Globalization Partners provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Oman. Your candidate is hired via Globalization Partners’ Oman PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
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Our comprehensive solution and Global PEO service enable customers to run payroll in Oman while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Oman.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Oman is located on the Southeastern coast of the Arabian Peninsula at the mouth of the Persian Gulf. Oman is an absolute monarchy and its current head, Sultan Haitham bin Tariq Al Said, recently came to power in January 2020. Oman is promoting tourism as a way to diversify its economy.
When negotiating terms of an employment contract and offer letter with an employee in Oman, it may be useful to keep the following in mind:
Oman celebrates 9 national holidays:
- New Year’s Day
- Lailat Al Miraj
- Eid Al Fitr
- Renaissance Day
- Eid Al Adha
- Al Higra
- Birthday of HM Sultan Qaboos
- Oman National Day
- Milad Un Nabi
Bonus in Oman
Annual and performance-based bonuses are common in Oman.
Oman Working Hours
The work week is generally between 40 and 48 hours long, although it may be reduced during Ramadan.
Vacation in Oman
After completing six months of service, employees are generally entitled to 30 calendar days of paid annual leave, which may be taken in parts.
Sick Leave in Oman
In general, employees are entitled to 10 weeks of sick leave per year. Sick leave is usually paid as follows:
- First two weeks of leave: 100% of wages
- 3rd and 4th weeks of leave: 75% of wages
- 5th and 6th weeks of leave: 50% of wages
- 7th through 10th weeks of leave: 25% of wages.
Employees are also generally entitled to annual emergency leave of six days with full pay, but no more than two days can be taken at a time.
Special Leave in Oman
Employees are also eligible for the following types of leave with full pay:
- Marriage: three days
- Death of close relative: three days
- Death of uncle or aunt: two days
- Al-Haj (pilgrimage), once and only after employment of at least one year: 15 days
- Death of a Muslim wife’s husband: 130 days
- Taking an examination: 15 days
Maternity Leave in Oman
Female employees are generally entitled to 50 days of paid maternity leave.
There is no statutory paternity leave in Oman.
Termination/Severance in Oman
Probationary periods of up to three months are permitted. Employees can be terminated within that time with seven days’ notice.
Employees working under a fixed term contract should be given 30 days notice if there is no intention to renew the contract, along with the reason for non-renewal. Failure to provide notice may result in a lawsuit by the employee.
Employees working under indefinite term contracts are also entitled to 30 days’ notice of termination. Such termination should be for “reasonable and fair” cause with documentation. Such cause can be difficult to prove in Oman.
At the end of a contract, employees are generally eligible for an indemnity payment. This is usually paid as follows:
- Up to three years of employment: 15 days’ pay per year worked
- More than three yeas of employment: one month’s salary per year worked.
Employers must contribute 10.5% of wages to social security and 1% for industrial illnesses and injuries.
Omani employees must contribute 7% of their wages to social security.
Social security contributions are not applicable for expatriate employees.
Health Insurance in Oman
Oman has free, universal healthcare for its citizens. Expats need private insurance.
Additional Benefits in Oman
Common employee benefits include:
- Medical benefits
- Education allowance
- Mobile phone
- Ramadan and Eids allowances
- Travel allowance
- Housing allowance
Employment Contracts in Oman
It is legally required to put a written employment contract in place in Oman, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Oman should always state the salary and any compensation amounts in Omani rial rather than a foreign currency.
This information is provided as generally accepted information and is not intended as advisory services.
Why Globalization Partners
Establishing a branch office or subsidiary in Oman to engage a small team is time-consuming, expensive and complex. Labor law in Oman has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Oman. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Oman PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Oman, please contact us.