Author: Riyadh Al-Balushi

The Ministry of Justice and Legal Affairs (MJLA) held that the Oman Housing Bank, a government-owned enterprise under the Oman Investment Authority, is exempt from value added tax (VAT).

The Ministry of Justice and Legal Affairs (MJLA) deemed that the allocation of a government building to a government entity does not automatically make that government entity a party to a construction contract relating to that building when another government entity has been explicitly assigned the obligations relating to this contract by royal decree.

The Ministry of Justice and Legal Affairs (MJLA) deemed that the first sale of real estate by the developer in integrated tourism complexes is not exempt from value added tax (VAT).

The Ministry of Justice and Legal Affairs (MJLA) deemed the Corporate Governance Principles for Government-Owned Companies issued by the Capital Market Authority (CMA) to be invalid due to the failure of the CMA to publish such principles in the Official Gazette and the lack of competence of the Executive President of the CMA to issue them. The MJLA also held that companies subordinate to the Oman Investment Authority are not exempt from the scope of such principles.

The Ministry of Justice and Legal Affairs (MJLA) deemed that the State Audit Institute (SAI) has a duty to release the confidential emails of a third-party held in its possession to support the defence of the government against the claims made by that third-party in an arbitration case.

An employee sued his employer for compensation for unpaid overtime working hours on the basis of two extra hours plus a one-hour break. The Supreme Court held that break time is not calculated as part of unpaid overtime.

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.

The Supreme Court held that the failure of the employer to impose a disciplinary punishment against an employee after the expiry of the deadlines stipulated by the Labour Law rendered the action taken by the employer against the violating employee illegal.

An Omani employee was terminated from his job for insulting a manager in the presence of other employees. He sued his employer for unfair dismissal and demanded compensation. The Supreme Court ruled that the termination of employment was valid, emphasising that any form of assault affecting a person’s dignity is deemed grievous under article 40(8) of the Labour Law of 2003.