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With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, The Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance by September 2025 in Oman. 

01 Overview of the Labor Law System

1.Legal System

Oman operates under a civil law system, with legislation codified primarily through Royal Decrees. Judicial interpretation plays a limited role compared to common law jurisdictions. Employment relationships in Oman are governed almost exclusively by statutory law, supplemented by executive regulations and ministerial decisions.

2.Resources and Agencies

The main statutes and regulations relating to employment are the Labour Law, the Social Protection Law, Ministerial Decisions issued by the Ministry of Labour, Occupational Safety and Health Regulations (to be issued), and special regulations for specific sectors.

02 Employment Qualifications and Classification

1.Employment Age

The minimum legal working age is 15 years.

Juveniles between 15 and 18 may be employed only under protective conditions:

? Prohibited from night work and hazardous occupations.

? Limited to 6 hours per day with mandatory rest breaks.

? Overtime is not permitted.

2.Qualifications for Employment

Foreign businesses cannot directly hire staff without a legal presence, one way or the other, in Oman.

3.Classification of Employment

The Labour Law recognises the following contractual forms:

? Fixed-term contract

? Indefinite contracts

? Temporary, part-time, and remote work

4.Foreign Workers

Employers must obtain a work permit from the MOL before hiring. Permits are subject to Omanisation quotas and fees. The worker must also obtain a legal entry visa, and sponsorship by the employer. Certain jobs are reserved exclusively for Omanis.

03 Recruitment and Employment Contracts

1.Background Examination

Omani law does not contain a single statute dedicated to pre-employment background checks, but several provisions of the Labour Law, immigration regulations, and general civil and criminal laws indirectly govern what employers can and cannot do. Employers are free to verify a candidate’s suitability for a role, but this must be done with respect for privacy, dignity, and non-discrimination principles.

2.Contract Types

Article 33 of the Labour Law makes it very clear that all employment contracts in Oman must be in writing and in Arabic. While a bilingual version may be used, the Arabic text always prevails in case of conflict. The contract must be signed in duplicate, with each party keeping a copy, and it must be registered with the Ministry of Labour.

3.Probationary Period

Probationary periods are widely used in Oman, but their length and terms are strictly regulated. Under Article 37, a probationary period must be clearly stated in the employment contract and cannot exceed three months for employees who are paid monthly. For employees paid on a weekly, daily, or hourly basis, the maximum probationary period is two months.

04 Working Standards

1.Remuneration and Statutory Benefits

Oman’s wage structure is straightforward but highly regulated to protect workers. Wages must be paid in Omani Rials unless the contract expressly provides for payment in another currency.

2.Social Security and Employment Taxes

Oman’s Social Protection Law, introduced in 2023, modernized the country’s social security system. Employers and employees are required to make monthly contributions to the Social Protection Fund. The standard employer contribution is approximately 11.5% of the employee’s gross wage, while employees contribute around 7%. Coverage includes retirement pensions, disability benefits, unemployment support, and insurance for work-related injuries.

3.Working Hours

The standard working week in Oman consists of a maximum of eight hours per day and 40 hours per week, according to Article 70. During the holy month of Ramadan, Muslim employees are entitled to reduced hours of six hours per day and 30 hours per week. Continuous work may not exceed six hours without at least one hour for rest and meals.

4.Rest and Leave

Employees are entitled to a minimum of two consecutive paid rest days per week under Article 77, typically Friday and Saturday. Annual leave entitlements are generous: 30 days of paid leave per year, accruing after six months of continuous service. 

05 Occupational Health and Special Protection

1.Occupational Health and Security

Oman places a strong emphasis on workplace safety and the protection of employees’ health. Under the Labour Law, employers have a legal duty to ensure that working environments are safe and that adequate precautions are taken to prevent injury or illness. Article 104 specifies that before a worker begins employment, the employer must inform them of any occupational hazards and explain the protective measures required.

2.Special Protection

? Juveniles: The minimum age for employment is 15, although this may be raised for hazardous industries by ministerial decision.

? Women: Women enjoy equal rights under the law and are explicitly protected against discrimination and unfair dismissal due to pregnancy, childbirth, or breastfeeding.

? Persons with disabilities: Employers with 40 or more employees are required to hire a certain percentage of Omani workers with disabilities in roles suited to their abilities. 

06 Personal Information and Privacy

1.General Rules

There are certain obligations regarding employee privacy which are embedded in the Labour Law and related regulations. Employers are explicitly required to maintain the confidentiality of all personal data collected about their employees. This includes identity documents, health records, financial information, and performance evaluations.

2.Transnational Transfer

The Ministry of Labour may require that certain employment-related data remain accessible within Oman, particularly for compliance inspections. Employers should therefore maintain local copies of all key records even if information is processed abroad.

07 Anti-Discrimination and Anti-Harassment

1.General Rules

Omani law emphasizes respect for human dignity in the workplace. The Labour Law explicitly prohibits employers from terminating employment contracts or taking other adverse actions based on a range of protected characteristics, including gender, origin, religion, social status, disability, and union membership. Employers are also prohibited from retaliating against employees who file complaints or participate in union activities.

