Oman sets new 51-worker threshold for trade unions, expands employer obligations

Oman’s Ministry of Labour has introduced a new regulatory framework governing trade unions, sectoral general unions and the General Federation of Oman Workers (GFOW), setting a minimum workforce threshold for union formation while expanding protections and entitlements for employees involved in union activities.

Ministerial Decision No. 284/2026, issued in July, replaces the previous regulatory regime and establishes rules covering the formation, registration and operation of unions. The ministry said the decision is intended to strengthen worker representation and social dialogue while providing a clearer legal framework for relations between employers and employees. 

One of the most significant changes for employers is the introduction of a workforce threshold for establishing a labour union. A union can be formed in an establishment with more than 50 employees, effectively meaning that workplaces with 51 or more employees can establish one.

Employees in smaller establishments are not left without a mechanism for representation. Where a union cannot be established, workers can select between three and five representatives from among themselves. These representatives can act in matters covered by the regulations, including collective labour disputes, strikes and lockouts.

The new rules also place a range of practical obligations on employers where a union operates. Employers must provide facilities required for union activities, including suitable office space, equipment, computers, internet access, a landline and secure storage for documents.

Unions are also entitled to access certain administrative and financial information relating to employees’ rights, including information concerning wages, promotions, training and disciplinary measures, subject to applicable confidentiality requirements.

For HR teams, the provisions mean that employment records and decisions affecting workers may need to be maintained in a form that can be reviewed by authorised employee representatives.

The regulation also sets out statutory paid time-off arrangements for employees carrying out union duties.

At the workplace union level, members of the administrative board can take paid time off for union duties, board meetings, meetings with management, relevant training and official summonses related to union activity.

One administrative board member selected by the union can receive up to 30 working days of paid time off annually where the union has fewer than 100 members, and up to 90 working days where membership is more than 100 and up to 300. Where membership exceeds 300, the selected member can be seconded to the union on a full-time basis.

The entitlement is not restricted to administrative board members. General assembly members can receive up to 30 working days a year to attend general assembly meetings and activities organised by or with the union.

Similar provisions apply at sectoral union and GFOW levels. At the sectoral level, the chairperson and two administrative board members selected by the board are entitled to full-time secondment, while other board members can receive paid time off for official union duties. General assembly members can receive up to 30 working days annually for relevant meetings and activities.

At the GFOW level, the chairperson, deputy chairperson and the chairperson’s assistants are entitled to full-time secondment. Other board members can receive paid time off for meetings, conferences, committees and training, while general assembly members can receive up to 30 working days annually for GFOW activities.

The breadth of these provisions means employers with unionised workforces may need to account for employees holding responsibilities beyond the workplace union itself.

Employees who are seconded to union bodies or take authorised time off for union duties retain their gross wages, promotion rights, annual or periodic increments and other rights provided under applicable laws and workplace policies.

The period of secondment or paid time off also continues to count towards an employee’s length of service.

For employees on full-time union secondment, eligibility for increments and promotion is to be assessed using the more favourable of their most recent performance appraisal or their average appraisal outcome over the preceding three years.

The provisions therefore seek to prevent employees from suffering a financial or career disadvantage because of legitimate union responsibilities.

The new framework also places restrictions on employer conduct towards union activities.

Employers must not take measures that obstruct the work of a union. They are also required to facilitate the election of union administrative board members and comply with statutory requirements relating to time off and secondment. 

Union officials receive additional protection against workplace transfers. A member of the administrative board of a labour or sectoral union cannot be transferred from the workplace designated as the union’s headquarters or another location designated for union activities without the employee’s consent.

The regulation also establishes a Legal Protection Committee to examine alleged violations involving union administrative board members, sectoral unions, the GFOW, founding and preparatory committees and employee representatives. The Ministry of Labour said the committee is intended to strengthen legal safeguards for those involved in legitimate union activity.

Employers may also have to provide transportation for union members undertaking official union duties where the journey is 150 kilometres or more from the relevant union headquarters, provided the employer receives at least five days’ prior notice unless the matter is urgent.

The 51-worker threshold does not automatically invalidate unions that already exist.

The Ministry of Labour has said existing trade unions, sectoral general unions and their current administrative boards will continue exercising their legal powers until the end of their existing terms. 

For employers, the immediate priority is therefore to understand which existing union arrangements remain in place and where the new rules may affect future union formation.

The regulation also gives unions broader functions, including representing workers’ collective interests, participating in workplace regulations, accessing relevant employment information and negotiating collective labour agreements. 

For HR and business leaders, the changes make union-related compliance a more structured workplace responsibility. Employers will need to monitor workforce size, understand employee representation arrangements in smaller workplaces, provide required facilities and recognise statutory paid time-off and secondment rights.

They will also need to ensure that line managers understand that union-related absence may be a legal entitlement rather than a discretionary workplace arrangement, and exercise particular caution when making decisions involving union officials or employee representatives.

The Ministry of Labour said the new framework forms part of its wider effort to modernise Oman’s labour legislation and strengthen institutional dialogue between employers and workers.