NOC Update: What does it mean to me?

On June 7th 2020, Royal Oman Police had released decision number 157/2020. This decision removed the requirement for non-Omani employees to obtain a No Objection Certificate from the current employer when transferring to a new employer. This decision will come into force on 1st January 2021.

Previously, when the non-Omani employee resigns or is terminated or his/her contract is not renewed, he/she cannot work in Oman in any field for two years without a letter from the previous employer allowing him/her to do so. This is no longer the case as of decision 157/2020.

What does this mean for Employees?

This allows employees to be more flexible when thinking about changing careers or changing employers without having to think about the stress of relocating to a different country and how this will affect his/her family and personal life.

This could mean that employers will now work harder to keep their current staff by providing financial benefits and a more comfortable working environment in order to compete with other workplaces to retain their staff.

What does this mean for Employers?

This new decision puts employers under pressure to find ways to retain their staff. Employers will want to secure their staff and find legal ways to stop their employees from being recruited by their competitors and stealing their clients/customers along with their trade secrets. There are a few ways employers can focus on retaining their staff:

Legal Approach

There is a legal way to stop your employees from being poached by competitors – this is through a Non-Compete Agreement . This is an agreement is between the employer and the employee that is used to stop the employee from entering into competition during and after their employment. Employers can use this agreement to preserve trade secrets, strategy and pricing mechanisms within their organization and maintain their clientele. Click here to see what a non-compete agreement will look like.

Financial Approach

One of the ways you can improve employee retention is by providing financial incentives. If giving your employees a raise is not possible, there are other ways you can do this. For example, implementing a target system for the employees so once they achieve a yearly target they will get a bonus or you can allow commissions on sales. This way the company can increase their sales by motivating their employees to sell more.

Employers should also try and benchmark their benefits to their competitor – this means looking at what benefits the competitors in the same field provide their employees and do the same. This can be as simple as improving healthcare packages, fuel allowances, accommodation etc.

Social Approach

It has been proven in the past that providing a comfortable and supportive working environment helps retain staff. Many employees struggle with being heard by their employers and being appreciated for their hard work – a little praise goes a long way. This can create a family-like atmosphere in the business and employees will be inclined to be loyal and less likely to transfer to another competing business.

Improving working conditions as mentioned above allows employees to become more comfortable and invested with their current employer. They will feel cared for resulting in loyalty to the business which will ultimately stop them from moving to your competitors.

Note: These approaches can apply to both Omani and non-Omani employees to help retain staff in the business.

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I am a Legal Consultant at a local law firm in Oman. I completed my LLB in the UK and then completed my LLM in Commercial Legal Practice and Legal Practice Course at BPP London. I am a strong believer of easily accessible legal advice to all members of the community.