Labour law · Supreme Court of Oman

Joint liability of former and new owners for workers’ rights

On a full or partial transfer of a business, the former and new owners are jointly liable for rights arising from employment contracts.

CourtSupreme Court of Oman
DivisionCommercial Department
Challenge№ 777/2016
Session dateDecember 31, 2017
Material formatPublished legal principle

01

Legal issue

On a full or partial transfer of a business, the former and new owners are jointly liable for rights arising from employment contracts.

02

Published principle

The Arabic text published by the Supreme Court is the primary source. The English translation was published by the Technical Bureau; Russian and Chinese are unofficial Smart Global Capital editorial translations.

This is a published legal principle—an extract selected by the Supreme Court of Oman Technical Bureau—not the full text of the judgment.

If a business or activity is transferred in whole or in part, workers’ rights remain a joint liability of the transferor and transferee. The former and new owners are jointly and severally liable for all rights arising from the employment contract.

03

Applicability

The holding arises under the former labour regime and must be compared with Labour Law 53/2023. It is necessary to identify whether an operating business was transferred, which workers and liabilities are covered and what transaction-specific rules apply. This is an account of the principle, not a full judgment translation.

04

Related instruments

  • Former Labour Law, Royal Decree No. 35/2003
  • Labour Law, Royal Decree No. 53/2023

05

Official source

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