- Overview: Oman
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Oman
The war for global talent has never been tougher. Attracting and keeping sought-after international employees requires knowledge. Whether your company is already engaging or planning to engage global workforce in Oman, you need to trust that your operations are executed without flaw and without any unnecessary risks.
Businesses of all sizes face a devastating lack of information and support on global employment, taxation, and immigration in Oman. There’s a common and significant gap between what’s required to be 100% compliant and what most organizations actually have at their disposal.
Acumen International can fill the gap in fragmented Global HR Compliance knowledge
We are experts in global workforce employment in Oman, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
We act as an information service for corporate clients, agencies, and independent contractors and freelancers. Our Global HR Compliance service in Oman will help you:
- Navigate legislation and local nuances of Oman. You need to know what is acceptable and what can expose you to employment litigation as well as employee / independent contractor misclassification risk in Oman.
- Avoid areas of possible risk. Certain areas and activities can create unnecessary risk, such as employer-employee relations. We can help you with worker classification, payroll and tax calculations, and social cost contributions.
- Handle currency exchanges and local invoicing in Oman. We save you time and effort, freeing you from having to understand complicated regulations and tax calculations written in the local language and subject to frequent changes.
- Create employment contracts and handle compliant engagements. Our objective is to assist you with international HR compliance issues and offer you the best payment and taxation options in Oman.
- Manage expatriate immigration and visa support nuances in Oman. Acumen International provides information about the best scenarios of expat immigration and employment.
- Handle global recruitment issues. We can help you select the person and then employ him with our help. We advise you on local employment laws and implied compliance risks to determine the most cost-effective, compliant, and risk-free solution for you.
- Withdraw from the region in the least risky and most cost-effective way. If you choose to do so, we can help you withdraw from the region as simply as possible.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Oman.
Hiring and Firing Workforce in Oman Guide
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Oman Guide below will help you understand the nuances of labor legislation in the country.
There are two main reasons for companies hiring foreign workforce:
- Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
- Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.
After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.
If you need to hire foreign workforce in Oman so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.
With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.
See the guide below for a general overview of labor rules and regulations in Oman. Or contact us if you need to employ workers in Oman or would like to get more details.
# Employment contracts
Oman`s legislation requires the employment contract to be in writing withat least one copy to be in Arabic. The Labour Law recognises both limited period contracts and unlimited period contracts.The maximum duration for a limited period contract is five years.
# Minimum (Statutory) Employment Rules and Regulations in Oman
# Hours of work:
Subject to certain exceptions, the maximum time an employee may work per day is 9 hours including at least a 30 minutes break with a maximum of 45 hours per week.
# Probation period:
The Oman`s legislation entitles an employer to impose a one-time probationary period of three months on the employee commencing from the date of the employee commencing his/her employment with the employer. If a probationary period is implemented it must also be provided for in the employment contract.
# Annual leave:
An employee is entitled to 30 calendar days leave per year. Additionally, subject to certain exceptions an employee is also entitled to two days of rest after five continuous days of work.
# Parental leave:
A female employee is entitled to 50 calendar days maternity leave that include pre and post delivery with full salary. There is no paternity leave or leave for adoption.
# Sick leave:
The Oman`s legislation permits an employer to terminate an employment contract if the employee is unable to perform his/her duties because of a disability. Additionally, an employer with fifty or more employees to hire a person with special needs who is able to undertake work for which the employer has a vacancy.
An employee may be required to work for more hours than normal if the interest of work so dictates provided that the total original and extra work hours not exceed 12 (twelve) hours a day. The employer shall pay the employee overtime equal to his basic salary against the extra work hours plus at least 25% for day-time work and 50% for night work or grant the employee permission for the extra hours he did provided that the employee agree in writing to the extra work and the return. With regard to the work that takes place at ports, airports, on vessels, ships or aircrafts, the employer and the employee, may, after obtaining the approval of the Ministry, agree on payment of a fixed allowance for the employees in lieu of the overtime payments provided that an approval from the Ministry is obtained. However, the minister may add any other similar works.
# State minimum salary:
Oman’s minimum wage is 225 Omani rials per month ($592) plus an allowance of 100 rials per month ($263) for citizens; none for foreign workers. Oman’s minimum wage was last changed in July 2013.
# Employee dismissal:
The Oman’s Labour Law requires the party terminating the employment contract to provide the other party with a minimum thirty days notice or payment in lieu for those paid monthly and fifteen days notice or payment in lieu for those paid otherwise unless a longer period is agreed upon in the employment contract.
The Oman’s Labour Law permits an employer to terminate an employment contract without notice or end-of-service gratuity if an employee commits any of the following:
- assumes a false identity or forges documents to obtain employment;
- commits a mistake that causes the Employer to incur substantial financial losses;
- violates written health and safety regulations that are posted conspicuously in the workplace and the employer has previously warned the employee in writing;
- during any one year the employee is absent from work without a reasonable cause (i) for more than ten days and the employee has provided written notice to the employee after the fifth day of absence, or (ii) for more than seven consecutive days;
- the employee discloses confidential information regarding the employer;
- a final judgment is issued against the employee for;
- an offence that involves breach of honour or trust, or
- a felony committed in the workplace or during the course of work;
- the employee is intoxicated with drugs or alcohol during work hours; or
- the employee assaults (I) a manager, or (II) a co-worker at work;
- commits a grave breach of his obligations to perform his work as agree upon his employment contract.
An employee is permitted to resign after proving an employer with a minimum thirty day notice or payment in lieu of the notice for those paid on a monthly basis and fifteen days or payment in lieu for those paid otherwise unless a longer period is agreed upon in the employment contract.
The parties are entirely free to agree termination on any grounds they desire. Where the parties agree to terminate the employment, they are not required to obtain the courts’ or regulatory body’s approval before the termination is effective.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Oman by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.