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Oman End of Service Gratuity
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kylemcgee



Joined: 04 Nov 2009
Posts: 85
Location: Various..

PostPosted: Sun Jan 06, 2013 12:31 pm    Post subject: Oman End of Service Gratuity Reply with quote

Hello -

Has anyone here not been paid their EOS gratuity because their agency said they had already included it in their monthly salary? I have something in my contract that specifies 'In lieu of gratuity' and has a monthly amount. My agency says they don't need to pay my EOS gratuity and this seems quite dodgy...

Is this even legal?

Thanks!

Kyle
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veiledsentiments



Joined: 20 Feb 2003
Posts: 15857
Location: USA

PostPosted: Sun Jan 06, 2013 4:09 pm    Post subject: Reply with quote

You will need to do the math to see. Since it is in your contract, it is certainly legal for them to do it this way. In fact, IMHO, it is a better way to do it. The question becomes... does the "salary" you were offered before arrival match the "salary" on the in-country signed contract. Did the offer letter say this too?

I guess it comes down to the fact that you didn't question it before you signed the contract... so now I'd say that you are probably stuck with this. You could query the Ministry of Labor on it - if you think you can prove a bait and switch situation.

One needs to check the salary/benefits portion of your contract before you sign it in-country.

I would name the recruiter so that others realize what they are doing.

VS
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kylemcgee



Joined: 04 Nov 2009
Posts: 85
Location: Various..

PostPosted: Sun Jan 06, 2013 4:53 pm    Post subject: Reply with quote

Thanks for the quick reply.

I'm actually really good about reading my contracts, but I didn't think much about a monthly amount replacing my EOS gratuity. As I said, the only thing labeled in the contrat says 'in lieu of gratiity' with nothing about it being the EOS gratuity. I was aware of the gratuity, but didn't know the company meant the same thing. Yes, the amounts somewhat make sense, but not really. And it isn't clearly written.

The agency was Al Nawa and they have been quite poor in a number of ways. They also don't give yearly flights and they rarely respond to problems or issues when they arise.

Also, in reading the Omani Labour Law, I don't believe this is legal. The law says the amount is paid at the end of service, not in monthly payments. The total salary was about the same as other agencies which give flights and the gratuity separately from the salary..

Often the teachers and other service people don't understand that the law of Oman protects employees very well. A contract can not superseed the law, so it really doesn't matter what it says at times.

I was more asking if anyone had this experience before and if it was legal.

Take care -

Kyle


veiledsentiments wrote:
You will need to do the math to see. Since it is in your contract, it is certainly legal for them to do it this way. In fact, IMHO, it is a better way to do it. The question becomes... does the "salary" you were offered before arrival match the "salary" on the in-country signed contract. Did the offer letter say this too?

I guess it comes down to the fact that you didn't question it before you signed the contract... so now I'd say that you are probably stuck with this. You could query the Ministry of Labor on it - if you think you can prove a bait and switch situation.

One needs to check the salary/benefits portion of your contract before you sign it in-country.

I would name the recruiter so that others realize what they are doing.

VS
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veiledsentiments



Joined: 20 Feb 2003
Posts: 15857
Location: USA

PostPosted: Sun Jan 06, 2013 5:46 pm    Post subject: Reply with quote

Quote:
the contrat says 'in lieu of gratiity' with nothing about it being the EOS gratuity

I think it's pretty clear myself and certainly legal. The labor law says that they have to pay a gratuity for each month worked. If they choose to pay it each month rather than at the end of the contract, I can see no illegality there and doubt that the Ministry will either.

After all, there have been employers that pay at the end of each year of a multi-year contract rather than all at the end. I don't see your situation as any different. You would need to prove that you were mislead and your misunderstanding of 'gratuity' probably won't be enough.

But only they can answer the question... not some TEFLer... Cool

VS
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kylemcgee



Joined: 04 Nov 2009
Posts: 85
Location: Various..

PostPosted: Mon Jan 07, 2013 1:31 am    Post subject: Reply with quote

Again, I would question the legality as it doesn't mention the option to include it monthly in the law. Additionally, the word gratuity is too vague (probably on purpose) and it could mean any bonus paid at any time. It doesn't necessarily mean EOS gratuity. It simply isn't clear.

Anyways, I hope others have some thoughts as to the legality and I am also curious to know if anyone else has something like this in their contract.

I have contacted a lawyer. We'll see what happens.

Take care -

Kyle

veiledsentiments wrote:
Quote:
the contrat says 'in lieu of gratiity' with nothing about it being the EOS gratuity

I think it's pretty clear myself and certainly legal. The labor law says that they have to pay a gratuity for each month worked. If they choose to pay it each month rather than at the end of the contract, I can see no illegality there and doubt that the Ministry will either.

After all, there have been employers that pay at the end of each year of a multi-year contract rather than all at the end. I don't see your situation as any different. You would need to prove that you were mislead and your misunderstanding of 'gratuity' probably won't be enough.

But only they can answer the question... not some TEFLer... Cool

VS
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veiledsentiments



Joined: 20 Feb 2003
Posts: 15857
Location: USA

PostPosted: Mon Jan 07, 2013 1:42 am    Post subject: Reply with quote

Do let us know how it plays out... you've got me curious now. Cool And newbies will surely want to know if they get into a similar situation.

VS
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Sleepwalker



Joined: 02 Feb 2007
Posts: 355
Location: Reading the screen

PostPosted: Tue Jan 08, 2013 10:44 am    Post subject: Reply with quote

I was offered the option of being paid my gratuity in my monthly salary once but declined. It does mean that some companies must do this.

