the following year. The New Labour Law also covers other types of leave such as sick leave, maternity leave, paternity leave, marriage leave, caregiver (accompanying) leave, examination leave, compassionate leave, hajj leave, and unpaid leave for childcare for female employees.

Non-compete clause
The recently introduced Labour Law has laid down certain conditions that must be followed when including non-compete clauses in employment contracts. Such clauses may not extend beyond a period of two years, and the contract must clearly specify the type of work and associated geographical restrictions.

Temporary assignment
The new Labour Law permits employers to temporarily assign employees to work for another employer, reducing costs associated with hiring foreign labour and improving business operations.

Duration of Employment Contracts
The New Labour Law offers the choice to enter into either unlimited or limited-term contracts. A limited-term contract can be for a maximum duration of 5 years. If a limited-term contract is agreed for a period that is more than 5 years or the total length of the original and renewed contract exceeds 5 years, then it will be treated as an unlimited-term contract.

Social Protection Law
On July 17, 2023, Oman introduced Sultani Decree no. 52/2023, which promulgated the Social Protection Law (the “SPL”). The SPL will come into force on July 1, 2024, with a few provisions gradually entering into force over a period of one to three years. The SPL aims to improve the social welfare framework by establishing a single and unified social protection fund that will enhance financing and provide a wide range of benefits to workers and their families.

The SPL provides two main types of protection: social insurance and social protection. Social protection benefits are provided to groups such as the elderly, people with disabilities, widows and orphans, children, and first-time job seekers. Social insurance covers various benefits including health insurance, employment security insurance, insurance for sick and unusual leave, and insurance for work-related illnesses and accidents.

A significant development is the introduction of a new savings scheme under the SPL for expat employees to replace the lump-sum end of service gratuity. Under the new scheme, each employee will have an individual account that will be funded by a monthly contribution of 9% of their salary.

Detailed information about the scheme will be provided in forthcoming regulations, and it is important for businesses and organizations to stay up to date with these developments to ensure compliance with the new legal framework.

The Social Protection Fund issued executive regulations implementing the SPL and establishing its conditions and procedures on 31 December 2023. It is expected that the Ministry of Labour will issue the necessary decisions for the implementation of the New Labour Law within 2024. Until then, the existing systems, regulations, and decisions will remain in effect as long as they do not conflict with the new Labour Law.

The recent issuance of the New Labour Law and the Social Protection Law has been welcomed by private sector employers as they aim to reform and enhance the labour landscape and social welfare framework in Oman. This significant legislation change is seen as a living testimony and clear commitment of Oman towards achieving its Vision 2040. We continue to assist employers with detailed analyses in navigating the New Labour Law and the SPL.

Contact Partners:
Ahmed Al Barwani
Basma Al Kiyumi

Contributing Authors:
Mazoon Al Hadhrami
Wassim Mahmoud