2.Protective Characters

The Labour Law explicitly protects employees from discrimination or dismissal on the basis of:

? Gender and pregnancy status

? Religion and creed

? Social status or disability

? Union affiliation or activity

08 Internal Policies

1.Applicability

Employers are expected to manage employees through clear internal policies, particularly larger organizations. Companies with 50 or more employees must develop a comprehensive internal work regulation document, covering rights, duties, promotion systems, wage structures, and disciplinary procedures.

2.Validity

For internal policies to be legally enforceable, they must be written in Arabic and approved by the Ministry. If the Ministry does not respond within two months, the policies are deemed automatically approved. Employers must provide each worker with a copy of the final, approved regulations.

3.Whistleblowing

There is no dedicated whistleblower protection law in Oman. However, employees may report violations to the Ministry of Labour without fear of dismissal or retaliation. Employers should establish confidential reporting mechanisms to handle such disclosures internally before matters escalate to the authorities.

09 Transactions

1.Employment Relationship

When a company is sold, merged, or otherwise transferred, the Labour Law provides that employment contracts remain valid and binding on the successor employer. This means employees automatically transfer to the new owner with their rights, benefits, and seniority intact. The successor is jointly liable with the previous employer for any outstanding obligations, such as unpaid wages or benefits.

2.Compensation

There is no statutory obligation to pay employees compensation solely because of a change in ownership or restructuring. However, if redundancies occur as a result of the transaction, the normal termination rules apply, including notice periods and severance pay.

10 Termination of Employment

1.Termination Grounds

Employment cannot be ended arbitrarily. Employers must have a legitimate reason, such as poor performance, economic necessity, or restructuring. The Labour Law lists specific cases where immediate dismissal without notice is allowed, including serious misconduct, fraud, repeated absences, or criminal conviction.

2.Termination Procedure

Standard termination requires written notice:

? 30 days for employees paid monthly

? 15 days for employees paid otherwise

3.Termination Protection

Certain employees are protected from dismissal. For instance, termination based on pregnancy, union membership, or complaint filing is strictly prohibited and deemed arbitrary.

4.Severance and Compensation

For employees not covered by the Social Protection Fund, severance pay is calculated at one month’s basic wage for each year of service. For employees within the Social Protection system, severance is replaced by retirement and insurance benefits.

5.Wrongful Termination

If a court finds a dismissal to be unlawful, it may order reinstatement or compensation. Compensation ranges from a minimum of three months’ gross salary to a maximum of twelve months, depending on the employee’s circumstances and length of service.

6.Mass termination and Layoffs

Downsizing due to economic hardship requires prior Ministry approval. Employers must provide three months’ notice and demonstrate the necessity of reductions. Alternatives such as reduced hours or temporary unpaid leave must be considered before terminations are approved.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

Confidentiality obligations are both statutory and contractual. The Labour Law explicitly prohibits employees from disclosing an employer’s trade secrets during and after employment.

2.Non-Compete and Non-Solicitation

Non-compete agreements are permitted but must be reasonable. The Labour Law limits such clauses to a maximum duration of two years and a geographic scope directly related to the employer’s area of operation. Employers cannot enforce a non-compete if they terminated the employee without cause. Compensation may be sought for violations, but excessive claims are void if deemed coercive.

Non-solicitation clauses, while not specifically addressed in the law, are generally treated under the same principles as non-competes and are enforceable if reasonable.

12 Work Representation and Trade Unions

1.Work Representation

Omani law permits the formation of trade unions to represent workers’ interests. These unions may negotiate collective agreements, represent employees in disputes, and participate in social dialogue with employers and government bodies.

2.Trade Unions

Oman's Labour Law introduces comprehensive provisions on trade unions in Chapter Seven. This framework promotes worker representation while balancing employer interests through registration and ministerial oversight. 

13 Dispute Resolution

1.Procedures & Enforcement

The Labour Law establishes a two-step dispute resolution process. Employees must first file a complaint with the Ministry of Labour, which will attempt mediation within 30 days. If mediation fails, the matter is referred to the competent court within seven days.

2.Waiver & Enforcement

Employees cannot legally waive statutory rights. Any agreement that seeks to limit or eliminate rights provided by the Labour Law is void unless it is clearly more favorable to the employee.

14 Others

1.Latest Development & Trends

Several trends are shaping Oman’s labor landscape:

? Omanisation

? Digital compliance

? Health and safety

2.Cultural and Religious Considerations

Islam plays a central role in daily life and workplace practices:

? Adjust working hours during Ramadan to comply with reduced-hour requirements.

? Respect prayer times and provide space for worship.

? Ensure gender-sensitive policies, particularly around facilities and dress codes.

* To avoid ambiguity, this article should not be regarded as legal advice.

Authors

Yasin Chowdhury is an associate of BSA Law Muscat office. Yasin’s areas of expertise include commercial, corporate & M&A and regulatory & compliance, as well as deep industry knowledge in real estate and leisure & hospitality. He frequently advises leading international companies in their operations in Oman and has assisted major retail brands to set up their businesses in the region. 

Translator

Zhou Hao, Master of Laws, Associate at Anli Partners. Areas of expertise: Labor Law, Dispute Resolution, ESG Compliance.