Oman’s new Labour Law establishes the legal framework governing employment relationships in the private sector. It regulates employment contracts, wages, working hours, overtime, weekly rest, annual and sick leave, disciplinary procedures, resignation, termination, unfair dismissal, and end-of-service entitlements.

The law seeks to achieve a fair balance between protecting employees and preserving an employer’s right to organise and manage the business. Employees are entitled to minimum statutory protections that generally cannot be reduced by contract, while employers retain the authority to supervise performance, issue lawful instructions, and take disciplinary action in accordance with proper procedures.

Understanding the new Oman Labour Law is essential for both employees and employers because many employment disputes arise not only from the substantive issue itself, but also from incomplete contracts, poor record-keeping, unclear internal policies, or failure to follow the required legal process.

Who Is Covered by Oman’s Labour Law?

Oman’s Labour Law generally applies to employers and employees working in the private sector in the Sultanate of Oman, unless a special law or regulatory framework applies to the particular employment relationship.

The law may apply to:

• Omani and non-Omani employees.
• Fixed-term and indefinite-term employment contracts.
• Full-time, temporary, and part-time employment.
• Individual employers, companies, establishments, and private institutions.

An employment relationship exists where a person performs work for an employer under the employer’s management and supervision in return for remuneration.

The legal classification of the relationship depends on its actual nature, not merely on the title used in the agreement. Calling a worker an “independent contractor” does not necessarily prevent the relationship from being treated as employment when the employer exercises substantial supervision and control.

Key Employee Rights Under Oman’s Labour Law

The Right to a Written Employment Contract

A written employment contract is one of the most important protections for both parties. It should clearly identify:

• The employer and employee.
• The employee’s job title and duties.
• The workplace.
• The date employment begins.
• The duration of the contract.
• The basic salary and allowances.
• Working hours.
• The probation period.
• Leave entitlements.
• The notice period.
• Any additional contractual benefits.

An employee should retain a signed copy of the contract, offer letter, job description, salary records, and any subsequent amendments.

Where the contract is written in more than one language, the parties should ensure that the provisions are consistent and that the legally recognised version accurately reflects their agreement.

The Right to Receive Wages on Time

An employee is entitled to receive the agreed salary on the due date.

The employee’s remuneration may include the basic salary, fixed allowances, commissions, incentives, or other benefits, depending on the employment contract and the nature of the position.

Employers should maintain accurate payroll records and use traceable payment methods. Employees should retain:

• Bank statements.
• Salary transfer records.
• Payslips.
• Payroll correspondence.
• Written requests concerning unpaid wages.

If employment ends, the employer should calculate and settle the employee’s outstanding financial entitlements, including unpaid wages, accrued leave, notice pay, and any end-of-service entitlement that may be due.

Working Hours in Oman

The ordinary working-hours limit is generally eight actual hours per day and forty hours per week, subject to statutory exceptions applying to particular sectors, positions, or working arrangements.

Rest and meal periods are generally not counted as actual working hours.

During the month of Ramadan, reduced working hours apply to Muslim employees in accordance with the law.

Employers should keep reliable attendance and working-time records. These records may become important in disputes relating to overtime, absence, lateness, or salary deductions.

Overtime Rights

Where an employee works beyond the ordinary working hours, the employee may be entitled to additional compensation.

The amount payable may depend on whether the overtime was performed:

• During daytime hours.
• During nighttime hours.
• On a weekly rest day.
• On an official public holiday.

Employees claiming overtime should preserve evidence such as attendance records, electronic access logs, work schedules, emails, messages, or written instructions requiring them to work beyond normal hours.

Employers should adopt a clear overtime-approval policy and should not rely solely on informal arrangements.

Weekly Rest

Employees are entitled to paid weekly rest in accordance with the minimum period prescribed by law.

The employer may organise weekly rest days according to the operational requirements of the business, but may not deprive the employee of the minimum statutory entitlement.

Where an employee is required to work during a weekly rest day, the employee may be entitled to substitute rest or additional payment according to the applicable rules.

Annual Leave

An employee is generally entitled to paid annual leave of not less than thirty days, subject to the conditions governing eligibility and the organisation of leave.

The employer may determine the timing of annual leave in accordance with operational requirements. However, the employer should not permanently deprive an employee of the statutory entitlement.

