Employer of Record Guide in 

Oman

Vacation Leave

• Annual leave: Minimum 30 calendar days per year after completing one year of service
• Accrual: Earned proportionally during the first year of employment
• Carry-over: Up to 30 days can be carried to the following year
• Cash-out: Unused leave must be paid upon termination

Sick Leave

• Paid sick leave: Up to 45 days per year at full salary
• Extended sick leave: Additional 60 days at half salary if medically certified
• Medical certification: Required for sick leave exceeding 3 consecutive days
• Chronic illness: Special provisions for long-term medical conditions

Maternity Leave

• Duration: 98 days (14 weeks) of paid maternity leave
• Eligibility: Available after completing one year of continuous service
• Payment: Full salary during leave period
• Job protection: Guaranteed return to same or equivalent position

Parental Leave

• Paternity leave: 3 days of paid leave for fathers
• Adoption leave: Same entitlements as maternity leave for adoptive mothers
• Nursing breaks: One hour daily for nursing mothers for up to 18 months

Bereavement Leave

• Immediate family: 3 days of paid leave for death of spouse, parent, or child
• Extended family: 1 day for siblings, grandparents, or in-laws
• Religious observance: Additional time may be granted for religious mourning periods

Personal & Family Leave

• Hajj pilgrimage: Up to 30 days of unpaid leave once during employment
• Emergency leave: Discretionary leave for family emergencies
• Study leave: Unpaid leave for educational purposes with employer approval

Summary

Termination Types

Termination With Cause:

• Immediate dismissal without notice or compensation
• Must involve serious misconduct (fraud, breach of trust, repeated violations)
• Requires proper documentation and due process

Termination Without Cause:

• Requires notice period or payment in lieu
• Must provide end-of-service gratuity
• Cannot be discriminatory or retaliatory

Notice Period Requirements

Note: Notice periods apply to both employer and employee-initiated terminations.

Severance Pay (End-of-Service Gratuity)

Calculation based on length of service:

• Years 1-3: 15 days of salary per year
• Years 4-5: 21 days of salary per year
• Years 6+: 30 days of salary per year

Payment timeline: Must be paid within 30 days of termination

Probationary Periods

• Maximum duration: 6 months for most positions
• Termination during probation: Either party can terminate with 7 days' notice
• Extension: Not permitted beyond 6 months

Final Pay Requirements

Employers must provide within 30 days of termination:

• Final salary payment
• Accrued vacation pay
• End-of-service gratuity
• Any outstanding allowances or benefits

Termination Documents & Process

Required documentation:

• Termination letter stating reason and effective date
• End-of-service certificate
• Final settlement statement
• Work permit cancellation (for expatriates)

Anti-Discrimination & Retaliation Laws

Employees cannot be terminated for:

• Filing labour complaints
• Pregnancy or maternity leave
• Religious observance
• Nationality (within legal employment framework)

National Holidays

Note: Islamic holidays follow the lunar calendar and dates vary annually.

Regional Variations

• Muscat: May have additional local observances
• Dhofar: Khareef Festival period may affect business operations
• Northern regions: Some local cultural celebrations

Holiday Pay Eligibility

• Employees must work the day before and after the holiday to receive full pay
• Part-time employees receive proportional holiday pay
• Overtime rates apply if employees work on public holidays

Working on a Statutory Holiday

• Premium pay: 150% of regular wage plus a substitute day off
• Voluntary basis: Employees cannot be forced to work on religious holidays
• Essential services: Some sectors may require holiday work with proper compensation

Required Documents for Employment

For the employer:

• Employment contract in Arabic and English
• Job offer letter
• Company registration documents
• Ministry of Manpower approval

For the employee:

• Passport with valid visa
• Educational certificates (attested)
• Experience certificates
• Medical fitness certificate
• Police clearance certificate
• Passport-sized photographs

Language Requirements

• Official language: Arabic (contracts must be in Arabic)
• Business language: English widely used in international companies
• Translation: All foreign documents must be translated and attested

Background Checks & References

• Police clearance: Required from home country and previous countries of residence
• Educational verification: Certificates must be attested by relevant authorities
• Employment verification: Previous employer references commonly requested
• Medical examination: Mandatory health check upon arrival

Data Protection & Privacy

• Personal data: Employers must protect employee personal information
• Confidentiality: Employment contracts should include data protection clauses
• Government reporting: Certain employee data must be reported to authorities

IP Assignment & Confidentiality

• Intellectual property: Must be clearly defined in employment contracts
• Non-compete clauses: Enforceable but must be reasonable in scope and duration
• Confidentiality agreements: Standard practice for sensitive positions

Probation Period Setup

• Standard period: Up to 6 months
• Performance evaluation: Regular assessments during probation
• Termination rights: Either party can terminate with 7 days' notice

Onboarding Timeline (Sample)

What the EOR Handles

Borderless AI manages:

• Employment contract preparation
• Visa sponsorship coordination
• Government registration and compliance
• Payroll setup and processing
• Local labour law compliance
• Document attestation guidance

Worker Classification: Employee vs Contractor

Employee characteristics:

• Work under employer control and supervision
• Receive regular salary and benefits
• Subject to company policies and procedures
• Covered by labour law protections

Contractor characteristics:

• Provide services independently
• Invoice for work completed
• Use own tools and resources
• Limited labour law protections

Note: Misclassification can result in penalties and back payments of benefits.

Unionization & Collective Agreements

• Trade unions: Limited presence in private sector
• Collective bargaining: Not common in most industries
• Worker committees: Some companies establish employee representative committees
• Government mediation: Ministry of Manpower mediates labour disputes

Cultural Norms & DEI Expectations

Workplace culture:

• Respect for Islamic values and traditions
• Friday as the holy day (reduced hours or day off)
• Prayer time accommodations
• Modest dress codes
• Ramadan considerations (reduced hours, no eating/drinking during daylight)

Diversity considerations:

• Multi-national workforce common
• Gender equality initiatives increasing
• Omanisation policies favour local hiring
• Cultural sensitivity training recommended

Remote Work Considerations

Legal framework:

• Remote work policies must comply with labour law
• Work permits still required for expatriates
• Regular reporting to authorities may be necessary

Practical considerations:

• Internet infrastructure generally reliable
• Time zone coordination with international teams
• Cultural expectations for in-person presence
• Equipment and workspace standards

Cross-border implications:

• Tax residency rules still apply
• Visa requirements unchanged
• Social insurance contributions continue
• Regular visits to Oman may be required