Definition
The Oman Labour Law (Royal Decree 35/2003, as amended) is the primary legislation governing employment relationships in the private sector. It sets out the rights and obligations of employers and employees regarding contracts of employment, working hours, wages, leave entitlements, occupational health and safety, termination, and end-of-service benefits. Public sector employment is governed by separate civil service regulations. The Labour Law applies to all workers in the private sector, including expatriates, though certain categories (domestic workers, agricultural workers in small holdings) have separate or limited coverage.
Context in Oman
Key provisions include a standard working week of 45 hours (reduced during Ramadan), annual leave of 30 calendar days, maternity leave of 50 days, and mandatory end-of-service gratuity for workers who complete one year of service. Employment contracts must be in Arabic and registered with the Ministry of Labour. Fixed-term and indefinite contracts are both permitted. Termination requires valid cause and notice periods, with wrongful dismissal claims adjudicated by labour courts. The law also mandates social insurance contributions for Omani workers through the Public Authority for Social Insurance (PASI). Recent amendments have strengthened protections against wage theft, introduced electronic wage protection systems, and expanded workplace safety requirements.
Key Data Points
| Metric | Value |
|---|---|
| Primary legislation | Royal Decree 35/2003 |
| Standard working week | 45 hours (reduced in Ramadan) |
| Annual leave | 30 calendar days |
| Maternity leave | 50 days |
| End-of-service gratuity | 15 days per year (first 3 years), 30 days after |
Vision 2040 Connection
Labour law reform is integral to Vision 2040 goals of creating a flexible, productive, and fair labour market. The strategy calls for modernising employment legislation to balance worker protection with business flexibility, encourage private-sector employment of Omanis, and align with international labour standards.
Further Reading
- [[What is Omanisation]]
- [[What is Tashgheel]]
- [[Oman Company Formation Guide]]