When employment ends, the employee may be entitled to payment for accrued but unused leave, depending on the period of service and the available employment records.

Annual leave arrangements should be documented through written requests and approvals.

Sick Leave

An employee may be entitled to sick leave where the illness is supported by an approved medical report.

The level of salary payable during sick leave may vary according to the length and stage of the leave period.

The employee should notify the employer promptly and provide the required medical certificate. Unauthorised absence without notification or medical evidence may expose the employee to disciplinary action.

Employers should apply sick-leave policies consistently and should avoid treating genuine illness as misconduct without examining the medical evidence.

Maternity and Employment Rights of Women

Oman’s Labour Law provides protections relating to pregnancy, maternity, childbirth, breastfeeding, and childcare.

These protections may include:

• Paid maternity leave.
• Protection against dismissal based on pregnancy or childbirth.
• Rights connected with breastfeeding.
• Other childcare-related entitlements provided by law.

An employer should not use pregnancy, maternity leave, or family responsibilities as a discriminatory reason for terminating employment or reducing an employee’s contractual rights.

Protection of Personal Documents and Passports

An employer should not retain an employee’s passport or personal documents without the employee’s clear written consent.

Where a passport is retained without valid consent, the employee may request its return and may submit a complaint to the competent authority.

Employees should avoid signing broad or unclear declarations allowing indefinite retention of their documents.

Protection Against Discrimination

Employment decisions should not be based on unlawful discrimination.

Discriminatory treatment may arise in recruitment, salary, promotion, training, disciplinary action, or termination. The legality of the employer’s decision will depend on its genuine reason, the supporting evidence, and whether employees in comparable circumstances were treated consistently.

Protection Against Unfair Dismissal

Not every termination of employment amounts to unfair dismissal. An employer may terminate an employment relationship where there is a genuine and lawful reason and the required procedure has been followed.

Dismissal may, however, be considered unfair where it is based on:

• Discrimination.
• Retaliation for submitting a lawful complaint.
• Pregnancy or childbirth.
• An unproven allegation.
• A fabricated performance issue.
• An employee’s demand for statutory rights.
• A serious procedural failure.

Where unfair dismissal is established, the employee may be entitled to compensation in addition to other amounts, such as unpaid wages, notice pay, unused leave, and end-of-service benefits.

Employees should act promptly after dismissal because labour claims may be subject to strict procedural deadlines.

Notice of Termination

Where notice is legally or contractually required, the party terminating the employment relationship must comply with the applicable notice period.

A failure to provide the required notice may result in an obligation to pay compensation in lieu of notice.

The notice should be:

• Clear.
• Written.
• Dated.
• Properly delivered.
• Consistent with the employment contract and the law.

A termination notice should also identify the effective termination date and, where appropriate, the reason for termination.

End-of-Service Benefits

The calculation of an employee’s end-of-service entitlement may depend on:

• The date employment began.
• The employee’s total period of service.
• The final basic salary.
• The reason employment ended.
• The terms of the employment contract.
• Whether the employee falls within the applicable social protection or savings framework.

A single calculation method should not be applied to all employees without reviewing the individual legal position.

Resignation, expiry of a fixed-term contract, dismissal for misconduct, redundancy, and ordinary termination may each produce different legal consequences.

The Right to an Employment Certificate

When employment ends, an employee may request an employment certificate stating basic professional information, including:

• The dates of employment.
• The employee’s position.
• The nature of the work.
• The salary, where applicable.

The certificate should be accurate and should not contain false, misleading, or unnecessarily damaging statements.

Key Employer Rights Under Oman’s Labour Law

The Right to Organise and Manage Work

An employer has the right to organise the workplace and direct the business, provided that this authority is exercised lawfully.

The employer may:

• Determine working schedules.
• Assign duties.
• Organise shifts.
• Introduce performance standards.
• Regulate annual leave.
• Issue health and safety instructions.
• Protect company property.
• Establish internal employment policies.

These powers must remain consistent with the employment contract, the Labour Law, and any approved internal regulations.

The Right to Evaluate Performance

Employers may assess employee performance and address genuine shortcomings.

