Working in Oman offers a unique combination of professional opportunities and cultural experiences. The country has undergone significant economic growth and modernization over the past few decades, making it an attractive destination for both skilled and semi-skilled workers. Although there are challenges, such as adjusting to the climate and cultural differences, the benefits often outweigh them, making Oman a popular destination for expatriates.
Employment contracts in Oman
Once you have signed your contract and your visa application is successfully approved, you are ready to travel and start working in Oman. The local labor law applies to locals and expatriates, with a few differences.
Most of the time, companies in Oman tend to have two contracts. One is registered with the Ministry of Labor, and the other is only for internal purposes between you and your company, which might include a broader scope of work than your position and possibly extended working hours. You should be aware of what you are entitled to by law and also check with your embassy to see if they have specific requirements for their local workers.
Work contracts in Oman shall always be written in Arabic and shall mention specific details such as the position, the scope of work, the salary (with different allowances), the probation period duration, the general working hours, and the duration. The holidays should also be mentioned.
Good to know:
Some expatriate workers only get their annual leave and paid tickets once every two years.
Key facts about the work contract
In general, all contracts include a probationary period of 30 to 90 days.
As per the law, employees shouldn't work more than nine hours per day and a maximum of 45 hours per week, with at least 30 minutes for food and rest.
Each employee is entitled to 30 days of paid leave per year, including weekends, or employers can specify on the contract 20 working days. The paid maternity leave has been extended in 2023 to 98 days, with 14 days to be taken before childbirth, whereas the paternity paid leave is only 7 days.
The latest labor law update has extended employees' paid sick leave entitlement from 10 weeks to 182 calendar days with 100% of pay for the first 21 days and 75% of pay from 22 to 35 days, 50% of pay from 36 to 70 days, and 35% of pay from 71 to the remaining 182 calendar days.
The usual office hours are from 8 a.m. to 7 p.m., depending on the afternoon break's length. All retail outlets are open seven days a week and on public holidays.
As per law, the employer should also pay overtime to all employees, with an extra 25% for day work and 50% for night work.
Good to know:
Overtime is rarely paid, especially for expatriates who are, at best, offered some time off to compensate for the additional time. Therefore, we recommend new employees in Oman be ready to work extended hours, especially when working in the private sector.
Moreover, many companies agree on higher working hours and only one day off per week with their employees. A couple of decades ago, employees in Oman used to have only one day off weekly, which allowed many companies to operate six days per week. Therefore, it is extremely common in smaller companies or in some specific industries to have an internal contract mentioning six working days per week.
Key provisions in Oman's labor law
Oman's labor law is continuously updated to address evolving workplace dynamics. Recently, the law introduced dismissal for poor performance as a new provision. This allows employers to terminate an employment contract due to subpar performance, provided the employee is notified and given at least six months to improve. This change is pivotal in addressing low productivity.
Furthermore, if a terminated employee is Omani, their replacement must also be Omani. Dismissal for economic reasons is also now defined more clearly. It includes conditions like company closure, whether total or partial, a downturn in business, or changes in production that affect staffing needs. Additionally, economic dismissal can be invoked if a company accumulates losses over two consecutive years. However, it's important to note that failure to profit or the shutdown of a commercially nonviable branch does not qualify as an economic reason.
Employers planning layoffs for economic reasons must secure approval from the Ministry of Labor's committee. This measure ensures layoffs are only as extensive as necessary to keep the company viable and prevent bankruptcy. While this list is not exhaustive, it reflects the judiciary's flexibility to consider additional grounds for dismissal, provided the employer justifies the action without abusing their rights. In Oman, dismissals must be substantiated with valid reasons and strong evidence, as courts often view employees as the more vulnerable party in the employment relationship.
Important:
All employees should keep an eye on local newspapers, where all major decrees are published, to avoid unfair dismissals.
The illegal retention of passports by employers in Oman
In Oman, a widespread yet illegal practice persists among companies—retaining the passports of expatriate workers. This practice, primarily targeting Asian employees, has been ongoing for decades. Employers, having invested significantly in recruiting these workers, hold passports to ensure that employees do not depart without notice. Consequently, many workers, fearing job loss, reluctantly surrender their passports and must request their return for travel purposes. Despite its prevalence, this practice is not required of Omani nationals. Given these circumstances, it is crucial for all new expatriate employees in Oman to register with their respective embassies promptly upon arrival, especially those stationed outside of Muscat, where most embassies are located, as remote registration can be challenging.
Omanization: Oman's job nationalization policy
Omanization is a government policy aimed at increasing the employment of Omani nationals in the workforce and reducing reliance on foreign workers. It is part of a broader effort to diversify the economy and improve skills and employment opportunities for Omani nationals. Overall, it is meant to reduce unemployment among the locals.
New positions are always Omanized, so companies can no longer apply for visas. Therefore, even if you have been working for a company for many years, you may be replaced sooner or later by a local. In this case, most expatriates open their own company or shift to another country.
Certain quotas are assigned to different industries and sectors to employ Omani nationals. These quotas vary depending on the sector and size of the company. However, while there is a minimum wage for locals in the Labor Law, there is none for expatriate workers.
