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Employer of Record Oman (EOR Oman)

Our Employer of Record Oman service enables clients to hire employees in Oman without the need to operate a local legal entity there.

It makes a big difference to develop a new market with your own personnel on the ground. Particularly for functions related to sales & marketing, business development, distributor management, and service & maintenance, our customers are very satisfied using our Oman Employer of Record Service. 

Our customers and their local teams can be free of the distractions of administrative tasks and complex local requirements. So you can fully focus on the development of your core business.

If your local business grows large enough, you can easily transfer the employees to your own subsidiary. It also provides a quick exit strategy if necessary. In addition to Oman, we offer Employer of Record services in several other countries.

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Employer of Record Oman - FMC Group's Approach

  • Quick, flexible, and easy entry into Oman in compliance with local employment laws
  • Complete control over business development with your own team
  • Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
  • Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
  • Allowing for easy market exit if necessary.
  • Integrating your employees into our team through motivational events and special meetings

EOR Oman Management & Reporting Flow

Management and Reporting Flow Chart

Hiring an Employee

In Oman, there are two categories of workers: Omani nationals and expatriates residing in the country. Both are protected by fundamental labor laws, which include regulations on maximum working hours, holiday entitlement, sick leave, and termination procedures. While Omani nationals are required to receive a minimum wage, there is no such obligation for expatriate employees.

Employment Contract – indefinite vs. fixed term

Oman’s Labour Law requires a written employment contract in Arabic, with a translation if it’s in another language. Standard forms are used for Omani employees, while expatriates typically have more detailed contracts with extra benefits. While the Labour Law doesn’t specify contract duration, the Civil Transactions Law limits contracts to five years, after which they become indefinite.

Probation Period

An employer has the right to establish a probationary period of up to three months. This probationary period must be clearly outlined in the employment contract.

Work Week, Overtime & Maximum Working Hours

In Oman, the standard workweek typically ranges from 40 to 48 hours, depending on company policies. During Ramadan, the standard working hours for Muslim employees should be reduced to 6 hours per day, or a total of 30 hours per week

Income Tax

Oman does not impose personal income tax on salaries, wages, or any other income earned by individuals. This policy applies equally to both Omani citizens and foreign residents working in the country.

Typical Benefits

Omani nationals can access government-funded healthcare through the Ministry of Health, offering free or subsidized care at public hospitals and clinics. Some employers may also provide private health insurance, covering private healthcare services.

Expatriates in Oman typically receive health insurance through their employers, which covers private hospital and clinic access.

Visa for the Employees

Here are the main types of work permits for foreign nationals in Oman, each with specific requirements and application procedures. It’s important to follow the relevant guidelines and regulations when applying:

  • Employment Visa: Issued to foreign nationals who have secured employment with an Omani employer, this visa allows them to work and live in Oman for the duration of their contract.
  • Temporary Work Permit: This permit is granted to foreign nationals who need to work in Oman for a limited period, typically for a short-term project lasting less than six months

Time off Policies

Public Holidays

Oman observes The following public holidays throughout the year:

  • Public Holidays
  • Accession Day
  • Al Israa Wal Miraj
  • Eid Al Fitr
  • Eid Al Adha
  • Islamic New Year
  • Milad Al Nabi (Prophet Muhammad’s Birthday)
  • Oman National Day

Annual Leave

After completing at least six months of service, every permanent full-time employee in Oman is entitled to 30 calendar days of paid annual leave.

Other Leave Types

  • Pilgrimage (Al-Hajj) Leave: Employees are entitled to 15 days of paid leave for performing Al-Hajj once during their employment, after completing one year of service.
  • Maternity Leave: Female employees are entitled to six months of paid maternity leave, covering both the period before and after delivery. Women taking the ten-week delivery leave also receive pay for their regular annual leave within the same year.
  • Marriage Leave: Employees are granted three days of paid leave for their marriage, once during their employment.

Sick Leave

Employees are entitled to sick leave under the Social Insurance Law. The duration and payment of sick leave depend on the length of the employee’s absence. However, sick leave cannot exceed ten weeks per year, whether taken consecutively or in separate periods.

Terminating an Employee

When permanent employment in Oman is terminated early without fault on the part of the employee, written notice must be provided. The standard notice period for employees paid on a monthly basis is 30 days, though this can be shortened to 15 days if alternative payment arrangements are in place. During the probationary period, which cannot exceed three months, only seven days’ notice is required. Unless the termination is due to gross misconduct, severance pay must be provided. For expatriate employees, severance is calculated at one month’s salary for each year worked. For Omani nationals, it is 15 days’ salary for each of the first three years, increasing to 30 days’ salary for each subsequent year.

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.