I'm more concerned about the comment regarding not paying yearly flights - surely all agencies provided annual air tickets?
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kylemcgee



Joined: 04 Nov 2009
Posts: 85
Location: Various..

PostPosted: Tue Jan 08, 2013 11:51 am    Post subject: Reply with quote

Yes, surprisingly some agencies do not pay flights.. and you often don't have a choice about which agency wants to hire you even for the same school.. Sad

Sleepwalker wrote:
I was offered the option of being paid my gratuity in my monthly salary once but declined. It does mean that some companies must do this.

I'm more concerned about the comment regarding not paying yearly flights - surely all agencies provided annual air tickets?
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kylemcgee



Joined: 04 Nov 2009
Posts: 85
Location: Various..

PostPosted: Tue Jan 08, 2013 11:56 am    Post subject: Reply with quote

VS -

Looks like you were right. I have no recourse according to the lawyer I talked to. Employers can pay monthly if they'd like. The language of 'gratuity' vs. 'End of Service Gratuity' is quite dodgy, but could probably not be challenged in Oman. Of course in the US or UK, it could probably be fought..

The owner did say he would add 'End of Service' to 'Gratuity' for future contracts, but of course that doesn't help me.. Smile

Well live and learn.. nothing can be done it seems..

Thanks for the advice -

Kyle

veiledsentiments wrote:
Do let us know how it plays out... you've got me curious now. Cool And newbies will surely want to know if they get into a similar situation.

VS
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bane14



Joined: 04 Feb 2014
Posts: 6

PostPosted: Thu Feb 06, 2014 5:41 pm    Post subject: Reply with quote

Guys, sorry for reserructing this thread but I need your valuable advice.

I am about to leave Oman for good, and my employer has a history of playing with final settlements and gratuities.

I have my 7 year gratuity and some annual leaves.

What to do if my employer plays tricks and says we can't pay you now and we will send to your account or something like that.

How can the Ministry of Manpower help me here? Or is it useless to go there? I heard the cases take as much as 1 year to resolve.

Has anyone faced similar position? Or has any insight what can be done?

Please help me I am in a situation.
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Sleepwalker



Joined: 02 Feb 2007
Posts: 355
Location: Reading the screen

PostPosted: Thu Feb 06, 2014 7:44 pm    Post subject: Reply with quote

'Upon termination, an expatriate employee (an Omani employee would be governed by Social Insurance Law), would be entitled to receive end-of- service gratuities for the entire period of his/her services at the rates referred to above. If the period of employment service is less than one year, the expatriate employee may not be entitled to receive any end-of-service gratuities.

The end-of-service gratuity is usually paid in addition to any compensation which the local court may award to an employee whose employer’s action is adjudged to be unfair or abusive towards the employee.

Omani courts have jurisdiction to hear any employment related disputes which may arise between employees and employers. Initially, disputes are referred to the Labou9r Dispute Settlement Division, which acts as mediator for the employees and employers to reach an amicable settlement of the dispute. Failure to amicably settle could lead to litigation before the Primary Court.' (http://omanlawblog.curtis.com/2009/03/omani-constitution-guarantees-omani.html)

Take some advice. If you leave the country and cancel your visa, you will have little chance of getting monies owed. I have heard that if an employee registers a case at the Labour Court then the sponsoring company must pay the accommodation costs until the case is resolved.
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bane14



Joined: 04 Feb 2014
Posts: 6

PostPosted: Fri Feb 07, 2014 9:28 am    Post subject: Reply with quote

Sleepwalker wrote:
'Upon termination, an expatriate employee (an Omani employee would be governed by Social Insurance Law), would be entitled to receive end-of- service gratuities for the entire period of his/her services at the rates referred to above. If the period of employment service is less than one year, the expatriate employee may not be entitled to receive any end-of-service gratuities.

The end-of-service gratuity is usually paid in addition to any compensation which the local court may award to an employee whose employer’s action is adjudged to be unfair or abusive towards the employee.

Omani courts have jurisdiction to hear any employment related disputes which may arise between employees and employers. Initially, disputes are referred to the Labou9r Dispute Settlement Division, which acts as mediator for the employees and employers to reach an amicable settlement of the dispute.

Failure to amicably settle could lead to litigation before the Primary Court.' (http://omanlawblog.curtis.com/2009/03/omani-constitution-guarantees-omani.html)

Take some advice. If you leave the country and cancel your visa, you will have little chance of getting monies owed. I have heard that if an employee registers a case at the Labour Court then the sponsoring company must pay the accommodation costs until the case is resolved.


Thanks for the reply.

I am not being terminated. Will resign and even serve a notice period.

Any ideas or reference for a good lawyer?
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Sleepwalker



Joined: 02 Feb 2007
Posts: 355
Location: Reading the screen

PostPosted: Fri Feb 07, 2014 9:49 am    Post subject: Reply with quote

I think termination, in this context, means termination of contract by either party
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bane14



Joined: 04 Feb 2014
Posts: 6

PostPosted: Fri Feb 07, 2014 11:20 am    Post subject: Reply with quote

Yup correct. Any experiience of such you heard before ?
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Whatever will be



Joined: 05 Feb 2014
Posts: 97

PostPosted: Sun Feb 09, 2014 9:28 am    Post subject: No annual flights and other perks Reply with quote

My contract also has no annual flights or end of service gratitude payment.

Recruiters have the upper hand in this "bait and switch" game.
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