City squares articles

The Oman labour law in force in 2026

Most employment disputes in Oman start with an employer who relied on an old contract template or an old rule of thumb. The law changed in 2023, and parts of the system around it changed again in 2025 and 2026. This guide sets out what the current rules require of a private sector employer, with the article numbers so you can check each point.

The Oman labour law today is the Labour Law issued by Royal Decree 53/2023. It was signed on 25 July 2023, published in Official Gazette 1504 on 30 July 2023, and took effect the next day. It replaced the 2003 law, has 150 articles, and applies to Omani and foreign workers alike. You can read the full text of Royal Decree 53/2023 on the Omani laws database.

The law has one amendment so far. Royal Decree 66/2026, published on 28 June 2026, repealed Article 146 on bribery by workers. Private sector bribery now sits in the Penal Code instead, with prison of one to three years for taking a bribe to do a job. Many of the working details, such as fees and the wage system, are set by ministerial decisions under the law.

Contracts: what must be in writing

Written, in Arabic, in two copies. Article 33 requires a written contract in Arabic, one copy for each side. A contract in another language is allowed if an agreed Arabic copy is attached. If there is no written contract, the worker can prove his rights by any means, which usually works against the employer.

Fixed terms have a ceiling. Under Article 34, a fixed-term contract cannot exceed 5 years, though the parties can renew it. Article 35 turns a contract into an open-ended one if it runs past 5 years, or if both sides simply carry on after it expires with no written renewal.

Required details. Article 36 lists what the contract must state, including the job, the basic wage and allowances, the pay date, and the notice for not renewing. An employer's notice to the worker must be at least one month.

For foreign staff, the job title in the contract must match the work permit. Our guide to the Oman work permit and employment visa explains how the two fit together.

Probation, notice and ending a job

Probation. Article 37 caps probation at 3 months for monthly paid staff and 2 months for others. It can be used only once with the same employer, and either side can end the contract during it with 7 days' notice.

Notice. Article 38 lets either side end an open-ended contract for a valid reason with written notice of 30 days for monthly paid staff, or 15 days for others. If notice is not given, the party ending the contract pays the wage for the notice period. During notice, Article 39 gives the worker 10 paid hours a week to look for a new job.

Dismissal without notice. Article 40 lists nine cases where an employer can dismiss without notice or gratuity. They include forgery, serious loss caused by the worker, and absence of more than 7 days in a row, or 10 days in a year after a written warning.

Poor performance. Under Article 43, the employer must first tell the worker what is lacking and give at least 6 months to improve.

The worker's right to walk out. Article 41 lets a worker leave without notice, keeping the gratuity, if wages go unpaid for more than 2 months in a row, or in cases of fraud or assault.

Working hours, overtime and rest days

Normal hours. Article 70 sets a limit of 8 working hours a day and 40 a week, not counting a daily rest hour, and no stretch of work may run past 6 hours. In Ramadan, the limit for Muslim workers is 6 hours a day or 30 a week.

Overtime. Article 71 caps total daily hours at 12. Overtime is paid at the basic hourly rate plus at least 25 per cent by day, or 50 per cent at night, and time off in lieu is also allowed.

Rest days and holidays. Article 77 gives at least 2 paid rest days a week, back to back. Work on a rest day or public holiday earns an extra 100 per cent of the daily basic wage on top of the day's pay, or a day off in return.

Leave entitlements

Annual leave. Article 78 gives at least 30 days of fully paid leave a year, which the worker can take after 6 months of service. Unused leave can be carried forward up to 30 days. Under Article 81, leave still owed when a job ends must be paid out.

Sick leave. Article 82 allows up to 182 days a year, and pay runs at 100 per cent for days 1 to 21, then 75 per cent, 50 per cent and finally 35 per cent from day 71.

Who pays sick leave has changed. From 19 July 2026, Social Protection Fund Decision R/13/2026 brought foreign workers into the sick leave insurance branch. The employer now pays 1 per cent of the wage each month to the fund and covers the first 7 sick days itself, and the fund pays from day 8.

Family leave. Article 84 grants 98 days of paid maternity leave and 7 days of paternity leave. It also gives 3 days for marriage, and 2 to 10 days on the death of a close relative. A nursing mother gets one paid hour a day for a year under Article 76.

Paying wages the way the law expects

Under Article 87, the employer has not paid a wage until it reaches the worker's account at a local bank or licensed financial body. Ministerial Decision 729/2024 on the Wage Protection System adds the timing, and it says wages must be moved through the system within 3 days of the end of each pay period.

The Ministry can respond to a breach with a warning or a freeze on new work licences, and it can fine the employer OMR 50 per worker, doubled for a repeat breach.

Two limits protect pay from inside the company: Article 65 caps a disciplinary fine at 5 days' wage per breach in a month. Article 68 caps deductions for damage the worker caused on purpose at 25 per cent of the monthly wage.

End-of-service gratuity and the coming savings scheme

Article 61 requires a gratuity for workers who do not benefit from the Social Protection Law's pension rules, which in practice means most foreign staff. It is at least one basic wage for each year of service, with part years paid pro rata, and it is based on the worker's final basic wage.

This rule lasts until a savings scheme replaces it. Under the Social Protection Law, that scheme is funded at 9 per cent of a foreign worker's basic wage each month, held in a personal account at the Social Protection Fund. The Fund's board sets the start date, and the law requires it by July 2027 at the latest. In March 2026 the Fund told the Oman News Agency that it aims to launch the scheme in 2027, with the employer paying the 9 per cent. Until then, set aside gratuity money under Article 61.

Workplace rules, disputes and penalties

Internal rules. A firm with 25 or more workers needs a penalties regulation approved by the Ministry under Article 55, and a firm with 50 or more also needs a work regulation under Article 54. If the Ministry does not reply within 2 months, the regulation takes effect.

Remote work. Ministerial Decision 523/2025 allows full or partial remote work, but only from inside Oman, and a fully remote contract must be in writing.

Disputes. A worker must file a claim with the Ministry before going to court, and the Ministry has 30 days to settle it. A dismissed worker has 30 days to complain. If a court finds a dismissal unfair, it orders reinstatement or pay of 3 to 12 months' wages, plus the gratuity and notice pay.

Fines. Breaches of the leave, rest day and pay timing rules cost OMR 100 to OMR 300 per worker. Breaches of rules such as working hours, gratuity and wage transfer cost OMR 500 to OMR 1,000 per worker. Both double for a repeat breach.

Frequently Asked Questions

Does the Oman labour law apply to foreign workers?

Yes, Royal Decree 53/2023 covers Omani and foreign workers in the private sector. Some parts, such as the Article 61 gratuity, apply mainly to foreign staff.

How many hours can an employee work in Oman?

8 hours a day and 40 hours a week, or 6 a day in Ramadan for Muslim workers. With overtime, total daily hours cannot exceed 12.

What notice must an employer give?

30 days in writing for monthly paid staff and 15 days for others, under Article 38. The contract can set a longer period.

Has the Oman labour law changed in 2026?

Yes, Royal Decree 66/2026 repealed Article 146 and moved private sector bribery into the Penal Code. Separately, sick leave insurance for foreign workers started on 19 July 2026.

City Squares is an authorised agent of the Ministry of Commerce, Industry and Investment Promotion, based in Muscat. We help employers set up contracts, work permits and payroll compliance through our post company formation services, and our note on PRO services in Oman explains the day-to-day filings. Rules change by royal decree and ministerial decision, so confirm current figures before you commit to a contract or policy.