The Sultanate of Oman is the second-largest state in the GCC and possesses a wider range of natural resources than most other Gulf nations. Oman plays a leading role in the Arabian peninsulas external trade, and the private sector is driving the continuing development of the country. Oman has a population of nearly 3 million and about one third of the workforce are expatriates.

Employment in Oman is regulated by the Labour Law, issued in accordance with Sultani Decree 35/2003, and the various Ministerial decisions that amend it, and the Civil Transactions Law, issued in accordance with Sultani Decree 29/2013.

The Labour Law regulates the employment of all workers in the private sector, other than domestic servants. It governs employment contracts, wages, overtime pay, leave, work hours, industrial safety, labour disputes, and the employment of Omani and foreign nationals.

The provisions of this law shall not apply to:

  • members of the armed forces and public security organisations and employees of the state administrative and other government units

  • members of the employers’ family who are sponsored/dependent on the employee

  • domestic servants working inside houses or outside houses such as a driver, maid or a cook and those with similar jobs.

The Ministry of Manpower (MOM) shall by their decision issue the rules and terms of work relating to these categories.

The employer may establish schemes which are advantageous for the employee, provide additional benefits or enter into agreements, the terms of which are more beneficial than the terms provided for in this law. If a condition in this law contradicts any of the conditions set out in such schemes or agreements, the condition which is more beneficial to the employee shall apply.

Expatriate employees are also subject to the Law of Expatriates Residence issued by Sultani Decree 16/1995 and the regulations and decisions made by the Royal Oman Police dealing with employment visas and residency permits.

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