- 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.
Fixed-term and permanent employment contracts
Employment contracts can be for a fixed or unlimited period. If the parties to a fixed employment contract continue to carry out the contractual obligations following expiry of the contract, the contract is renewed automatically for an unlimited period with the same conditions.
Casual employment contracts
A part time contract must include the following:
- Determine the number and timing of work hours
- Determine the working days
- The hourly wage and the method of paying that wage.
The law allows collective bargaining. Collective bargaining is done between the employer and representatives of the union and the General Federation of the Sultanate of Oman’s Workers. If there are no trade unions, collective bargaining takes place between the employer and five representatives selected by the workers. Employer has no right to reject any representative. Employer is prohibited to take any action related to issue that is under discussion. To proceed with the collective bargaining, employer provides the relevant information and required data.
#Employment Termination and Severance Pay (Dismissal)
The worker may abandon the work before termination of the contract period and retain his full rights after giving notice to the employer of so doing in any of the following cases:
- If the employer or his representative has defrauded him in respect of the terms of employment at the time of entering into the contract of work.
- If the employer does not perform his substantial obligations towards the worker in accordance with the provisions of this law or the terms of the contract of work.
- If the employer or his representative commits and immoral act against the worker or any member of his family.
- If he is assaulted by the employer or his representative.
- If there is a grave danger which threatens the safety or health of the worker, provided that the employer was aware of the existence of such danger and did not implement the measures prescribed by the relevant authorities.
The employer may dismiss the worker without prior notice and without end-of-service gratuity in any of the following cases:
- If he assumes a false identity, or if he resorts to forgery to obtain the employment.
- If he commits a mistake which results in a heavy financial loss to the employer provided that the latter should notify the relevant directorate of the incident within three days from the date of his knowledge of its occurrence.
- If he in spite of being notified in writing does not comply with such instructions the compliance with which is necessary for the safety of workers or the workplace, provided that such instructions shall be written and hanged in a conspicuous place and the contravention of which is likely to cause a grievous damage to the work place or to the workers.
- If he absents himself from his work for more than ten days without reasonable cause during one year or for more than seven consecutive days provided that such dismissal shall be preceded by a written notice to him from the employer after his absence for five days in the first case.
- If he discloses any secrets relation to the establishment in which he works.
- If a final judgement is entered against him for an offence or felony for breach of honor or trust or for a felony committed in the work place or during the course of his work.
- If he is found during the working hours in a state of drunkenness or was under the influence of an intoxication drug or mental stimulus.
- If he commits an assault on the employer or the responsible manager or
- if he commits a grievous assault on any of his superiors in the course of the work, or because of it if he assaults one of his colleagues in the work place by hitting him and as a consequence thereof sickness or delay from the work for a period exceeding ten days ensues.
#It is prohibited to dismiss
The Labour Law provides for compensation for arbitrary dismissal of a minimum of three months of the employee’s last full monthly salary. In addition, an employer cannot terminate the employee’s services for health reasons before the employee has taken a period of sick leave to which they are entitled. Any agreement made to the contrary is null and void. The employer shall not dismiss a woman worker for her absence due to illness confirmed by a medical certificate which is attributable to the pregnancy or delivery and that she cannot resume her work, provided that the total period of such absence shall not exceed six months.
According to Omani Labour Law, any party wishing to terminate the employment agreement must give a 30-day notice. This means that the employee must remain on the job for a further 30 days upon being served their termination notice. If the employer does not want the employee to remain on the job for this period, he/she is obliged to pay the employee their Gross Wage for that period. The counting of notice period will start from the same working day of which the letter of termination was signed and received by the employee. If the letter of termination is issued whilst the employee is on leave or during a public holiday, the notice of termination shall not commence until the next day after the leave/public holiday. Any one of the parties may, after a notice of not less than seven days to the other party, terminate the contract during the probationary period, if it becomes clear that continuation in employment is not suitable.
On the termination of the relation of work of the workers who are not beneficiaries of thee Social Insurance Law the employer shall by the worker a post service gratuity in the amount of the wage of fifteen days for each year of service for the first three years, and the wage of one month for each of the following years. The worker shall be entitled to the gratuity for a fraction of the year proportionate to the period of his service and the last basic wage of the worker shall be considered the basis for the calculation of the gratuity. The continuous period of service, which commenced prior to the enforcement of this law shall be included in the period of service which is considered for determining the period for which of gratuity is payable. The said gratuity shall not be payable if the duration of service is less than one year.
