Question

Question 1

1. Mr. Hilal joined bank Muscat in the IT department on the 20thof March 2002. As per the agreement with the employer, he is promised a starting basic pay of OMR 650 per month along with other allowances. His gross starting salary adding all allowances amounts to OMR 750. As per the terms and conditions in the contract, he is entitled for an increment (increment added to basic salary) after the completion of one year service.  He retired from service on 15th March 2020 when he was drawing a gross salary of OMR 1850 including all allowances OMR 350.

a) You are required to calculate the gratuity payable to Mr. Hilal. ​   ​      (5 Marks)

2. Mr. Ahmed Mohammed an expatriate joined as a doctor inone of the leading hospitals in Oman on 22nd June 2017. As per the labor contract he is entitled for a basic salary of RO.800 plus other allowances. His gross starting salary is worked out RO. 1250. On 4th April 2020, he submitted his resignation with sufficient notice period complaining against the employer not providing the safety and security equipment as he is given duty in the Covid 19 department of the hospital. Mr. Ahmed Mohammed asked the company to pay him his service benefits including gratuity for the period of his service. Company refused to pay him gratuity saying that the employee did not complete the tenure of the agreement.

a) Is he entitled for gratuity? If yes, calculate the amount of gratuity and the Article in the Labor Law which guarantees retirement benefits under such circumstances.

b) If not, give reason and the Article NO. In the Labor Laws which prohibits payment of service benefits under certain circumstances. ​​​​       (5 Marks)

Answer 1