Global HR Compliance in Oman

Oman offers a stable and strategically positioned labour market in the Gulf, attracting employers in energy, infrastructure, logistics, and professional services. Employment law in the Sultanate is formal and comprehensive, requiring companies to comply with strict provisions on contracts, working hours, termination, and nationalisation.

Employment relations are governed by the Oman Labour Law (Royal Decree No. 35/2003, as amended) and administered by the Ministry of Labour. The system is documentation-driven, and non-compliance, even procedural, can lead to fines, inspection findings, or suspension of work permits.

For global employers, operating in Oman requires more than payroll accuracy. Every employment contract must be registered, visas and sponsorships managed under local rules, and benefits aligned with statutory standards.

Acumen International supports companies hiring in Oman through a compliant Employer of Record (EOR) model. We enable you to engage professionals, local or expatriate, without establishing a legal entity, ensuring that contracts, immigration, payroll, and end-of-service benefits are managed in full alignment with Omani law.

Why Companies Hire in Oman

Oman continues to modernise its labour and immigration systems while maintaining close control over who may work in the country and under what sponsorship. For many international companies, this creates both opportunity and complexity.

Employers typically hire in Oman to establish an operational base for regional delivery, technical supervision, or government-linked projects. Foreign professionals remain essential in engineering, construction, energy, and finance, while localisation policies (Omanisation) require employers to balance expatriate expertise with the recruitment and training of Omani nationals.

At the same time, service-sector and project-based companies often need a limited number of employees on the ground — for client liaison, oversight, or contract fulfilment — without committing to full legal incorporation.

Acumen International enables this by providing a compliant employment framework that covers both Omani and expatriate staff, integrates work-permit sponsorship and payroll, and aligns with the Ministry of Labour’s inspection and reporting rules.

This talent engagement model allows companies to operate legally, meet localisation requirements, and maintain transparent employment records without establishing a permanent entity.

Employment Contracts in Oman

Employment relationships in Oman are regulated by the Labour Law under Royal Decree 53/2023.
Every employee must have a written contract registered with the Ministry of Labour. Contracts are usually bilingual in Arabic and English, but in case of conflict, the Arabic version prevails.

Contracts may be concluded for a fixed term or an indefinite term.
If a fixed-term contract expires and the employee continues working without renewal, it automatically converts into an indefinite contract.

Part-time or temporary contracts are recognised but must specify clear terms of engagement, including the number of hours, working days, and payment method.

Each employment agreement should include:

Job title and main duties
Duration of employment
Salary, allowances, and benefits
Working hours and leave entitlements
Termination procedures and notice period
Reference to applicable provisions of the Labour Law

Collective bargaining is permitted. Negotiations are held between the employer and either recognised trade unions or elected worker representatives where no union exists.

A properly executed and registered contract is a prerequisite for visa issuance and payroll registration, making it a central compliance requirement for all employers operating in Oman.

Probationary Period in Oman (2025)

Under Oman’s Labour Law (Royal Decree 53/2023), the probation period depends on how the employee is paid:

Up to three months for employees paid monthly
Up to two months for employees paid on another basis

The probation period must be clearly stated in the employment contract, and an employee cannot be placed on probation more than once with the same employer.

During probation, either party may end the employment relationship by giving at least seven days’ written notice.
If notice is not given, the terminating party must pay an equivalent of seven days’ wages in lieu.

Time spent on probation is counted as part of continuous service for all future entitlements, including annual leave, end-of-service gratuity, and other benefits, once the employee continues beyond probation.

Working Hours and Overtime in Oman

The standard working hours in Oman are eight hours per day and forty-eight hours per week, excluding rest breaks.
Employees may not work more than six consecutive hours without a break for food or prayer.

During the holy month of Ramadan, Muslim employees are limited to six hours per day or thirty hours per week.
The Ministry of Labour may issue directives that adjust hours for specific industries such as construction, hospitality, or retail.

Overtime

Any work performed beyond the standard daily or weekly limit is considered overtime.
Overtime must be approved by the employer and accepted by the employee.

Compensation for overtime is typically calculated as:

125% of the basic hourly rate for daytime overtime
150% of the basic hourly rate for night work
200% of the basic hourly rate or time off in lieu for work on public holidays or weekly rest days

Employers must keep accurate records of working hours and overtime.
The total number of working hours, including overtime, should not exceed limits prescribed by the Ministry of Labour except in exceptional cases approved by the authorities.

Annual Leave and Public Holidays in Oman

Employees in Oman are entitled to at least thirty calendar days of paid annual leave for every year of continuous service.
Leave accrues monthly and may be taken after completing six months of employment, subject to the employer’s scheduling needs.

Employers may postpone leave for up to one succeeding year if work conditions require it, but the employee must take at least two consecutive weeks of leave every two years.
Unused annual leave is compensated in cash at the employee’s basic salary rate when employment ends.

In addition to annual leave, employees are entitled to six days of emergency leave per year with full pay for urgent personal matters.

