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Written Agreements

Oman's Labor Code requires employment contracts to be concluded in writing, written in the Arabic language, and drawn up in 2 copies. If the contract is drafted in a language other than Arabic, at least 1 copy in Arabic must be annexed to the agreement and approved by the 2 parties to the contract. If the contract is not made in writing, it is considered to be made for indefinite term. The contract must include the following information:

• Name of the employer or establishment and address of the workplace
• Name, date of birth, qualifications, designation, address, and nationality of the employee, as well as the nature of their job
• Nature and type of work and duration of the contract, if applicable
• Basic salary and allowances and other remuneration to which the employee is entitled
• The notice period for termination of employment
• Probationary period, if any
• Commitment to respect religions and religious beliefs, the laws of the Sultanate of Oman, its customs and traditions, and not to engage in activities that harm the security of the country.

If any of the parties to the contract cannot read or write or does not understand the contract's language, it must be authenticated by the competent authority according to the law.

Employers can include a non-compete clause in an employment contract if the employee's work involves access to knowledge of work secrets or knowledge of the employer's clients. Such a clause must specify the location, type of work, and period of restriction, provided the place does not lie beyond the geographical area in which the employer carries out their activity, and the specified period does not exceed 2 years. The employer may not adhere to the agreement if they terminate the contract unjustly. Employers also have the right to demand compensation from the employee if they violate the clause.

Oral Agreements

Oman's Labor Code acknowledges the existence of employment contracts that are not in writing and states that if there is no written contract of work, an employee may establish their rights by all means of proof. However, the Labor Code offers no further guidance on the use of oral employment contracts. If a contract is not in writing, it is considered to be made for indefinite term.

Implied Agreements

Oman's Labor Code contains no provisions or guidance on implied contracts. The industry's best practice is to be cautious of implied contracts by frequently utilizing or adapting written agreements. If a contract is not made in writing, it is considered to be concluded for indefinite term.

Oman's labor law stipulates that the standard workweek is 40 hours weekly or 8 hours daily, not including an hour per day for rest and eating. The period of continuous work must not be more than 6 hours. The maximum working hours for Muslim employees during Ramadan are 30 hours per week and 6 hours per day. Working hours for minors cannot exceed 6 hours per day.

Employees working more than the standard working hours are eligible for overtime. The total working hours in a day, including overtime, cannot exceed 12 hours.

Hijri New Year - Date subject to change every year; Prophet’s Birthday - Date subject to change every year; Isra wal Miaraj Night - Date subject to change every year; Renaissance Day - July 23; National Day - November 18-19; Eid-al-Fitr (4 days) - Dates subject to change every year; Eid-al-Adha (4 days) - Dates subject to change every year.

Per Oman's Labor Code, an employee cannot be placed on probation for a period exceeding 3 months if they receive their monthly wages. The probationary period cannot exceed 2 months if the employee receives their wage in any other manner. An employee cannot be placed on probation more than once with the same employer. Also, any probationary period must be included in the service period if the employee has completed it. In all cases, any probationary period must be specified in the employment contract. After a notice of not less than 7 days to the other party, any one of the parties may terminate the contract during the probationary period if it becomes clear that continuation of employment is not suitable.

Notice Period

Per Oman's Labor Code, if an employment contract is for an indefinite duration, either of the parties may terminate it after giving written notice of at least 30 days to the other party. If the contract is terminated without notice, the party who terminates the contract must pay the other party compensation equal to the gross wage for the notice period or the remaining part thereof. A notice of termination issued by the employer to a worker on leave or public holiday will not begin until the day following the end of the leave or holiday. Employers must grant the employees on notice period, 10 hours paid off time per week to search for a new job.

If the contract is for a limited duration, and the parties have continued the contract's execution past its duration, the agreement shall be deemed to have been renewed on the same terms for an indefinite period. If the contract is not renewed, a minimum notice of 30 days is required.

During probation, contracts can be terminated by giving a notice of 7 days.

