Hire in Oman

The employment contract must include the following information:

• The name of the employer, establishment and address of the workplace.
• Details about the worker, including name, date of birth, qualifications, occupation, place of residence and nationality.
• Specifications of the type of work, its conditions and the duration of the contract (if it is for a definite period).
• Details on the basic wage, along with any bonuses, allowances, benefits or rewards entitled to the worker under the applicable conditions of service, as well as the agreed date for the payment of the wage.
• The stipulated notice period when either party does not wish to renew the contract. The employer must give a notice period of at least one month to the worker.
• Commitment to respecting religions, religious beliefs and the laws, customs, and traditions of the Sultanate of Oman, as well as a pledge not to engage in activities that could endanger the security of the Sultanate of Oman.

In Oman, the law stipulates that foreign employees must obtain prior approval from the Ministry of Manpower and immigration authorities before being hired under local employment contracts. The extent of background screening conducted by the authorities varies depending on the individual’s nationality.

It is permissible for employers in Oman to acquire less comprehensive information from background checks compared to practices in other jurisdictions. In many instances, employees are typically responsible for providing the required information themselves, as opposed to the employers obtaining it through extensive background checks.

The probationary period for employees in Oman is regulated as follows:

• For employees receiving monthly wages, the probation period must not exceed three months.
• For those compensated through means other than monthly wages, the probation period is limited to two months.
• An employee is allowed only one probationary period with a particular employer. Successfully completing the probationary period is credited towards the worker’s overall service period.

Both the employer and the employee retain the option to terminate the contract during the probation period. However, a minimum notice period of seven days must be provided to the other party in the event of termination.

Under the new Oman Labor Law, there have been adjustments to working hours and additional provisions:

• The daily working hours have been reduced from 8.5 hours to 8 hours, resulting in a standard 40-hour workweek excluding breaks.
• The mandatory daily break time has been increased from 30 minutes to one hour. The weekly rest period remains unchanged at two consecutive days.
• Continuous work hours must not exceed six hours.
• The new law introduces a remote work system, allowing employees to perform their duties using information and communication technology either within or outside the workplace, either partially or entirely.
• Mothers returning to work from maternity leave are entitled to a daily one-hour nursing break, which is considered part of their working hours.
• The working hours during Ramadan remain the same as before, with Muslim employees working six hours per day and 30 hours per week.

In Oman, a worker may be eligible for overtime pay or compensatory time off, contingent upon when the additional hours are worked and provided that the total hours worked in a day do not exceed 12 hours.

The overtime rates have been adjusted, particularly for extraordinary overtime required to meet specific conditions outlined in Article 72. The new rates are as follows:

• An increase of 50% for overtime worked during daytime hours.
• An increase of 75% for overtime worked during night-time hours.
• A significant increase of 200% or the option of receiving two additional rest days in lieu of overtime pay when overtime is worked on an official holiday.

The minimum wage in Oman is set at 325 OMR (Omani Rials) per month. Within this structure:

• A minimum salary of 225 OMR is specified.
• An additional 100 OMR must be paid as a bonus.

Either party, the employer or the employee, can terminate the contract for any legitimate reason. The terminating party must give a minimum notice period of 30 days, or any other period specified in the employment contract. During the notice period, the employment contract remains valid, and the employee is obliged to continue working. However, the terminating party has the option to pay compensation in lieu of notice if it chooses to terminate the contract without notice. Compensation in lieu of notice is calculated as an amount equivalent to the employee’s wage for the notice period, with proportional adjustments if partial notice has been given.

• An employee terminated for gross misconduct forfeits notice pay and end-of-service gratuity.
• Health reasons alone are not valid grounds for termination and any agreement contrary to this is void. Termination based on gender, ethnicity, race, religion, disability, pregnancy, childbirth or breastfeeding is explicitly prohibited.
• Redundancy is now recognized as a valid ground for termination. However, employers cannot cite financial loss as a reason for termination. A committee reviews redundancy requests and may propose alternatives to termination.
• Employers can terminate employees for poor performance but there must be prior notification and a six-month improvement period.
• Failure to follow disciplinary procedures during termination and dismissing an employee for raising complaints against the employer is considered arbitrary unless the complaint is proven malicious.
• Employers must pay all owed benefits immediately on the termination date. In the case of resignation, a seven-day period is granted to pay benefits.
• Employees served with notice of termination are entitled to 10 paid hours per week for job searches.

Non-compete clauses can be agreed upon if the employee has access to confidential information or the employer’s clients. Such clauses are limited to a maximum of two years and are geographically restricted to where the employer conducts its business activities.

Under the New Oman Labor Law, the minimum arbitrary termination compensation award remains at three months’ pay but it is now capped at a maximum of 12 months’ pay. Similarly, for early termination of a fixed-term contract, the termination compensation ranges from three to 12 months’ salary.

