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Bait Al Qanoon
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Practice Areas

Corporate & Commercial Law
Dispute Resolution
Dispute Resolution and Arbitration
Criminal Law
Employment Law

Frequently Asked Questions - Oman labour law

Please reach us at info@baitqanoon.com if you cannot find an answer to your question.

Yes. Hiring in Oman can only be done through a registered legal entity (company, establishment, or branch of a foreign company)


 Employers must register with the Ministry of Labour, obtain work permits for expatriate employees, register Omani nationals with the social insurance system, maintain employee records (personal data, contracts, payroll, attendance), and comply with health and safety regulations.


Employment contracts must clearly state the employer and employee details, job title and location, base salary and allowances, the contract duration (fixed or indefinite), notice period for termination, and an explicit commitment to comply with Omani laws and workplace customs. 


Yes. The contract must be in Arabic, in two copies (one for each party). A version in another language may be attached, but the Arabic version prevails in case of conflict. 


Yes. Probation may not exceed three months for monthly-paid employees and two months for others. 


Yes. Employers may request a police clearance certificate (No Criminal Record Certificate). 


Oman Labour Law prohibits discrimination or termination based on gender, origin, color, religion, belief, disability, or pregnancy.


  Oman allows:

  • Fixed-term contracts: up to five years, renewable.
  • Unlimited-term contracts: ongoing until terminated according to the law.
  • Project-based contracts: ending upon completion of the agreed work.

Fixed-term contracts may automatically convert into unlimited-term contracts if they exceed five years or continue without a written renewal. 


 Yes. Remote work is now recognized under Omani law. Employees may work from outside the workplace using technology tools. Employers must provide necessary systems (unless otherwise agreed), monitor performance fairly, and protect employee privacy. Specific details should be set out in the employment contract or its addenda.


Yes. Employers with 25 or more employees must prepare an annual Omanisation and training plan, set up performance appraisal systems, and develop retention strategies for Omani staff. Companies with 50 or more employees must also prepare written internal work rules and disciplinary policies approved by the Ministry.


Yes. Employers with 40 or more employees must hire a percentage of qualified persons with disabilities, with the percentage set by the Minister of Labour. 


Yes. Medical tests are mandatory for expatriate employees before a work permit is issued. For Omanis, there is no general requirement unless specified for certain roles or health and safety reasons.


8 hours per day / 40 hours per week.
During Ramadan: 6 hours per day / 30 hours per week.


  • Day overtime: base salary + 25%. 
  • Night overtime: base salary + 50%.
  • Rest day or public holiday: base salary + 100% plus one day’s wage.  


 Yes, for Omani employees, set by Ministerial Decision and reviewed periodically  


Wages must be paid in Omani Rials (or another legally recognized currency if agreed) and transferred through a licensed local bank under the Wage Protection System (WPS).  


Deductions are allowed only within legal limits (for alimony, government dues, or employer’s proven claims) and must not exceed 25% of monthly wages.  


Yes. The law requires equal pay and treatment when the nature and conditions of work are the same.  


 30 days of paid annual leave after six months of service.  


 Up to 182 days per year, with pay on a sliding scale: 

  • 100% for days 1–21 
  • 75% for days 22–35 
  • 50% for days 36–70 
  • 35% for days 71–182  


  • 98 days maternity leave. 
  • One hour daily for breastfeeding up to one year.
  • Option to take unpaid childcare leave for up to one year.  


  • Marriage: 3 days. 
  • Bereavement: 2–10 days depending on relation.
  • Hajj: 15 days, once during employment. 
  • Study exams: 15 days per year for Omanis.   


 Yes, if the employee consents in writing or upon termination of employment   


Termination & End of Service

 A contract ends in cases such as: 

  • Expiry of its term or completion of the work. 
  • Termination by either party in line with the law.
  • The employee’s inability to work or death. 
  • Absence due to illness for at least three months within a year after exhausting sick and annual leave.    


 For unlimited-term contracts, 30 days’ notice for monthly-paid employees and 15 days for others, unless a longer period is agreed.     


Immediate dismissal without notice or end-of-service benefit is allowed for serious misconduct, including: impersonation or fraud, major financial loss caused by the employee (reported within 30 days), repeated violation of safety rules, repeated absence (7 consecutive or 10 intermittent days with warning), disclosure of company secrets, criminal conviction for dishonesty, intoxication at work, assault, or gross breach of duties.  


 Yes. Expatriate employees are entitled to a gratuity equal to their basic salary for each year of service. Omani employees are covered by the social insurance scheme.  


Employer must obtain approval from the competent authority, provide justification and evidence, consider alternatives (reduced hours, pay cuts), and apply fair selection criteria for affected employees.  


 Yes. Dismissal is prohibited during maternity, sick leave, or annual leave, and union representatives are protected from dismissal for lawful union activity.  


Employers must notify the Ministry of Labour, obtain approval, give at least three months’ notice, and offer reemployment priority if suitable positions become available later.   


Dispute Resolution & Labour Relations

Through a complaint filed with the Ministry of Labour for amicable settlement. If unresolved within the prescribed period, the case is referred to the Labour Court   


Through collective bargaining first, then review by the Ministry’s dispute committee, and if unresolved, referral to the Labour Disputes Arbitration Committee for a final binding decision. 


Yes, strikes are allowed under strict conditions: union approval and at least three weeks’ prior notice. Strikes are prohibited in vital sectors like oil, ports, and airports. Employers may lock out operations to protect their interests, provided they follow notification rules.  


 Unions represent employees in negotiations, protect their interests, and are legally protected against retaliation for lawful activities. 


Non-compliance may result in fines, suspension of ministry services, or temporary closure of operations. In severe cases, criminal liability may apply. Early legal advice and compliance audits help mitigate these risks.  


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 Bait Al Qanoon has advised GFCL-EV, part of GLOBAL INOX Group, in relation to its advanced electric battery chemical project in Salalah Free Zone. The Project will help support and achieve Oman’s Vision 2040 goals of economic diversification and the development of sustainable industries and it will create direct and indirect employment opportunities for many Omanis in a new age industry.
BAQ lead by Senior Partner Paul Sheridan assisted by Mujtaba Ali Kazmi has represented GFCLOman in negotiating a sub-usufruct agreement with Salalah Free Zone and a project offer with InvestOMAN.
 

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