Performance concerns may relate to:

• Failure to perform assigned duties.
• Repeated lateness.
• Unauthorised absence.
• Negligence.
• Poor work quality.
• Failure to meet reasonable targets.
• Breach of lawful instructions.

Performance management should be objective and properly documented. Employers should provide clear expectations, identify the alleged deficiency, and give the employee a reasonable opportunity to respond or improve where appropriate.

The Right to Conduct a Disciplinary Investigation

Where an employee is suspected of misconduct, the employer may conduct an internal investigation.

A fair investigation should ordinarily include:

• Informing the employee of the allegation.
• Presenting the relevant facts.
• Allowing the employee to respond.
• Reviewing available evidence.
• Recording the investigation.
• Imposing a proportionate sanction.

An employer should avoid deciding the outcome before hearing the employee’s explanation.

The Right to Impose Disciplinary Sanctions

Employers may impose disciplinary measures where an employee has breached workplace rules or contractual obligations.

The sanction should be proportionate to the seriousness of the conduct and consistent with the law and the employer’s approved disciplinary framework.

Possible measures may include a warning, financial sanction where legally permitted, suspension, or dismissal in serious cases.

Repeated punishment for the same violation, arbitrary deductions, or sanctions unsupported by evidence may be challenged.

Dismissal Without Notice in Serious Cases

Oman’s Labour Law permits dismissal without notice in limited cases involving serious misconduct.

Such cases may include circumstances where an employee:

• Uses forged documents or assumes a false identity.
• Causes serious financial loss through deliberate conduct.
• Commits a serious safety violation.
• Repeatedly remains absent without lawful justification.
• Discloses confidential business information.
• Commits a serious breach of trust.
• Assaults the employer, a manager, or another person in connection with work.

Because dismissal without notice is an exceptional measure, the employer should preserve strong evidence and demonstrate compliance with the required process.

Protection of Confidential Information

Employers have the right to protect confidential information, including:

• Trade secrets.
• Customer databases.
• Pricing information.
• Financial records.
• Business plans.
• Internal systems.
• Contracts.
• Technical information.

Employees may be required to comply with confidentiality obligations during and after employment.

A non-compete clause may be enforceable in certain circumstances, provided that it is reasonable in duration, geographical scope, and the type of activity restricted.

Managing Annual Leave

An employer may organise annual leave to ensure business continuity.

The employer may consider staffing requirements, peak operating periods, and the need to maintain essential services. However, leave management should not be used to eliminate or indefinitely postpone an employee’s statutory entitlement.

Terminating Employment for a Lawful Reason

Employment may be terminated for a lawful reason, such as:

• Expiry of a fixed-term contract.
• Failure to pass a valid probation period.
• Documented poor performance.
• Serious misconduct.
• Repeated unauthorised absence.
• Medical incapacity established in accordance with the law.
• Closure of the business.
• Economic restructuring.
• Elimination of the employee’s position.

The existence of a genuine reason does not always excuse failure to follow the correct procedure. Notice, investigation, documentation, consultation, or other requirements may still apply.

Employee Obligations

Employees are generally required to:

• Perform the agreed work carefully and professionally.
• Comply with lawful instructions.
• Observe working hours.
• Protect company property.
• Respect workplace safety rules.
• Preserve confidential information.
• Avoid unauthorised absence.
• Refrain from competing unlawfully with the employer.
• Avoid misuse of their position or company systems.
• Cooperate with legitimate workplace investigations.

A serious or repeated breach of these obligations may justify disciplinary action.

Employer Obligations

Employers are generally required to:

• Pay wages on time.
• Provide a safe working environment.
• Honour the employment contract.
• Grant statutory leave and weekly rest.
• Pay lawful overtime.
• Maintain employment and payroll records.
• Protect employee information.
• Avoid unlawful discrimination.
• Investigate serious allegations properly.
• Refrain from retaining passports without valid consent.
• Calculate and settle final entitlements when employment ends.

Employers should also maintain clear internal rules and ensure that managers apply them consistently.

Probation Period

An employment contract may include a probation period subject to the legal limits and conditions.

The probation clause should be written clearly in the employment contract. During probation, either party may be able to terminate the relationship by giving the required notice.

An employer should not repeatedly place the same employee on probation for the same position as a means of avoiding permanent employment rights.