Good to know:
Companies are always trying to find the best employees for the cheapest salary, so they have no other option than relying on foreigners. Generally, expatriates at lower levels tend to be paid less than local citizens. The Oman market is a sensitive price market, so increasing expatriate workers' salaries would lead to higher selling prices and wouldn't be implemented unless enforced by law.
Monthly allowances in Oman
Generally, the allowances represent an average of 40% of the overall salary in Oman. These allowances are often determined by the employment contract, company policy, and the specific needs of the position.
Housing allowance is provided to foreign employees to cover or contribute to the cost of housing. It is often paid as a component separate from the salary or reimbursed according to the real rent paid.
Transportation allowance is granted to cover travel expenses related to travel related to workplace and employment-related travel. It may be a monthly fixed amount or a refund based on the actual cost. It is generally paid as part of a monthly salary or reimbursed upon presentation of travel receipts.
Good to know:
Some companies may offer combined housing and transportation allowances as a single benefit package. Some employers also offer fuel cards with a specific monthly amount for employees.
An education allowance is generally given to parents coming to Oman with their children. It covers the cost of an employee's children's education or the employee's professional development. Depending on the job, employees can also be given a travel allowance, which includes lodging, meals, and transportation. It is generally not paid but only refunded upon presentation of the receipts.
While most employees are given a company mobile phone with paid bills, some smaller companies still tend to pay a phone allowance.
Only big corporations give an annual bonus to their employees but rarely mention it in the contract.
Payroll benefits in Oman are designed to cover different aspects of an employee's needs and improve their overall compensation. Specific benefits and their amounts may vary depending on the employer, the job title, and the individual contract.
Important:
New employees in Oman should review their employment contracts to understand what benefits they are entitled to, and employers should communicate these benefits to their employees.
You should also check if the employment contract includes health insurance for the employee and family members. It can include the spouse but exclude children. In general, it is cheaper for companies to add new employees to their existing policies than to give them a monthly allowance.
Private hospitals in Oman can be costly, so it is crucial to check this point when signing a new employment contract. Some smaller companies still reimburse the bills for their employees rather than paying a yearly coverage fee.
Obtaining an ID card in Oman
One of the first things to get done once you reach Oman is to obtain a local ID card. It requires a medical checkup as per the local requirements, generally to be done in Oman, but for certain nationalities, it should also be done in the country of origin. Many hospitals and health centers have a visa medical section, and results only take 24 hours during the weekdays.
The general requirements to obtain a local ID card are a valid passport, preferably more than 6 months before its expiration date, a residence visa, an employment contract registered by the Ministry of Labor, recent passport-sized photographs, and a lease agreement. For this last point, if you don't find your long-term accommodation, your employer can provide acceptable proof of residence.
Most of the process should be done by your company's public relations officer (PRO). However, you will be required to have your fingerprints scanned before getting your ID card. The fee for ID card issuance is usually paid by the employer.
Good to know:
all Omani ID cards are password-protected as they are used for online transactions. You will be asked to create your personal PIN when your card is issued.
Opening a bank account in Oman
Once your Omani ID card is issued, the next step is to open a bank account. First, check with your employer to see which bank they have their account at so you will receive your salary without delay.
All salaries in Oman should be paid by bank transfer. Oman's Wage Protection System (WPS) is an initiative aimed at ensuring the timely and accurate payment of workers' salaries. The system aims to protect workers' rights, increase transparency, and streamline payroll processes in the country.
Employers should use electronic payment methods to deposit wages directly into employees' bank accounts, eliminating the need for cash payments and ensuring a clear record of transactions. They must register with WPS and provide the necessary data on their employees and salary processes. They are also required to submit monthly reports in WPS, describing in detail the salary paid to employees. These reports include employee names, salaries, and payment dates. Employers who fail to comply with WPS rules may face fines, penalties, or other legal consequences.
Good to know:
Initially, opening an account in the same bank as your employer is better. At a later stage, you can easily open accounts with different banks, but your salary should be transferred to the account you have with them to get facilities from a bank.
Obtaining your driving license in Oman
The last step you should take while arriving in Oman is to get your driver's license. Depending on your position, employees can also be given a company car. However, as mentioned above, it is more common to be given a transportation allowance. If some nationalities can easily exchange their existing driving licenses, many still need to go through the driving test in Oman, which can be a lengthy and costly procedure. To exchange your current driving license, you will simply need to have your eyes checked and pay the fees.
Good to know:
The driving license fee for expatriates should be paid every two years.
The work culture in Oman
The dress code
Many companies, especially multinationals, offer modern office spaces with comfortable work areas. Offices may be equipped to varying degrees with facilities such as meeting rooms, cafeterias, and breakout areas. In professional settings, business attire is expected. For men, this typically means a suit, dress shirt, and trousers. For women, a modest dress or business attire that covers the arms and legs is appropriate.
Good to know:
Some companies may have a more casual dress code on Thursdays, but it is important to check your company's specific policies.
The work culture
The Omani work environment is characterized by a combination of traditional values and modern practices: there is a professional and respectful culture with a strong focus on respecting local customs and rules. Office environments tend to be modern and well-equipped, and there is an increased emphasis on employee rights and benefits. Understanding and adapting to these aspects will contribute to a successful and rewarding experience for all employees in Oman.
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