The Sultanate of Oman is an Arab and Islamic country located on the southeastern coast of the Arabian Peninsula. It shares borders with the UAE, Saudi Arabia, and Yemen. Oman is an absolute monarchy and its current ruler, Sultan Qaboos bin Said al Said, is the third-longest reigning monarch in the world.
Oman is considered a high-income country that is mainly dependent on oil exports. Its petroleum reserves are the 25th largest in the world. It has one of the hottest climates in the world due to its location in the Persian Gulf with summer temperatures that can go up to 40°C (104°F). Wildlife includes the Arabian humpback whale, a species whose endangered status is being highlighted by whale-watching tourism.
Oman has over 4 million people, the majority of whom are Muslim with Christians, Hindus, and Buddhists forming a minority. Its largest city is Muscat with a population of just under 800,000 people.
While Oman's Labor Code does not explicitly define permanent employment, it does define indefinite-term contracts as those that:
Are concluded without specifying their duration
Are concluded for a period exceeding 5 years
If the original and renewed contract period exceeds 5 years
If the contract is not written or is a written contract with a fixed term, and its term has expired, and the 2 parties continue to implement it without a written agreement between them
If the employment contract is concluded to complete a specific job, and this takes a period exceeding 5 years
If the employment contract concluded to complete a specific work is renewed, and the period of completion of the original work and the work for which the contract was renewed exceeds 5 years
If the employment contractis concluded to complete a specific work, and its 2 parties continue to implement it after the completion of this work without an explicit agreement to renew it
Indefinite term contracts can be terminated at any time by either party by giving a notice at least 30 days in advance for employees on a monthly wage and 15 days for all others.
Oman's Labor Code requires employment contracts to be concluded in writing, written in the Arabic language, and drawn up in 2 copies. If the contract is drafted in a language other than Arabic, at least 1 copy in Arabic must be annexed to the agreement and approved by the 2 parties to the contract. If the contract is not made in writing, it is considered to be made for indefinite term. The contract must include the following information:
Name of the employer or establishment and address of the workplace
Name, date of birth, qualifications, designation, address, and nationality of the employee, as well as the nature of their job
Nature and type of work and duration of the contract, if applicable
Basic salary and allowances and other remuneration to which the employee is entitled
The notice period for termination of employment
Probationary period, if any
Commitment to respect religions and religious beliefs, the laws of the Sultanate of Oman, its customs and traditions, and not to engage in activities that harm the security of the country.
If any of the parties to the contract cannot read or write or does not understand the contract's language, it must be authenticated by the competent authority according to the law.
Employers can include a non-compete clause in an employment contract if the employee's work involves access to knowledge of work secrets or knowledge of the employer's clients. Such a clause must specify the location, type of work, and period of restriction, provided the place does not lie beyond the geographical area in which the employer carries out their activity, and the specified period does not exceed 2 years. The employer may not adhere to the agreement if they terminate the contract unjustly. Employers also have the right to demand compensation from the employee if they violate the clause.
Under the most recent Omani Labour Law, temporary and casual work are expressly recognised but only lightly regulated in the primary legislation. Casual work is defined as work that does not fall within the employer’s usual activity and does not exceed 6 months. Temporary work is defined as work that, by its nature, must be completed within a fixed period.
Beyond these definitions, as of the year 2025, the law does not set out detailed rules governing the rights, duration, or contractual treatment of temporary or casual workers.
Per Oman's Labor Code, an employee cannot be placed on probation for a period exceeding 3 months if they receive their monthly wages. The probationary period cannot exceed 2 months if the employee receives their wage in any other manner. An employee cannot be placed on probation more than once with the same employer. Also, any probationary period must be included in the service period if the employee has completed it. In all cases, any probationary period must be specified in the employment contract. After a notice of not less than 7 days to the other party, any one of the parties may terminate the contract during the probationary period if it becomes clear that continuation of employment is not suitable.
