Oman Labour Law 2025: Key Rights and Obligations for Employers

Under Oman Labour Law, the standard working day is 9 hours and the standard working week is 45 hours. During the holy month of Ramadan, working hours for Muslim employees must be reduced to 6 hours per day or 30 hours per week.

Overtime work must be compensated at a minimum of 125% of the employee's normal hourly rate for weekday overtime, and 150% for work performed on the weekly rest day. Work on public holidays must be compensated at 150% plus a substitute day off.

Employees cannot be required to work more than 12 hours in a single day, including overtime. Employers who regularly exceed this limit face complaints to the Ministry of Manpower and potential legal action.

Every employee who has completed one year of continuous service is entitled to 30 days of paid annual leave per year. Employees with less than one year of service earn leave on a pro-rata basis.

Oman has a fixed list of public holidays each year, typically around 13 days. Employees required to work on a public holiday must receive the day's pay plus an additional day's pay, or a substitute day off in lieu.

Sick leave entitlements are separate from annual leave: employees are entitled to paid sick leave of up to 10 weeks per year (weeks 1–2 at full pay, weeks 3–4 at 75% pay, weeks 5–10 at 50% pay), provided the illness is certified by an approved medical practitioner.

Employees on unlimited-term contracts who complete one year of service are entitled to end-of-service gratuity calculated at 15 days of basic salary per year for the first three years, and one month's basic salary per year for each subsequent year.

Employers must give notice before terminating an employee: one month's notice for employees with less than 5 years of service, and two months for those with more than 5 years. Termination without notice requires payment of the notice period salary in lieu.

Dismissal for cause (gross misconduct) does not require notice or gratuity payment, but the cause must be documented and fall within the specific grounds listed in the Labour Law. Wrongful dismissal claims are common and costly.

Omanisation is the government's policy of increasing the proportion of Omani nationals in private-sector employment. Each industry sector has a minimum Omanisation percentage, enforced by the Ministry of Manpower. Companies that fall below their required percentage face restrictions on new work permit approvals.

The required percentages vary significantly by sector — from 15% in construction to 35% in banking and finance. Companies should check their sector's current requirement with the Ministry, as rates are reviewed periodically.

SmartPRO's workforce intelligence module tracks your Omanisation ratio in real time, flags when you are approaching the minimum threshold, and helps you plan hiring to maintain compliance.