All eyes on scraping of NOC rule

Muscat: The Sultanate government’s decision to scrap the NOC (No Objection Certificate) rule from the New Year is one of the eagerly awaited labour reforms in the private sector. Speaking at a regional forum recently, Sayyid Badr bin Hamad bin Hamoud al Busaidi, Foreign Minister, said that the abolition of the NOC system will be a significant development in labour policy of the Sultanate. As per the decision, the expatriate on a resident visa may be transferred from one employer to another who has a license to recruit workers provided the evidence of the expiry of the contract or termination of the employment contract is presented with proof. There should be an approval of the competent government authority on the second employer’s contract with the expatriate, as per the rules. With only a few days left for its implementation, several expatriates are just hoping that the entire process will be a smooth affair. An employer will be allowed to have a legal (non-disclosure) agreement to keep the work secrets even after the worker has moved to work with another company or a business owner. One expatriate who commented on the non-competition agreement said, “This seems counter-productive to removing the NoC and seems very vague. If I read this correctly, the employer can still prevent the employee from working for a competitive company. It kind of defeats the entire objective of removing the NOC.” A domestic worker said, “Actions are necessary against the sponsors who violate the basic principles of the law for small monetary gains.' Still, the decision to scrap the NOC rule from January 2021 is termed as employee-friendly, but with enough protection to the employers. An Omani HR manager of a leading business group said, “There is no point in holding back an employee against his wish as the output will be below his potential. It allows looking for a fresh face who can bring new ideas and energy to the institution.” Speaking to the Observer, a senior executive of a leading business firm in Oman said, “Ultimately, employment is a contract between two parties. If there are clauses/terms offered and accepted between both the parties, then that will hold well.” He added that some safety clauses might be necessary if an employee in senior positions is moving to the competition. “Employment is a contract, and the terms have to be mutually agreed between both the parties.” The government stated that one of the main advantages is it will raise the level of competitiveness of the Omani worker compared to the expatriates by reducing the wage gap between them. “The decision will also contribute to reducing cases of non-Omani workers running away from employers, especially those under pressure from employers who have the right to issue a no-objection certificate and deprive a person to work in the sultanate within two years of the end of his contract,” the statement said.