For end of service gratuity, the following apply:

• The calculation is based on the last basic salary (exclusive of allowances), which is 30 calendar days’ basic pay for each year of service, from the first year of service.
• The New Law allows pro-rata payments for parts of a year, even if the employee has completed less than one year of service.
• Non-Omanis who are not beneficiaries of social insurance are entitled to a gratuity of not less than a basic salary for each year of service.
• This provision is in effect until the enforcement of savings systems introduced by the Social Protection Law issued by Royal Decree 52/2023.
• Employers must settle the entitlement for the period until the implementation of the savings system by transferring it to the said saving system or to the employee, provided the settlement is calculated on the basic salary as of the settlement date.

Under the new Oman Labor Law, various types of work have been introduced and are subject to further regulation by a decision of the Minister. These new types of work include:

• Work that is not inherently included within the regular activities of the employer.
• Work that is of a temporary nature.
• Employment that is on a part-time basis.
• Work performed outside the establishment’s headquarters using information technology and communications within the Sultanate of Oman.

While there is currently no detailed clarification provided for casual work, temporary work and part-time work, the definition of remote work explicitly specifies that it involves an employee performing all or part of their duties using information technology and communications within the Sultanate of Oman. This distinguishes the definition from that in the UAE by emphasizing that remote work must be conducted within the borders of Oman.

In the absence of a dedicated data protection law, the Electronic Transactions Law in Oman may address certain aspects related to the handling, processing and transfer of personal data. The scope is limited to electronic transactions.

In all cases, the salary must be payable within three days from the end of the period in which it becomes due. If an employer fails to pay the employee for more than two consecutive months, the employee has the right to terminate employment as prescribed in the New Law.

• Employees are entitled to 30 days of paid leave per year after completing six months of service.
• Non-Omani employees are entitled to a return ticket to spend their leave and resume work.
• Employees are allowed to carry over up to 30 days of leave into the next year.

The New Oman Labor Law increases employees’ entitlement to paid sick leave from 10 weeks to up to 182 days per annum.

According to the following conditions, employees receive:

• 100% pay for the first 21 calendar days
• 75% pay from the 22nd to the 35th calendar day
• 50% pay from the 36th to the 70th calendar day
• 35% pay from the 71st calendar day to the remaining 182 calendar days

Employers are obliged to pay salaries during sick leave until the relevant provisions of the Social Protection Law come into force. Once the Social Protection Law is in effect, salaries during sick leave will be funded from the Social Protection Fund.

If an employee’s absence due to sickness exceeds three months in one year, whether continuous or interrupted, and after exhausting the sick leave of 182 days, the employer has the right to terminate the employment.

Maternity leave has increased to 98 days under the New Oman Labor Law.

The New Oman Labor Law allows female employees to request up to one year of unpaid leave following the birth of their child. If a female employee opts for this unpaid leave, she is responsible for paying her own employee social contributions to the Social Protection Fund (when established), as well as the employer’s and government’s contributions during the leave period.

The New Oman Labor Law introduces paternity leave, allowing fathers to take seven days of leave. This leave is provided under the condition that the child is born alive. The father is required to take this leave within 98 days of the child’s birth.

• Three days in case of the death of parent, grandparent or sibling
• Two days in the case of death of aunt or uncle
• 10 days in the case of death of wife or child
• 130 days for a Muslim female employee in the case of the husband’s death
• 14 days for a non-Muslim female employee in the case of her husband’s death

Employees receive three days of leave in the case of marriage.

• Hajj leave: 15 days once throughout the period of service, provided one continuous year spent in service of employer.
• Examination leave: 15 days in a year for Omani employees who are taking exams enrolled in school, college, university.
• Caregiver leave: 15 calendar days leave per year for Omani national employees to accompany a patient (the patient must either be a spouse or have a relationship up to the second degree with the employee).
• Special Leave Without Pay/Emergency Leave: Employees are now allowed to request special leave without pay subject to the employer’s consent, and there appear to be no time restrictions. During the duration of the special leave, the employee is responsible for bearing all social security contributions (if any) on behalf of themselves, the employer, and the government.

1. Hijri New Year (Muharram 1st)
2. Prophet’s birthday (12th of Rabi’ al-Awwal)
3. Isra and Miraj (27th of the month of Rajab)
4. The Glorious National Day (November 18-19)
5. The day the Sultan assumed the reins of power in the country (January 11)
6. The blessed Eid Al-Fitr (from day 29 of the month of Ramadan until third of the month of Shawwal)
7. The blessed Eid Al-Adha (from day 9 to 12 of the month of Dhul-Hijjah)