Public Holidays

Oman observes several paid public holidays each year, including:

Islamic New Year
Prophet’s Birthday
National Day (two days)
Renaissance Day
Eid Al-Fitr (three days)
Eid Al-Adha (four days)

Public holidays are fully paid and do not reduce annual leave entitlement.
If an employee works on a public holiday, they are entitled to either paid time off in lieu or additional compensation, as specified in the employment contract or company policy.

Sick Leave and Parental Leave in Oman

Sick Leave

Employees who are medically certified as unfit for work are entitled to sick leave for up to ten weeks in any one year, whether continuous or intermittent.
The entitlement is paid on a decreasing scale as follows:

First and second weeks – full pay
Third and fourth weeks – 75% of pay
Fifth and sixth weeks – 50% of pay
Seventh to tenth weeks – 25% of pay

An employer may request medical documentation from an approved healthcare provider.
If the illness continues beyond the permitted period, employment may be terminated in accordance with the law, following proper notice and settlement of dues.

Maternity Leave

Female employees are entitled to 98 days (14 weeks) of maternity leave with full pay.
The leave may cover both pre- and post-delivery periods, as agreed with the employer.
Maternity leave is available up to three times during the employee’s service with the same employer.

During maternity leave, employment is protected, and termination for pregnancy-related reasons is prohibited.
Female employees also have the right to unpaid childcare leave of up to one year to care for a child with a disability or serious health condition.

Paternity Leave

Under the 2023 Labour Law, male employees are entitled to seven days of paid paternity leave, which must be taken within 98 days of the child’s birth.

Termination and End-of-Service Benefits in Oman

Termination of Employment

Employment contracts in Oman may be terminated by mutual consent, by expiry of a fixed-term contract, or by notice from either party in accordance with the law.

For indefinite contracts, either party must give 30 days’ written notice if the employee is paid monthly, or 15 days’ notice in all other cases.

Notice must be given in writing, and the party failing to observe the required notice period must pay wages in lieu.

Termination during probation requires seven days’ notice.

Dismissal without notice is allowed only for serious misconduct defined by law, such as fraud, disclosure of trade secrets, intoxication at work, or repeated unauthorised absence.

Unlawful or arbitrary dismissal entitles the employee to compensation equivalent to at least three months’ gross wages, in addition to any other contractual entitlements.

Employee Benefits and Employer Obligations in Oman

Employers in Oman are required by law to provide certain mandatory benefits and to participate in the national social protection system. The current framework operates under the Social Protection Law (Royal Decree 52/2023).

For Omani nationals, total social insurance contributions equal 24.5 % of gross salary. Employers contribute 10.5 %, employees contribute 7 %, and the government adds 7%. These payments cover pensions, job security, and related social protection employee benefits.

Foreign employees are not included in the national insurance scheme. They remain entitled to end-of-service gratuity under the Labour Law unless an international agreement allows coverage under their home-country scheme.

Employers must also provide medical coverage for all employees, either through private health insurance or reimbursement of medical expenses. All costs related to employment visas, work permits, renewals, and repatriation at the end of employment must be borne by the employer.

In certain sectors such as construction and oil and gas, employers are additionally responsible for accommodation, transportation, and meal provision, as required by ministerial decisions. Employers must issue an end-of-service certificate on request, confirming the employee’s position, period of service, and final wage.

Non-compliance with employment registration, contribution payments, or documentation rules may result in penalties or suspension of work permits by the Ministry of Labour.

Plan Employment Costs in Oman with the Global Payroll Calculator

When hiring in Oman, salary alone does not reflect the full employment cost. Employers must consider social insurance contributions for Omani nationals, medical coverage, visa and permit expenses, and statutory end-of-service benefits for expatriates.

Acumen International’s Global Payroll Calculator helps companies forecast these total costs before making hiring decisions. The tool combines verified data on tax, social protection, and statutory benefits in Oman with real-time calculations of gross-to-net and net-to-gross pay.

By comparing Oman with other markets, employers can assess workforce budgets, identify compliance obligations, and plan for long-term cost efficiency. This supports faster, more informed decision-making, whether expanding regionally or building a permanent presence in the Gulf.

Global EOR Solutions in Oman by Acumen International

Expanding into Oman often starts before legal incorporation, when companies need to deploy project managers, engineers, or service staff on-site but lack the legal structure to employ or pay them directly.
Traditional options like outsourcing rarely meet compliance or control standards, especially when immigration, payroll and tax filings must align.

Acumen International enables companies to employ professionals in Oman legally and efficiently through our global Employer of Record solution.
We formalise employment under compliant frameworks that mirror local labour requirements while allowing the client to retain full operational oversight.

Our Global Employer of Record (EOR) model is particularly effective when:

You need to hire local or expatriate staff before entity registration is complete
Your existing Omani partner cannot lawfully payroll or manage your staff
You are coordinating regional projects that require local representation or technical oversight
You must integrate Omani hires into a global workforce under unified HR-compliance, payroll, and reporting

We manage employment contracts, payroll processing, statutory benefits, and end-of-service obligations under Omani law.
For expatriate staff, we coordinate immigration formalities through licensed local partners, including work authorisation, residence permits, renewals, and compliant offboarding.

This approach helps global companies operate legally, avoid misclassification, and maintain workforce continuity in Oman without delays linked to entity setup or complex sponsorship requirements.