Oman – Professional Employer Organization

The conventional approach requires you to establish a branch office and start a legal entity in Oman. However, in PEO Middle East we allow you access and hire highly skilled workers on your behalf. Meanwhile, you keep full control of their work while staying compliant with the different labor laws of the country.

Oman Compensation and Benefits

Oman Professional Employment Organization- An international workforce is an essential tool for your company's growth. Expansion comes with a few hurdles, though. Managing your team in a single office involves several administrative tasks. Those responsibilities become even more challenging when you have employees around the world.

Table of contents

  1. Oman
  2. Hiring in Oman
  3. Employment contracts in Oman
  4. Severance Laws in Oman
  5. Other benefits in Oman
  6. Benefits of working side-by-side with us
  7. Why PEO Middle East in Oman?


The country ranks as the 69th most peaceful nation worldwide, in addition, Oman is classified as a high-income economy. Similarly, the economy of this country is driven mainly by oil exports; however, the government has made efforts to diversify it over the past few years. Other industries of the country include:

  • Tourism.
  • Fishing.
  • Trade of dates
  • Agricultural products.

In addition, the government is also working on expanding natural gas exports and stimulating foreign investment in petrochemicals, telecommunications, and electric power. Thus, one of the measures to reduce the dependency on the declining oil reserves is reducing the oil sector’s main GDP to 10% from the current share of 43%.

The country has a strategical position at the Persian Gulf; in addition, Oman borders Saudi Arabia to the west, the UAE to the northwest, Yemen to the southwest, and shares maritime borders with Pakistan and Iran. In addition, the coast is formed by the Gulf of Oman to the northeast and the Arabian Sea to the southeast.

Hiring in Oman

Certainly, the Ministry of Manpower (MoM) approves employment contracts in the country. Similarly, you must accompany the contract with an Arabic translation if the contract is drafted in any other language; however, both parties must agree. Thus, the employment contract must include:

  • Employer’s name.
  • Address and establishment of the workplace.
  • Worker’s name.
  • Date of birth.
  • Occupation or job.
  • Address and nationality.
  • Basic salary.
  • Allowances.
  • Method and timing of payment.
  • And the period of notice if any of the parties wishes to terminate the contract.

Different forms of contracts: contracting work, employment, with a private entrepreneur or investor

  • Self-employed/Independent contractor.
  • Worker/Employee.

Employment contracts in Oman

A fixed contract is valid for an established period of time and is more applicable to situations where the worker is hired for projects that require specific periods of time to conclude. Similarly, the contract automatically finishes at the expiry date or date of expiration, although both parties can renew it with the same terms.

On the other hand, unlimited or indefinite contracts are valid for an indefinite period of time while both parties continue the employment disposition. That is to say, unlimited employment contracts have no expiry date. However, termination for this contract requires prior notice and the company must provide a ‘fair and reasonable’ cause if they want to terminate the contract.

In addition, the law of Oman states that there is a maximum of 9 working hours per day, or 48 hours weekly. Therefore, if employees work any additional hours, they have the right to receive overtime pay.

Severance Laws in Oman

The company has the right to terminate an employee according to the Labor Law and the terms agreed on between the company and the worker. Likewise, the labor law states the mandatory grounds where the organization can terminate the employment contract (without having to pay end-of-service benefit).

Similarly, in the absence of any ground for termination, or other terms approved by the Ministry of Manpower (MoM) (for instance, a disciplinary procedure validated by the MOM), the worker may file a claim for unfair dismissal. Thus, if there were unfair dismissal the court can order:

  • Payment of compensation of no less than 3 months of the salary.
  • Reinstatement.
  • End-of-service gratuity.
  • Other benefits stated by the law.

Similarly, there is a 30 day of notice for termination of indefinite contracts. On the other hand, there is no minimum notice period for terminating fixed-term contracts. However, the employment laws of Oman do not state severance payments.

In PEO Middle East, we provide our partners in Oman with a team of specialized experts; they will help you in every step of the hiring process. In addition, we will ensure you comply with the different employment laws of Oman.

Other benefits in Oman

Certainly, all workers have the right to the following benefits with their full pay:

Death of close relative: 3 days, of a Muslim wife’s husband: 132 days

Death of an aunt or uncle: 2 days.

Al-Haj (pilgrimage) once and only after continuous employment of at least 1 year: 15 days

Marriage: 3 days

Examination: 15 days.

Benefits of working side-by-side with us

  1. Enhanced efficiency: in PEO Middle East we allow you to have better management of your employees and the smoothing of your HR tasks.
  2. Cost-effective: working with us you will save money since we will take care of all your administrative processes efficiently.
  3. Benefits package: we provide you with access to other benefits to provide your current employees and potential candidates with attractive job offers.
  4. In-country support: our team of specialized experts in Oman will assist you to understand the best practices of the market and solving issues.
  5. Compliance: we ensure you comply with the different rules, employment laws, and regulations. In PEO Middle East we allow your business to stay free of legal issues.
  6. Expand confidently: you will expand successfully into the country knowing that we will manage your business processes efficiently.

Why PEO Middle East in Oman?

If you are worried about accessing skilled workers rapidly while you comply with the different labor laws of Oman, you are in good hands. In PEO Middle East we allow investors and entrepreneurs to focus on their core business activities while we take care of:

  • Workplace Benefits.
  • Employee wellbeing.
  • Disability insurance and life insurance.
  • Dependent care.
  • Employing workers, etc.

In conclusion, if you would like to find out how we will provide you with the best PEO solutions in Oman; you can get in touch with us via email via [email protected]. Or you can call us at +971 433 1 688.