Oman's current Labour Law was issued by Royal Decree 53/2023 and took effect on 31 July 2023, replacing the 2003 law. For expatriate employees it guarantees at least 30 days' paid annual leave, a probation period of no more than 3 months, 30 days' written notice for monthly-paid staff, and an end-of-service gratuity of at least one basic wage for each year of service until the Social Protection Fund's savings scheme takes over. Any claim must first go to the Ministry of Labour for settlement before a court will hear it.
If you are already in a dispute, our labour lawyers in Muscat can review your contract and calculate your entitlements, and you can read the full text on our Oman Labour Law page.
Key provisions of the 2023 Labour Law
- A standard week of 40 working hours and at least 2 consecutive paid rest days.
- 7 days' paid paternity leave and 98 days' maternity leave.
- Compensation of 3 to 12 months' gross wage for arbitrary dismissal.
- 10 paid hours a week during the notice period to look for a new job.
- The right of a foreign worker to remain in Oman while a court claim for his dues is pending.
Employment contracts and probation
The contract must be in writing and in Arabic, in two copies, and approved by the competent authority. It may be written in another language only if an Arabic version approved by both parties is attached. Where there is no written contract, the worker may prove his rights by any means of evidence.
A fixed-term contract cannot exceed 5 years, although it can be renewed, and renewals count towards total service. A contract with no stated term, or one that expires while both parties carry on without a written agreement, is treated as indefinite. The contract must state the notice for non-renewal, and the notice given by the employer cannot be less than one month.
Probation period
Probation may not exceed 3 months for monthly-paid workers or 2 months for others, and a worker can be placed on probation only once with the same employer. Either side may end the contract during probation by giving at least 7 days' notice. If the worker passes, the probation period counts as service.
Working hours, overtime and rest days
- No more than 8 actual working hours a day and 40 a week, with at least one hour's break for rest and meals that is not counted in working time, and no more than 6 continuous hours.
- During Ramadan, Muslim workers may work no more than 6 hours a day or 30 hours a week.
- Overtime needs the worker's consent, and total hours may not exceed 12 a day. It is paid at the basic hourly wage plus at least 25% for daytime hours and 50% for night hours (9 pm to 5 am), or compensated with time off.
- Work on a weekly rest day or public holiday earns an extra 100% of the basic daily wage on top of that day's pay, or a replacement day off.
Annual, sick, maternity and special leave
- Annual leave: at least 30 days on full gross pay, which the worker may take after 6 months' service. Untaken leave can be carried over up to 30 days, unless it was untaken because of work needs. A foreign worker is entitled to a return air ticket home for the leave agreed in his contract, and any leave balance is paid at the gross wage when employment ends.
- Sick leave: up to 182 days a year: full pay for days 1 to 21, 75% for days 22 to 35, 50% for days 36 to 70 and 35% for days 71 to 182. Under the Social Protection Law, the employer pays the first 7 days and the Fund covers the rest for insured workers; this branch applies to non-Omanis only in the categories its board decides.
- Maternity and family: 98 days' maternity leave (up to 14 of them before the birth), one paid nursing hour a day for a year afterwards, and optional unpaid childcare leave of up to one year.
- Special paid leave: 7 days' paternity leave, 3 days on marriage, 3 to 10 days on bereavement depending on the relative, and 15 days for Hajj once after one year's service.
Termination and notice
Notice periods
Either party may end an indefinite contract for a legitimate reason with written notice of 30 days for monthly-paid workers and 15 days for others, unless the contract sets a longer period. A party who does not give notice must pay the other the wage for the notice period, or the part not served, based on the last gross wage.
Dismissal without notice or gratuity
Article 40 allows dismissal without notice and without end-of-service gratuity in limited cases, including:
- using a false identity or forged documents to obtain the job;
- a mistake causing serious material loss, provided the employer reports it to the authorities within 30 working days of learning of it;
- absence without acceptable excuse for more than 7 consecutive days, or more than 10 separate days in a year after a written warning at 5 days;
- disclosing work secrets, a final conviction for a felony or dishonesty offence, intoxication at work, or assault at work.
When an employee can leave immediately
A worker may stop working without notice and keep all his rights, including gratuity and compensation, if the employer cheated him when contracting, failed to pay his wage for more than 2 consecutive months, assaulted him, or ignored a serious danger to his safety.
Arbitrary dismissal
Dismissal is arbitrary if it is based on grounds such as sex, religion, pregnancy or disability, or on a genuine complaint the worker made against the employer. The court must order either reinstatement or compensation of 3 to 12 months' last gross wage, in addition to the end-of-service gratuity, pay for the notice period, and social insurance contributions up to the final judgment.
End-of-service benefits for expatriates
Under Article 61, a non-Omani worker who is not covered by the Social Protection Law is entitled on leaving to a gratuity of not less than the basic wage for each year of service, with part-years paid pro rata, calculated on the final basic wage. Service that began before the new law counts towards the total.
This will change. The Social Protection Law (Royal Decree 52/2023) creates a savings scheme that replaces the gratuity for non-Omani workers, funded by a monthly employer contribution of 9% of basic wage. Following an amendment by Royal Decree 60/2025, contributions start on a date set by the Social Protection Fund's board, no later than four years from 19 July 2023. For service before that date, the employer still owes the gratuity under the Labour Law, or may settle it into the scheme.
All wages and dues must be paid immediately when employment ends, or within 7 days if the worker resigned. The employer must also repatriate the worker within 60 days and, on request, give him a free end-of-service certificate. If your contract was signed under the old 2003 law, have a lawyer check how the earlier years are calculated.
How labour disputes are resolved: the Ministry, then the court
- Gather your contract, payslips, bank statements, warnings and termination letter.
- File a complaint with the Ministry of Labour, which offers an online labour complaints service. A dismissed worker should do so within 30 days of being notified.
- The Ministry attempts a settlement within a maximum of 30 days. A signed settlement record is directly enforceable.
- If settlement fails, the Ministry refers the case to the competent court within 7 days of the last session. A case filed directly in court without this step is inadmissible.
- Workers' claims are exempt from court fees.
Claims under the Labour Law lapse one year after the right falls due, so do not wait. If you win, we also handle enforcement of judgments.
Practical points for employers
- Use a written Arabic contract that states the notice period and benefits; our team can help with drafting employment contracts.
- With 25 or more workers you need an approved penalties regulation, and with 50 or more, work regulations and a grievance system.
- Before any penalty, notify the worker in writing and hear his defence. A fine may not exceed 5 days' wage in a month.
- A non-compete clause is valid only if limited in time, place and type of work, and for no more than 2 years.
Frequently asked questions
Can my employer keep my passport?
No. The employer may keep a worker's passport or personal documents only with the worker's written consent.
How long do I have to claim my rights?
A dismissed worker should complain to the Ministry within 30 days of notification, and any right under the law lapses one year after it falls due.
Can I stay in Oman while my case is heard?
Yes. A foreign worker who files a lawsuit for his dues may remain in Oman until it is decided.
Speak to a labour lawyer in Oman
Dr. Abdullah Al Rashdi Office, Advocates and Legal Consultants, in Al Khuwair, Muscat, advises employees and employers on termination, gratuity and Ministry of Labour complaints. Message us on WhatsApp or call +968 92000841 to book a consultation.
This article is general information about Omani law and is not legal advice for a specific case. Every contract and dispute has its own facts, so please consult the firm before taking any step.