Resignation in Oman

An employee may resign by providing written notice in accordance with the contract and the Labour Law.

The resignation should clearly state:

• The date of submission.
• The intended final working day.
• Compliance with the notice period.
• Any request concerning outstanding entitlements.

An employee should retain proof that the resignation was delivered.

Where the employee leaves without serving the required notice and no legal exception applies, compensation in lieu of notice may become payable.

How to File a Labour Complaint in Oman

Before filing a complaint, the employee or employer should organise all relevant evidence.

Important documents may include the employment contract, offer letter, job description, payslips, bank statements, attendance records, overtime schedules, warnings, investigation records, performance assessments, medical reports, leave requests, resignation letter, termination notice, emails, telephone messages, and any document supporting the alleged breach.

A labour complaint may first be submitted to the competent department of the Ministry of Labour for attempted settlement.

If an amicable resolution is not achieved, the dispute may be referred to the competent Omani court in accordance with the applicable procedure.

The claim should clearly identify:

• The parties.
• The employment period.
• The salary.
• The relevant events.
• The alleged legal violation.
• The amounts or remedies requested.
• The supporting evidence.

Common Employment Disputes in Oman

Employment disputes frequently concern:

• Delayed or unpaid salaries.
• Overtime claims.
• Unused annual leave.
• Unlawful salary deductions.
• Unfair dismissal.
• Termination without notice.
• Resignation disputes.
• End-of-service calculations.
• Unauthorised absence.
• Poor performance allegations.
• Retention of passports.
• Non-compete clauses.
• Workplace injuries.
• Discrimination.
• Failure to issue an employment certificate.

The outcome of each case depends on the contract, documents, conduct of the parties, and legal procedure followed.

Frequently Asked Questions

How many hours may an employee work in Oman?

The ordinary limit is generally eight actual hours per day and forty hours per week, subject to statutory exceptions.

How much annual leave is an employee entitled to?

An employee is generally entitled to at least thirty days of paid annual leave, subject to the legal conditions governing eligibility and scheduling.

Can an employer keep an employee’s passport?

An employer should not retain the passport without the employee’s clear written consent.

Can an employee be dismissed without warning?

Dismissal without notice may be permitted in limited cases involving serious misconduct. The employer must be able to establish that the statutory conditions were satisfied.

When is dismissal considered unfair?

Dismissal may be unfair where it lacks a lawful reason, is discriminatory or retaliatory, is based on unsupported allegations, or was carried out without the required procedure.

Is overtime compulsory?

Overtime may be required within the limits and conditions allowed by law. The employee may be entitled to additional payment or compensatory rest.

Does an employee receive end-of-service benefits after resignation?

The answer depends on the date employment began, length of service, applicable legal framework, contract, and circumstances in which employment ended.

Can an employer reduce an employee’s salary?

A salary should not be reduced unilaterally in violation of the employment contract or statutory protections. Any lawful amendment should be properly documented and agreed where consent is required.

What should an employee do after being dismissed?

The employee should obtain the termination notice, preserve the contract and salary records, request a calculation of final entitlements, and seek legal advice promptly because procedural deadlines may apply.

Conclusion

Oman’s new Labour Law provides important protections for employees while maintaining the employer’s right to organise the business, assess performance, and take lawful disciplinary action.

Employees are entitled to written contractual terms, timely payment of wages, regulated working hours, leave, weekly rest, overtime compensation, protection from unfair dismissal, and payment of their lawful entitlements when employment ends.

Employers, in turn, are entitled to expect proper performance, attendance, confidentiality, compliance with lawful instructions, and protection of the company’s legitimate interests.

Most employment disputes are decided by reference to the written contract, payroll records, attendance data, warnings, correspondence, investigation documents, and the procedure followed by both parties. Obtaining legal advice at an early stage can help preserve evidence, prevent procedural mistakes, and improve the prospects of reaching an effective resolution.

Employment Law Services in Oman

Ibrahim Al Saadi Advocates & Legal Consultants advises employees and employers on employment contracts, unpaid salaries, overtime, disciplinary investigations, resignation, unfair dismissal, end-of-service benefits, and labour disputes in the Sultanate of Oman.

Email: info@ibrahimalsaadi.com
Website: www.ibrahimalsaadi.com