Oman Labour Law

Known for its rich cultural heritage and growing economy, Oman is home to a diverse workforce. Given the fact it is a mix of Omani nationals and expatriates, Oman labor laws are crucial in maintaining a balanced relationship between employers and employees.

In Oman, labour laws are governed by Royal Decree No. 35/2003, setting out the rights and responsibilities of workers and employers. Whether you are an investor exploring business opportunities in Oman, employee, or an expatriate worker, understanding the provisions of Oman labour law is essential to ensure smooth working relationships.

In this blog, we take a look at the key provisions of Oman labour law. Read on to learn about employment contracts, working hours, wages, leave, termination, and more.

Employment Contracts in Oman

One of the foundational elements of labour laws in Oman is the requirement of an employment contract. The contract ensures that both parties are aware of their respective rights and obligations irrespective of the period being fixed or indefinite. Details like job title and description, employment period, compensation package, working hours along with benefits like insurance, additional allowances etc. need to be clearly mentioned in the document. It needs to be mentioned here that if an employee needs to undergo a probationary period, wherein the employment can be terminated by either party with minimal notice, it needs to be mentioned in the contract.

Working Hours in the Sultanate of Oman

When it comes to working hours in Oman, it consists of 48 hours spread across six working days in a week. Employees are required to clock in 8 hours per day from Saturday to Thursday with Fridays being the official rest day. Omani labour law also includes provisions for overtime pay if employees work beyond the standard 48-hour workweek. The compensation for overtime in the Sultanate of Oman is typically 1.25 times of the standard hourly wage for the first two hours of overtime, and 1.5 times of the hourly rate beyond that. It needs to be highlighted here that the employers are prohibited from making employees work for more than 12 hours per day, including overtime.

Leave Entitlements for Employees in Oman

Oman labour law offers several leave entitlements. These leaves are aimed at enabling employees to get rest or take care of personal matters. Let us look at the types of leaves available in Oman:

Annual Leave - Employees are entitled to 30 days of paid annual leave in the Sultanate. They can be availed in one go or split up, depending on the employer’s policy. The above mentioned leaves are offered after completing one year of service.

Sick Leave - In addition to the annual leaves, employees are entitled to 10 days of paid sick leaves annually. They can be availed after completing three months of service. It needs to be mentioned here that a medical certificate from a licensed doctor is required to validate the availed sick leaves.

Maternity Leave - Female employees are entitled to 50 days of paid maternity leaves in Oman including both pre and post-natal periods. There is the provision of extending the number of leaves in the case of complications. In addition to that, female employees are also entitled to two hours for breastfeeding every day after their return to work.

Public Holidays - Given the fact that Oman, like any other country, observes several public holidays, employees can enjoy these holidays with full pay. In case, an employee is required to work on a public holiday like Eid al-Fitr or National Day they must be compensated accordingly.

Salaries in Oman

As per Oman labour law, the minimum wage for employees working in the country is set at OMR 325 per month for Omani nationals. While for expatriate workers, the wages are generally determined by the terms agreed upon in the employment contract. Employers are required to pay the salaries on a monthly basis. In case of failure, it can lead to legal consequences. In addition to monthly compensation, employees are entitled to gratuity once the employment ends or is terminated.

In Oman, the gratuity benefit is calculated as follows:

● 15 days of wages for each year of service for the first three years.

● One month of wages for each year after three years.

Guidelines for Termination of Employment

Both employers and employees need to adhere to the guidelines laid down as per Oman labour law when it comes to termination of employment. Let us look at them:

Termination by Employer

When the employers terminate an employee they must adhere to specific circumstances like misconduct, failure to perform duties, or breach of contract. Depending on the condition of termination, employees are entitled to either notice periods or severance pay. In case, there is no valid cause of termination, employers must provide a notice period or compensation to the terminated employee. In case of notice period, it varies based on the length of employment, typically ranging between one to three months.

Termination by Employee

Employees can also choose to terminate their employment contracts by providing proper notice to their employer(s). If the employee resigns without any valid cause, they are required to compensate the employer for damages caused by their early termination.

In any case, the employee must be aware of the impact on their Oman work Visa status and must take appropriate action accordingly.

The authorities have designed Oman labour law to create a fair and equitable working environment for both employers and employees. By ensuring that the rights of employees are protected and setting out clear guidelines for employers, the law fosters positive labor relations and promotes a healthy, productive workforce.

So, understanding the guidelines and staying updated with the latest changes in Oman labour law helps in safeguarding your rights and ensuring compliance, irrespective of you being an Omani national or an expatriate working in the country. If you are an employer looking for company registration in Oman, our company setup experts at Gryffin Capitalist can guide you with the necessary steps and keep you updated with new changes to the labour law.