Employment law in Oman
Employment law in Oman is primarily governed by the Oman Labor Law (Royal Decree No. 35/2003), which was last amended by Royal Decree No. 69/2020. This law covers a wide range of topics, including contracts, wages, working hours, leave entitlements, termination of employment, health and safety, and dispute resolution. It aims to regulate the relationship between employers and employees, ensuring both parties have clear rights and obligations.
Here is an overview of the key aspects of employment law in Oman:
1. Employment Contracts
Written Contracts: A written contract is required for all employees in Oman. The employment contract must specify key terms such as the employee's duties, salary, work hours, and duration of employment (whether permanent or fixed-term). The contract should be signed by both the employer and the employee.
Types of Contracts:
Permanent Contracts: These contracts are open-ended and do not specify an end date.
Fixed-Term Contracts: These contracts have a specified duration and are used for temporary or specific tasks. The maximum duration of a fixed-term contract is generally two years, after which the contract may be renewed.
2. Working Hours
Standard Working Hours: The standard workweek in Oman is 48 hours, typically distributed over six days, with a maximum of 8 hours per day. For employees working in certain sectors, such as retail or hospitality, the working hours may differ.
Rest Periods: Employees are entitled to a one-hour break during the workday if working for more than six hours. This break is typically taken for lunch.
Overtime: Employees who work beyond the standard working hours are entitled to overtime pay. Overtime is usually paid at a rate of 1.25 times the regular wage for the first two hours and 1.5 times the regular wage for hours worked beyond that.
3. Minimum Wage
As of 2021, Oman introduced a minimum wage for Omani nationals, set at OMR 325 per month for employees working in the private sector. This wage is applicable to Omani nationals, but foreign workers are generally paid according to their employment contract and market conditions.
There is no national minimum wage for foreign workers, but their salary must be aligned with the terms of their contract and the general labor market for their industry.
4. Leave Entitlements
Annual Leave: Employees are entitled to 30 days of paid annual leave per year after completing one year of service with the same employer.
Sick Leave: Employees are entitled to paid sick leave for up to 10 days per year, provided they provide a medical certificate. Beyond this, the employee may be entitled to unpaid leave.
Maternity Leave: Female employees are entitled to 50 days of paid maternity leave, with the first 30 days paid at full salary and the remaining 20 days at half salary.
Paternity Leave: Male employees are entitled to 3 days of paid paternity leave following the birth of a child.
Public Holidays: Employees are entitled to public holidays designated by the government. If an employee is required to work on a public holiday, they are typically entitled to overtime pay or an alternative day off.
Hajj Leave: Employees who have worked for more than five years with the same employer are entitled to 10 days of unpaid leave for the pilgrimage to Hajj.
5. Social Security and Benefits
Social Security: Omani nationals are entitled to social security benefits, which include pension, health insurance, and unemployment benefits. Employers are required to contribute to the Oman Social Insurance Scheme on behalf of their Omani employees.
Health Insurance: Oman has a government-run health insurance system for citizens. However, foreign workers typically rely on private insurance provided by employers or their own plans.
End-of-Service Benefits: Employees are entitled to end-of-service gratuity when their contract is terminated. The gratuity is calculated as half a month’s salary for each year of service for the first three years and one month’s salary for each subsequent year. The gratuity is paid for both Omani nationals and foreign employees.
6. Termination of Employment
Notice Period: Both employees and employers must provide notice if they wish to terminate the employment contract. The notice period is typically one month. If the contract is terminated without notice, the party terminating the contract must compensate the other party for the duration of the notice period.
Dismissal: Employees can be dismissed for serious misconduct, including theft, violence, or failure to fulfill job duties. However, employers must follow proper procedures, including giving the employee the opportunity to explain their actions.
Redundancy: If a business is downsizing or restructuring, employees may be laid off. In this case, they are entitled to severance pay based on the length of service. The severance pay is calculated as a percentage of the employee's salary.
Resignation: Employees can resign from their position by providing the required notice period. If an employee resigns before completing their contract, they may be required to pay a penalty (usually the equivalent of one month's salary).
7. Non-Discrimination and Equal Treatment
Equal Opportunity: The Omani Labor Law prohibits discrimination based on gender, nationality, race, and religion. The law requires that employees be treated fairly and equitably in terms of salary, job duties, and promotions.
Equal Pay: The law requires that employees performing equal work receive equal pay. However, wage disparities may exist based on experience, skills, or job type.
8. Trade Unions and Collective Bargaining
Trade Unions: Oman does not have a significant trade union movement, as labor unions are not generally permitted. However, employees may form professional organizations in certain sectors. Collective bargaining in the traditional sense is not common, but employers may engage in discussions with employees on employment-related matters.
Labor Disputes: Labor disputes are typically handled through conciliation committees or the Ministry of Manpower. Employees may seek legal recourse for disputes regarding wages, termination, or working conditions.
9. Health and Safety
Workplace Health and Safety: Employers are required to ensure the health and safety of employees by providing a safe working environment, training on workplace hazards, and appropriate safety equipment.
Accidents at Work: Employees who are injured at work are entitled to workers' compensation benefits, which cover medical expenses and compensation for lost wages. Employers are required to have insurance to cover workplace accidents.
10. Labor Inspections and Compliance
The Ministry of Manpower is responsible for enforcing labor laws in Oman. They conduct inspections to ensure compliance with the law, particularly in sectors that employ large numbers of foreign workers, such as construction and domestic work.
The Ministry also handles complaints regarding labor law violations, including issues related to wages, working conditions, and employment rights.
11. Child Labor and Protection of Minors
Child Labor: The employment of children under the age of 15 is prohibited in Oman. Minors aged 15 to 18 may be employed but only in jobs that are not considered hazardous or harmful to their health and well-being.
Protection of Young Workers: Young workers are also limited in the types of work they can perform and are entitled to additional protections regarding working hours and conditions.
Summary of Key Worker Rights in Oman:
Employment Contracts: Written contracts are required, specifying duties, salary, and terms.
Working Hours: The standard workweek is 48 hours.
Minimum Wage: The minimum wage for Omani nationals is OMR 325 per month.
Leave Entitlements: Includes 30 days of annual leave, paid sick leave, maternity leave (50 days), and public holidays.
Social Security: Omani nationals are entitled to social security benefits, including pensions and health insurance.
Termination: Employees and employers must give one month's notice before terminating the contract.
Non-Discrimination: The law prohibits discrimination in the workplace based on gender, nationality, race, or religion.
End-of-Service Benefits: Employees are entitled to gratuity upon termination of employment.
Health and Safety: Employers are required to provide a safe working environment and cover workplace accidents.
Labor Disputes: Disputes can be resolved through conciliation or by contacting the Ministry of Manpower.
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