Sultanate of Oman

Officially referred to as the Sultanate of Oman, this Middle eastern country is located on the Persian Gulf.

The formal language is Arabic. From mountainous valleys, to villages, to sea sides, to downtowns, you will find nothing but people who are genuine and welcoming. In terms of economy, recent advances have been made to diversify from the Oil and Gas sector to Tourism. Due to which, Oman is one of the gulf countries with massive growth potential.

Employment Contracts

Employment contracts should be written in Arabic. If the contract is in another language, an Arabic translation of the employment contract should be provided to both the employer and employee. If the employee is unable to understand the contract or is illiterate, then a certificate is required from the labour office. A valid work permit and visa is required before employment.
The salaries paid are supposed to be in OMR and should be paid according to the contract.
The employment contract should include the following:
Names and address of both the parties, nationality of the employee, date of joining, contract type, duration of the contract, job description, qualifications of the employee, salary breakdown, payment method and its frequency, working days and no. of hours, leaves and benefits, social insurance contributions and deductions (Omani citizens only), non-compete and non-disclosure clauses, adherence to guidelines and policies, end of service benefits, compensation of early termination, and any other rules and regulations which are instructed by the Ministry.

There are 2 types of contracts.

imgFull time – Indefinite

No. of hours: fixed as per the contract

img Part time – Definite

Usually for 6 months and 6 hours per day. If the contract continues after the definite period, it would be renewed as an indefinite full-time contract.

Working Hours

The working hours are 9 hours per day, 45 hours per week with a 2-day weekend.

Overtime hours are also welcomed at a maximum of 3 hours per day. The overtime rate during the daytime is 25% of the employee’s hourly rate, whereas the hourly rate during the evenings is 50%. Additionally, a full 100% increase will be given for work during the weekends and official holidays. The working hours during the Holy month of Ramadan are different for Muslim employees where the number of hours per week is reduced to 30 hours per week and 6 hours per day.

Leaves

There are several types of leaves an employee can claim in Oman.

imgSick leave

The employee is entitled to receive a maximum of 10 weeks of medically certified sick leaves per year. Any extra sick leaves will be deducted from the employee’s vacation and emergency/personal days. The sick leave payments depend on the contract and differs from business to business.

img Maternity/Paternity leave

Female staff are entitled to 50 days of maternity paid leave that covers the periods pre and post delivery for a maximum of 3 deliveries throughout their employment per employer. Some companies also grant 3 to 7 days of paternity paid leaves for the male staff as well.

imgVacation leave

After 6 months of continuous service, the employee is granted an annual leave of 30 days and a maximum of 6 emergency paid leaves per year.

img Public Holidays

  • New Year’s Day
  • Islamic New Year
  • Lailat al Miraj
  • Milad Un Nabi (Prophet Muhammad’s pbuh birthday)
  • Eid al Fitr
  • Eid al Adha
  • Renaissance Day
  • National Day
  • Arafat Day

Compensation

The minimum wage in Oman is determined by the Ministry of Labour and the Central Bank of Oman. Every year the minimum wage is determined based on several factors such as the literacy rate of the employee. Moreover, benefits are determined by the employer and bonuses shouldn’t be less than OMR 100. Consequently, a minimum annual raise of 3% per year on Omani employee salaries is an obligation for the employer. Nevertheless, the State provides free healthcare to Omani citizens.

Employment, Termination and EOSB

The employment contract expires when the definite period ends, when the designated contract work is finished, the employee becomes disabled for more than 10 weeks or dies.
Both employer and employee can initiate the termination process, however, in full time contracts, a 30-day written notice is required, whereas a 15-day notice is required in a part time contract. Termination during the probation period is also possible where a 7-day notice is required. However, if a contract is dismissed before it ends, the party who terminates the contract will be obliged to pay compensation to the other party equal to the salary of the notice period.
Employers can terminate employees without notice in limited circumstances, however, can’t dismiss them during employees’ vacation period, sick leaves or during maternity leaves.
The gratuity is calculated as follows: Length of employment: 1 to 3 years. Gratuity: 15 days basic salary for each year of service,
Length of employment: 3 years or more Gratuity: 30 days (one month) basic salary for each year of service.