Oman Employment Law 2026: Rights and Obligations for Workers
Oman's labour market employs hundreds of thousands of expatriate and Omani workers across the private sector. Whether you are signing your first contract in the Sultanate or have worked here for years, understanding the Oman Labour Law (Royal Decree 35/2003 and its amendments) is essential. This guide covers every critical aspect of employment law in Oman as of 2026 — from contract types to termination, from leave entitlements to Omanisation.
The Legal Foundation: Royal Decree 35/2003
The Oman Labour Law was enacted by Royal Decree 35/2003 and has undergone several amendments, most recently through Royal Decree 113/2011 and subsequent ministerial decisions. The law applies to all employees in the private sector, both Omani and expatriate, with some exceptions for domestic workers, agricultural workers, and government employees (who are governed by the Civil Service Law).
The Ministry of Labour is the primary regulatory body overseeing employment relationships. It operates labour inspection offices across the Sultanate, handles complaints, and enforces compliance. The ministry also oversees the Omanisation programme and issues work permits for expatriate employees.
Types of Employment Contracts
Oman Labour Law recognises two primary types of employment contracts, each with different implications for both employer and employee.
Fixed-Term Contracts
A contract with a defined start and end date. Common for expatriate employees. Under Oman law, fixed-term contracts automatically convert to indefinite contracts if the employee continues working after the expiry date without a new contract being signed. If a fixed-term contract is renewed more than twice, it is also deemed indefinite. The maximum duration for a fixed-term contract is typically one year for expatriates, though longer terms can be negotiated. Either party can terminate early by paying compensation equal to the remaining contract period, unless the contract specifies different terms.
Indefinite Contracts
A contract without a specified end date. More common for Omani nationals. Termination requires valid cause and proper notice (minimum 30 days). Indefinite contracts provide greater job security for the employee, as the employer must demonstrate a legitimate reason for termination. These contracts are the default when a fixed-term contract converts after multiple renewals.
All employment contracts in Oman must be in writing, in Arabic (with an optional English translation), and must include: the employee's name and nationality, job title and description, salary and benefits, working hours, contract duration, and probation terms. Contracts must be registered with the Ministry of Labour.
Probation Period
Under Article 17 of the Oman Labour Law, the maximum probation period is three months. It cannot be extended or renewed. During probation, either party can terminate the contract with just seven days' written notice. No compensation is owed for termination during probation, but the employee is entitled to a return ticket to their home country if they are an expatriate.
Crucially, an employee cannot be placed on probation more than once with the same employer. If the employee passes the probation period, the service start date is calculated from the first day of employment (including the probation period) for all purposes, including gratuity calculations.
Working Hours and Overtime
The standard working week in Oman is 45 hours, spread across a maximum of six days. The daily maximum is nine hours, with at least one rest day per week (typically Friday). During the holy month of Ramadan, working hours for Muslim employees are reduced to six hours per day (30 hours per week).
Overtime is compensated at 125% of the regular hourly rate for daytime overtime and a higher rate for night and holiday work. The employer cannot force an employee to work more than 12 hours in any 24-hour period (including overtime). Certain categories of workers, such as senior managers and supervisors, may be exempt from overtime provisions.
In the summer months (June to August), outdoor work is prohibited between 12:30 PM and 3:30 PM for certain industries (particularly construction and manual labour), a regulation enforced by the Ministry of Labour to prevent heat-related illness.
Leave Entitlements
Oman Labour Law provides generous leave entitlements compared to many countries in the region.
Annual Leave
30 calendar days per year after completing 6 months of continuous service. Employees are also entitled to a return flight ticket for themselves once per year (for expatriates). Annual leave can be accumulated for up to two years, after which the employer must either grant the leave or pay it in cash. Public holidays that fall within the annual leave period are not counted as leave days.
Sick Leave
Employees are entitled to sick leave upon presenting a medical certificate from an approved medical facility. The entitlement is: first 2 weeks at full pay, next 4 weeks at 75% pay, and the following 4 weeks unpaid. If the illness extends beyond 10 weeks in a single year, the employer may terminate the contract with full end-of-service benefits.
Maternity Leave
Female employees are entitled to 50 days of maternity leave at full pay, which can be taken before and after delivery. This period cannot be deducted from annual leave or sick leave. The employer cannot terminate a female employee during maternity leave or because of pregnancy. After returning to work, the mother is entitled to one hour of nursing time per day for one year.
Other Leave Types
Bereavement leave (3 days for close family), marriage leave (3 days, once during employment), Hajj leave (15 days, once during employment for Muslim employees who have completed one year of service), and special leave for Oman National Day and other public holidays (typically 8-10 days per year).
Termination of Employment
Termination under Oman Labour Law follows strict rules depending on the contract type and the reason for termination. Wrongful termination can result in significant compensation awards.
For fixed-term contracts, termination before expiry by the employer without valid cause entitles the employee to compensation for the remainder of the contract or three months' salary, whichever is greater. For indefinite contracts, the employer must provide at least 30 days' written notice and demonstrate a valid reason.
Valid grounds for termination by the employer include: poor performance (after documented warnings), misconduct, absence without leave for more than 10 continuous days, violation of safety rules, or disclosure of company secrets. The employer must follow a progressive disciplinary process — verbal warning, written warning, then termination — except in cases of gross misconduct.
The employee can also terminate the contract with notice if the employer violates the contract terms, fails to pay wages for two consecutive months, assaults the employee, or creates unsafe working conditions. In such cases, the termination is deemed an employer fault, and the employee retains full end-of-service benefits.
Omanisation Requirements
Omanisation is the government's nationalisation programme requiring private sector companies to employ a minimum percentage of Omani nationals. The programme has been in place since the 1990s and has been significantly expanded in recent years.
Omanisation percentages vary by sector: banking (90%), insurance (60%), tourism and hospitality (40-50%), retail (20-30%), and construction (15-25%). Companies that fail to meet their quotas face penalties including suspension of work permits for new expatriate employees, fines, and exclusion from government contracts.
For employees, Omanisation means that Omani nationals in the private sector have additional protections. An employer cannot terminate an Omani employee to hire an expatriate at a lower cost. Omani employees also benefit from minimum wage provisions (OMR 325 per month for the private sector) that do not apply to expatriates.
Filing a Labour Complaint
If your employer violates the Labour Law, you have the right to file a complaint with the Ministry of Labour. The process begins by visiting or calling the nearest labour office. The ministry will attempt mediation first — many disputes are resolved at this stage.
If mediation fails, the case is referred to the labour court. Proceedings are conducted in Arabic, and while you can represent yourself, legal representation is advisable for complex cases. The court process typically takes 2-6 months for a first-instance decision.
Important: filing a labour complaint does not affect your visa status. Your employer cannot cancel your visa or deport you while a labour dispute is pending. The ministry provides worker protection during the dispute resolution process.
Scan Your Employment Contract
Use our free Oman Employment Contract Scanner to check your contract against Oman Labour Law.
Scan Your Contract