Requirement for MOL Approval prior to Termination

The Ministry of Labour (the “MOL”) has issued an important directive affecting the termination of Omani national employees in the private sector. On 7 January 2026, the Minister of Labour confirmed — in response to a question raised by a member of the Majlis A’Shura — that employers are now required to notify the MOL and obtain formal approval prior to terminating the services of any Omani national employee.

This directive applies across the private sector and represents a significant regulatory development aimed at strengthening job security for Omani nationals.

Under the directive, employers must submit a formal termination request to the MOL for review, and no termination may be effected without the prior written approval of the MOL. Each request will be subject to detailed scrutiny, requiring employers to demonstrate clear and valid economic or operational justifications for the proposed termination, and any termination implemented without compliance may expose the employer to legal and administrative action.

Whilst the Oman Labour Law (Sultani Decree No 53 of 2023) does provide for certain circumstances pursuant to which either a prior notification to the MOL or an approval will be required, such steps are not required in all cases and, depending on the reason for termination, the Oman Labour Law permits Omani national employment termination without prior approval from the Oman authorities.

In contrast to the Oman Labour Law position, this new MOL directive imposes a mandatory requirement for prior notification and approval in all cases of termination of Omani national employees, effectively overriding the previous distinctions set out under the Oman Labour Law and increasing regulatory oversight of the Omani national workforce.

It is clear that Oman is taking proactive steps to retain its Omani workforce and promote and support its local economy. In light of the directive, employers are therefore advised not to proceed with any termination of Omani national employees without MOL approval, review and update internal HR and termination procedures accordingly, and factor MOL review timelines into restructuring or workforce planning.

How can we help?

If you require any support or are unsure about how the directive applies to your business, please do not hesitate to reach out to us.