Oman's labor law stipulates that the standard workweek is 40 hours weekly or 8 hours daily, not including an hour per day for rest and eating. The period of continuous work must not be more than 6 hours. The maximum working hours for Muslim employees during Ramadan are 30 hours per week and 6 hours per day. Working hours for minors cannot exceed 6 hours per day. Part-time work must be at least 4 hours per day and must not exceed 25 hours per week.
Employees working more than the standard working hours are eligible for overtime. The total working hours in a day, including overtime, cannot exceed 12 hours.
Oman's Labor Code entitles all employees to a paid annual leave of 30 days. Employees can only take annual leave once they have worked for their employer for at least 6 months. Employers can grant special unpaid leave at the employee’s request, during which the employee must pay all Social Protection Fund contributions; the leave counts toward the employee’s service period but is excluded from the calculation of end-of-service gratuity.
Except for minors' leaves, it is permissible to divide an employee's annual leave according to work requirements. Employees who do not utilize their annual leave can accumulate up to 30 days of leave. They must go on leave for at least 30 days once every 2 years. If the employee agrees to receive compensation in lieu of their annual leave, the employer must pay employees their regular daily wage for any days of annual leave that the employee has not taken, and such an agreement must be in writing. Employees are entitled to receive their regular daily wage for the balance of their annual leave if they leave their employer before exhausting such leave.
Oman's Labor Code entitles employees whose illness is certified to 182 days of annual sick leave. The leave is granted as follows:
First 21 days of leave with full pay
21st to 35th day of leave with 75% of gross pay
36th to 70th day with 50% of gross pay
71st to 182nd day with 35% of gross pay.
Effective July 19, 2026, employers are liable to pay 1% of an employee's wages to the Sick Leave and Extraordinary Leave Insurance Branch of the Social Protection Fund to cover sick leave benefits. The employer must cover the wages for the first 7 days, and the remaining sick leave will be covered by the Sick Leave and Extraordinary Leave Insurance Branch.
A medical certificate must prove the employee's illness. In the event of a dispute, the matter will be referred to the Medical Commission.
Oman's labor law grants 98 days of maternity leave to female employees, during which the employee receives their full salary. This includes 14 days of prenatal leave and 84 days of postnatal leave. There is an option to extend the leave by another 98 days within a year of childbirth as unpaid leave. Employees also get 98 days leave in case of adoption, provided the child is under the age of 3 months.
Maternity leave benefits are paid from the maternity leave insurance branch of the Social Protection Fund. Employers are obligated to pay the monthly contributions of the maternity leave insurance branch at the rate of 1% of the wage per month. The amount of benefit paid during the leave is equal to 100% of the employee’s wage.
To be eligible for maternity allowance, the pregnancy must have progressed more than 25 weeks. If the child dies after the 25th week, the insured employee is still eligible for full maternity leave with pay.
Oman's labor law introduced a paid paternity leave for 7 days for fathers. This leave must be taken within 98 days of the child's birth. In case of mother's death during childbirth, the remaining maternity leave is transferred to the father.
Paternity leave benefits are paid from the maternity leave insurance branch of the Social Protection Fund. Employers are obligated to pay the monthly contributions of the maternity leave insurance branch at the rate of 1% of the wage per month. The amount of benefit paid during the leave is equal to 100% of the employee’s wage.
Per Oman's Labor Code, if an employment contract is for an indefinite duration, either of the parties may terminate it after giving written notice of at least 30 days to the other party. If the contract is terminated without notice, the party who terminates the contract must pay the other party compensation equal to the gross wage for the notice period or the remaining part thereof. A notice of termination issued by the employer to a worker on leave or public holiday will not begin until the day following the end of the leave or holiday. Employers must grant the employees a notice period, 10 hours paid off time per week to search for a new job.
During probation, contracts can be terminated by giving a notice of 7 days.
A fixed-term contract ends automatically upon expiry without notice, unless the contract stipulates a notice obligation.
Per Oman's Labor Code, employees who are not beneficiaries of social insurance end of service benefits are entitled to an end of service gratuity depending on their employment length. The amount of severance pay is equal to a month's wages for each year of service. The last basic wage of the employee is used for calculation. This end of service gratuity does not apply if the employee is entitled to benefits under the Social Protection Law.
