Oman Labour Law Guide 2026 — Expat Rights, End of Service & Notice Period
Last updated: September 2026 | Based on Royal Decree 53/2023 | Source: mol.gov.om
Oman's Labour Law was significantly updated in 2023 (Royal Decree 53/2023). This guide explains the key provisions affecting expatriate and Omani workers in 2026: end-of-service gratuity, notice periods, annual leave, and working hours. This is a summary for informational purposes — always confirm with a legal specialist for your specific situation.
1. End-of-Service Gratuity — Article 61
📜 Article 61, Royal Decree 53/2023End-of-service gratuity is the lump-sum payment an employer must make to an employee when their employment ends. It applies to both Omani nationals and expatriates.
The Formula
Gratuity = Basic salary × years of service (with partial years pro-rated)
Example 2: Expat employee, 7 years 4 months, OMR 350 basic → 7.33 years × 350 = OMR 2,567
Example 3: Expat, 8 months only, OMR 300 basic → 0.67 years × 300 = OMR 200 (fractions now count)
New Law vs Old Law
| Service Period | New Law (Article 61 min.) | Old Law (reference) |
|---|---|---|
| Less than 1 year | Pro-rated (days counted) | Not entitled |
| 1–5 years | 1 month salary / year | 15–20 days / year |
| Over 5 years | 1 month salary / year (minimum) | 30 days / year ≈ 1.15 months |
Note: For over 5 years, the old law at 30 days ÷ 26 (≈ 1.15 months/year) may exceed the new law's 1-month minimum. Employees are entitled to the higher amount per their employment contract.
What salary is used?
Gratuity is calculated on basic salary only — housing allowance, transport, and other benefits are excluded unless your individual employment contract specifies otherwise.
Who is entitled?
Both Omani nationals and expatriate employees are entitled to end-of-service gratuity. For Omani nationals enrolled in SPF, the gratuity may be managed through the SPF savings programme — check with your employer.
Calculate Your End-of-Service Gratuity
Enter your start date, end date, and basic salary — get your exact gratuity entitlement under Article 61 in seconds.
📋 Open EOS Calculator →2. Notice Period
📜 Article 35–38, Oman Labour LawThe notice period is the advance warning required before ending an employment contract.
- Indefinite contracts: Minimum 1 month notice (by either party). Employment contract may specify longer — if so, the longer period applies.
- Fixed-term contracts: Generally cannot be terminated early without mutual agreement or payment of compensation for the remaining period.
- During probation: The probation period is defined in the contract. Either party may terminate during probation with the notice specified in the contract (often shorter).
3. Annual Leave
📜 Article 61–67, Oman Labour Law| Leave Type | Entitlement |
|---|---|
| Annual paid leave | Minimum 30 calendar days per year (after 1 year service) |
| Public holidays | Official Oman public holidays (typically 10–15 days/year) |
| Sick leave | First 14 days: full pay | Next 14 days: 75% pay | Next 14 days: 50% pay | Further 14 days: 25% pay | After that: no pay (employer may terminate) |
| Maternity leave | 50 calendar days (paid) — Omani women. Expat women: per employment contract (minimum as per law) |
| Paternity leave | 3 days paid |
| Hajj leave | 15 days paid (once per employment, for Muslims) |
| Bereavement | 3 days for immediate family (parents, spouse, children, siblings) |
4. Working Hours
📜 Article 68–75, Oman Labour Law- Maximum per day: 9 hours
- Maximum per week: 45 hours
- Ramadan hours: Reduced to 6 hours/day for Muslim employees
- Rest period: Minimum 1 hour break per day, not included in working hours
- Weekly rest: Minimum 1 full day per week (typically Friday)
Overtime Pay
- Regular weekday overtime: 125% of normal hourly rate
- Weekly rest day or public holiday: 150% of normal hourly rate
- Hourly rate base = Basic salary ÷ monthly working hours
5. Termination Rules
📜 Article 40–42, Oman Labour LawEmployer termination without notice (Article 40)
An employer may terminate an employee without notice (and potentially without gratuity) only for serious misconduct including:
- Providing false identity or forged documents when hired
- Serious breach of employment contract duties
- Causing intentional losses to the employer
- Disclosure of employer's confidential information
- Physical assault on the employer or colleagues
- Absence without justification for 7 consecutive days or 15 non-consecutive days in one year
- Conviction of a crime involving dishonesty or indecency
Employee resignation rights
An employee may resign with notice at any time. Under the updated Article 61, end-of-service gratuity is payable whether the termination is initiated by the employee or the employer, except in disciplinary dismissal cases under Article 40.
6. When Must Entitlements Be Paid?
📜 Article 91, Oman Labour LawThe employer must settle all entitlements:
- On termination by employer: Immediately upon the last working day
- On resignation: Within 7 days of the resignation date
- Delay penalty: The employee may file a complaint with the Ministry of Labour. Courts may award additional compensation for unlawful delay.
7. Filing a Labour Complaint in Oman
If your rights are violated — unpaid salary, withheld gratuity, unlawful termination — you can file a complaint at:
- Ministry of Labour (MOLS): mol.gov.om — online portal or in person at regional offices
- Manpower Exchange: For visa-related issues
- Keep copies of your employment contract, payslips, and any correspondence
Related Tools
Frequently Asked Questions
Is end-of-service gratuity paid on resignation in Oman?
Yes. Under the updated Article 61 (Royal Decree 53/2023), gratuity is payable regardless of whether termination is by the employee or employer. The only exception is disciplinary dismissal under Article 40 for serious misconduct, in which gratuity may be forfeited. If you resign with proper notice, you are entitled to full gratuity for all years of service.
Can I get end-of-service gratuity if I worked less than one year in Oman?
Under the new Article 61, partial years are counted proportionally. An employee who worked 6 months is entitled to 0.5 months' basic salary as gratuity. The old law required 1 full year before any entitlement. This is one of the key improvements in the 2023 update.
How many days annual leave am I entitled to in Oman?
The statutory minimum is 30 calendar days per year after completing one year of service. During the first year, annual leave is accrued proportionally. Many employers grant more than 30 days — check your employment contract.
What happens if my employer doesn't pay my gratuity in Oman?
File a complaint with the Ministry of Labour (mol.gov.om). The process is free. Keep copies of your employment contract, payslips, and any written communication. The Ministry will typically attempt mediation first. If unresolved, the case is referred to the Labour Court. Courts in Oman generally uphold expat workers' gratuity rights.
Does Oman Labour Law apply to domestic workers?
Domestic workers (housemaids, drivers) are governed by a separate system under the Ministry of Manpower rather than the standard Labour Law. Their protections and entitlements differ. If you are a domestic worker, consult the Ministry of Manpower or your embassy for specific guidance.
Disclaimer: This guide is for informational purposes only and does not constitute legal advice. For authoritative information visit mol.gov.om. For specific legal questions, consult a qualified Oman-licensed lawyer. Last updated: September 2026.