An employee of German nationality sued his employer for unlawful dismissal and claimed compensation. The Primary Court in Muscat sided with the employee and ordered the employer to pay the employee compensation, but this decision was later overturned by the Supreme Court in Muscat on the grounds that the Primary Court in Muscat had no jurisdiction to rule on this matter due to the existence of an arbitration clause between the employee and the employer. The Supreme Court ruled that the arbitration clause is invalid because it constituted a waiver of workers' rights that are guaranteed by the Labour Law and referred the case back to the Court of Appeal in Muscat to reconsider its merits.
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