Severance Benefits

Per Oman's Labor Code, employees who are not beneficiaries of social insurance end of service benefits are entitled to an end of service gratuity depending on their employment length. The amount of severance pay is equal to a month's wages for each year of service. The last basic wage of the employee is used for calculation. This end of service gratuity does not apply if the employee is entitled to benefits under the Social Protection Law.

Minimum Wage

The Council of Ministers sets Oman's minimum wage according to economic circumstances. The minimum wage was last set in 2013 to OMR 325 (Omani rials) per month.

According to Oman's Labor Law, employees appointed for monthly wages must be paid at least once a month. Part-time employees and other employees whose contract duration exceeds 2 weeks must be paid once a week. In all cases, the wage must be paid within 3 days from the end of the period for which it is due. It is not allowed for an employer to transfer an employee with a monthly wage to the category of daily employees or to the category of employees appointed for a weekly, piece-rate, or hourly wage except with the written consent of the employee.

Overtime, Holiday & Vacation Pay

Employees working more than the standard working hours are eligible for overtime. The total working hours in a day cannot exceed 12 hours, including overtime. An employee may be required to work with their consent for more hours than the standard hours if work circumstances require it. The employer must pay the employee overtime equal to 125% of their regular salary for daytime overtime work and 150% of their regular salary for nighttime overtime work.

Employees may be asked to work on an official holiday if the circumstances of the work require it. In such a case, the employee is entitled to receive 125% of their regular daily wage or to have an additional paid day off.

In case of an emergency, employees can be asked by their employer to work overtime without their consent. In these cases, the employees are entitled to additional pay - 50% for daytime working hours, 75% for nighttime working hours, 200% for work done on weekly rest days or official holidays. Employees are to receive their regular wages while on annual leave.

Visas

The following categories of visas are available in Oman:

• Tourist visas are issued for tourism and are valid for 6 months. They allow for stays of up to 1 month.
• Transit visas are issued to foreign nationals traveling to another destination via Oman. They are valid for 72 hours and allow entry into Oman.
• Multiple-visit trip visas are issued to foreign nationals who wish to enter Oman multiple times. They are valid for at least 6 months but not more than 1 year and allow for a stay of 3 weeks per visit.
• Official visit visas are issued to foreign nationals who visit Oman for government business. They are valid for up to 6 months and allow a 3-month stay.
• Family residence visas are issued to foreign spouses or children under 21. They allow for a stay of up to 2 years.
• Relative/Friend visit visas are issued to foreign relatives or friends of an Omani national and are valid for use within 6 months of issuance. They allow for a 3-month stay.
• Student visas are issued to foreign nationals who wish to study in Oman. They allow for a stay of up to 2 years from the entry date.
• Employment visas are issued to foreign nationals 21 years or older who are coming to Oman for employment. They are valid for a 3-month stay, extension, and multiple entries.
• Employment contracting visas are issued to a foreigner whose work requires going through some government entity's preliminary tests. They are valid for use within 2 months from the issuance date and allow 1 month's stay.
• Investor visas are issued to foreign nationals who intend to invest their funds in Oman. They can be used within 6 months of issuance and allow multiple entries within 2 years.

Work Permits

Foreign nationals who wish to work in Oman must obtain a work permit and a work visa from the Ministry of Manpower. Work visas are valid for 2 years and are issued as multi-entry visas. The following requirements must be met to be eligible for a work visa:

• The visa must be issued at the request of the employer.
• The employee must be over 21 years of age and under 60 years of age.
• The employee's occupation must be the same as that mentioned in the work permit.

The following documents must be submitted to obtain a work visa:

• 2 photographs
• Copy of passport, valid for at least 6 months
• Copy of labor permit
• Copy of medical certificate
• Copy of approval from the Ministry of Manpower for conducting the job in Oman.

Beginning September 1, 2024, Oman has suspended the issuance of work visas for certain private-sector professions for 6 months.