Nepal-Oman Labor Agreement Reaches Final Stage, Draft Approved

The long-awaited Nepal-Oman labor agreement has now reached its final stage. The Ministry of Labor, Employment, and Social Security has sent the draft of the labor agreement for approval to the Cabinet.

According to the Ministry's Deputy Secretary and Spokesperson, Pitambar Ghimire, the draft sent by Nepal was approved by the Omani government. Once the Cabinet approves the draft, Nepal will formally send a notice to the Omani government for signing the labor agreement. Oman will then set a date for the signing, and both countries are preparing to formalize the labor agreement.

Nepal and Oman have maintained diplomatic relations for over 50 years, but agreement on labor issues has been elusive despite multiple rounds of proposals and exchanges.

An initial draft of the agreement was prepared in 2019, which included provisions for sending Nepali workers to Oman at zero cost. However, the agreement stalled after Oman changed its labor laws. Nepal then raised concerns about various provisions related to worker welfare, leading to further delays.

When Oman's Foreign Minister, Sayyid Badr Hamad Hamoud al-Busaidi, visited Nepal last year, there were hopes of finalizing the labor agreement. However, the Nepalese side insisted on further amendments to the draft, delaying the signing.

In recent years, Oman has made significant amendments to its labor laws, ensuring important rights such as wage protection, social security, mandatory health insurance, 182 days of leave, the right to change employers if wages are not paid, and provisions for employers to bear the costs in labor disputes. With these changes, Nepal has renewed positive and constructive dialogue, believing that the agreement will ensure worker protection.

Currently, around 25,000 Nepali workers are employed in Oman, most of them as domestic workers, with some also working in the construction sector. The Ministry of Labor believes that this agreement will help reduce illegal labor activities and improve the legal framework for sending domestic workers to Oman, with provisions for zero-cost, 24-hour insurance, and employers bearing all expenses.

While both countries have agreed on the terms of the draft, Nepal has insisted on clearly defining the legal obligations and responsibilities of both governments and employers, which has taken time to finalize. The agreement will clearly outline the duties of Nepal, the Omani government, and employers.

So far, Nepal has signed labor agreements with 12 countries, including the UK in 2022, Israel in 2020, UAE in 2007/2019, Mauritius in 2019, Japan in 2009/2019, Malaysia in 2018, Jordan in 2017, Bahrain in 2008, South Korea in 2007, and Qatar in 2005.

This agreement is expected to open new opportunities for Nepali workers and ensure greater security and protection for them in Oman.