Other BriefingsOman Requires Ministry Approval for Termination of Omani Nationals
Oman has confirmed that employers must obtain prior Ministry of Labour approval before the termination of any Omani national, significantly tightening compliance requirements across the private sector. The move increases regulatory oversight of workforce restructuring and underscores the need for early engagement and careful planning by employers and investors.
The clarification, issued on January 7, 2026 by the MOL in response to a question raised in the Majlis A’Shura, applies across all private sector industries and represents a material shift in Oman’s workforce regulatory framework.
The new directive expands regulatory oversight beyond the existing provisions of Oman’s Labour Law (Sultani Decree No. 53 of 2023), which previously allowed certain terminations of Omani nationals without prior ministerial approval, depending on the grounds for dismissal.
Under the updated approach, employers are required to formally notify the MOL and secure written approval in all cases before proceeding with termination, supported by documented economic or operational justifications. The move reflects the government’s broader objective of strengthening job security for Omani nationals and has direct implications for corporate restructuring, cost rationalisation, and workforce planning strategies in the Sultanate.
Legal position clarified by the MOL
The MOL has formally clarified that employers must obtain prior ministerial approval before terminating the employment of any Omani national. This requirement applies across the private sector and represents a tightening of regulatory oversight over workforce management involving local employees. Under the clarified position, employers are required to submit a formal termination request to the MOL for review. The request must include:
- Detailed information on the company’s economic situation and operational circumstances; and
- Clear explanation of the reasons for the proposed termination, including any restructuring or cost-reduction measures.
Terminations may not proceed without written approval from the MOL. The objective of this process is to ensure due process, transparency, and compliance with labour regulations, particularly in cases where employment decisions may have a significant social or economic impact.
Triggering incident and parliamentary scrutiny
The clarification follows heightened parliamentary scrutiny after concerns were raised in the Majlis A’Shura regarding recent layoffs in the telecommunications sector. A Shura Council member questioned the handling of dismissals involving Omani employees, citing reports of abrupt terminations and instances where employees’ workplace access, including biometric systems, was reportedly disabled on the same day they were informed of their dismissal.
These allegations prompted a formal response from the MOL, who framed the intervention as necessary to safeguard procedural fairness and ensure that employers adhere to established legal and regulatory requirements when managing workforce changes.
Enforcement and legal consequences
The MOL has warned that employers who proceed with layoffs of Omani nationals without prior notification and approval will be held legally accountable. Non-compliant companies may face administrative and legal penalties, reinforcing the ministry’s role as both a supervisory and enforcement authority in employment matters.
This position signals a more proactive enforcement approach, particularly in sectors subject to public and parliamentary attention, and underscores that unilateral termination decisions involving Omani nationals carry heightened regulatory risk.
Government approach to workforce restructuring
While reinforcing approval requirements, the government has indicated that it does not seek to obstruct legitimate business restructuring. The MOL has stated that it does not intervene where employees accept the options proposed by employers during restructuring or settlement discussions.
Government involvement is generally limited to situations where disputes arise or where employers fail to comply with prescribed legal procedures. This reflects an attempt to balance business flexibility with employment protection, while ensuring that restructuring exercises involving Omani nationals are conducted transparently and lawfully.
Implications for employers and investors in Oman
Companies face heightened compliance risks when downsizing or restructuring. As such, employers operating in Oman should:
- Engage early with the MOL;
- Prepare clear economic and operational justification; and
- Factor in approval timelines when planning workforce changes.
Sectors with larger Omani workforces, such as telecommunications, energy, and utilities, are likely to face closer scrutiny. For foreign investors, the rules reinforce the need for careful workforce planning and regulatory risk management.
Key takeaways
Termination of Omani nationals now requires advance approval from the MOL, regardless of the grounds for dismissal. Employers that proceed with unilateral layoffs without ministerial consent expose themselves to legal and regulatory consequences.
As Oman continues to strengthen protections for its national workforce, strategic workforce planning, early regulatory engagement, and thorough documentation are becoming essential components of operating compliantly in the Sultanate.
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