#Employee Benefits and Contributions
Mandatory benefits required by law to be provided by an employer
The Labour Law prescribes certain entitlements that the employee is to receive, such as:
- The employer must provide medical coverage for their employees, either in the form of insurance or as a monetary allowance.
- The employer is also obliged to bear the visa costs and travel costs of the employees from their home country to the Sultanate of Oman.
- The employer is further obliged to provide repatriation costs of the employees to their home country upon the termination of their employment contract unless their sponsorship was transferred to another employer within the Sultanate of Oman. If the employer declines to do so, the relevant directorate shall repatriate the worker at the expense of the Government and revert to the employer for recovery of the amount paid.
- The employer, who practices work in such regions as may be specified by a decision of the Minister, is obliged to provide his workers with suitable means of transport, appropriate accommodation, meals and drinking water in places equipped for such purpose, and within easy reach of the workers.
- The employer shall give the worker, upon his request, at the end of the contract, an end of service certificate free of charge, wherein he shall state the date of the worker’s joining the service, date of leaving it, the type of work he was performing, and the wage and other remunerations and privileges, if any.
Non-mandatory benefits that are offered by an employer
Annual return ticket. There is no requirement under Oman Labour Law to provide an annual flight home, however this is customary market practice. The employer may use their discretion to extend this entitlement to the employee’s family if deemed appropriate. Benefits for Oman citizens working in state-owned companies include health insurance for the employee and his or her family, interest-free personal and housing loans, huge cash bonuses for some employees, free scholarships, free mobile phones, free medical checks, travel health insurance, furniture allowance and Ramadan and Eid allowances.
A worker shall not be placed on probation for a period exceeding three months if he receives his wage on a monthly basis nor shall such period exceed one month if he receives his wage otherwise. A worker shall not be placed on probation more than once with the same employer and the any probation period shall be included in the period of service if the worker has successfully completed it. In all cases the probationary period, if any, shall be specified in the contract of service.
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.
An employee may not be required to work for more than nine hours a day and to a maximum of 45 hours a week with at least half an hour breaks for taking food and rest. The maximum work hours during Ramadan shall be six hours a day or 30 hours a week for Muslim employees. A decision by the Ministry may determine the timing of the work hours. The working hours shall be separated by one or more intervals for taking food and rest, the total of which shall not be less than half an hour, taking into account that the continuous period of work shall not exceed six hours. The working hours shall be separated by one or more intervals for taking food and rest, the total of which shall not be less than half an hour, taking into account that the continuous period of work shall not exceed six hours.
An employee shall have a right to an annual leave with full salary, for a period of not less than thirty days. The employee shall have this leave considering the interest of the work. He shall not enjoy this annual leave before the lapse of at least six months from joining work. An employee shall have the right to a six-day emergency leave annually with full salary in emergency cases. A resolution by the Minister shall regulate the emergency leave for employees and the employee shall not waive the right in this leave. With the exception of the leaves of the juvenile workers, it is permissible to divide a leave in accordance with the requirements of the work. The employer may pursuant to the above paragraph postpone the annual leave of a worker for one succeeding year. The worker shall go on leave at least for a period of two weeks once every two years. The employer shall pay to the worker the basic wage for the days of the annual leave which the worker has not been availed if the worker has agreed to that in writing. The worker shall be entitled to the basic wage for the balance of his annual leave if he abandons the work before exhausting such leave.
Subject to the provisions of the social Insurance Law, the worker whose illness is certified shall be entitled to a sick leave the total of which shall not exceed ten weeks during one year irrespective of whether it is divided or continuous and it shall be granted as follows:
- The first and second weeks with Gross Wage
- The third and the fourth weeks with three quarters of the Gross Wage
- The fifth and the sixth weeks with a half of the Gross Wage
- The seventh week and up to the tenth week with a quarter of the Gross Wage.
A female employee shall have the right to a special fifty-day maternity leave covering the periods before and after delivery with full salary for not more than three times during her service with the employer.
No provisions could be located in the law regarding paternity leave.
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.