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Employer Of Record In Oman

Employer Of Record In Oman

Skuad's Oman EOR (Employment Of Record) solution helps give an insight to businesses who want to expand their reach in Oman without first establishing a subsidiary or branch office in Oman. Our fast and reliable unified business solutions will help you in your business's expansion process, which includes hiring the employees, handling payroll, and managing your invoices. 

Skuad's Global Employment Platform is a one-stop solution for your business expansion. We give the best assistance to your business with our international network.

Learn more about us here.

Oman At A Glance

Population: 4.445 million

Currency: Rial Omani (RO)

Capital City: Muscat

Spoken Languages: Arabic, English

GDP: 1.8% (2020)

Employment In Oman

Foreigners who want to work and live in Oman need a local company or an Omani national to act as a ‘sponsor.’ You can only work for the 'sponsor,' who is in charge of the procedures for obtaining the visa and residence permit before the authorities.

Oman has an 'Omanisation' policy that gives preference to its nationals in accessing employment and imposes minimum quotas for Omani workers on companies, depending on the sector and job position.

In 2001, The Ministry Of Manpower was established in Oman. The Labour Law of Oman applies to all employees and employers of Omanis and expatriates in the private sector organizations, government, and subsidiaries. Every Omani who is able and willing to work may request that his/her name be entered in the relevant department with a statement of his/her age, qualifications, experience, desires, the job he wishes to join, and other data specified by the Ministry.

The main role of the Ministry of Manpower in Oman is issuing regulations and decisions of the labor laws and organizing the labor market with the participation of the three production parties (the government, business owners, and the workforce). The Ministry is also responsible for growing the proportion of the national workforce which ultimately contributes to supporting the national economy. 

The private sector is under the control of various sources of authority, including the constitution, labor laws, ministerial decisions of the Ministry of Manpower, and social security laws.

Below are some of the benefits and entitlements to an employee in Oman:

Minimum Wage In Oman The minimum wage in Oman is 325 Omani riyals ($844) per month.
Working Hours The maximum working hours in Oman are 9 hours in a day and 45 hours in a week.
Overtime Compensation If an employer wants his/her employees to work overtime, the employer shall pay the employee overtime equal to the basic salary, according to the working hours. Additionally, the employer has to pay 25% extra for working overtime during the day and 50% extra payment for working overtime at night.
Annual Leave
  • The employee can take 30 days of paid leave after completing six months of continuous service with the employer. An employer may schedule annual leave for an employee as per business requirements. If the employee didn't take any leave, he might be compensated with basic pay if it is written in the contract. Employees terminating their employment are also entitled to basic pay for the remaining vacation days if annual leave days are pending.

In addition, all working employees can take four days of emergency leave with gross pay during the year, provided that each leave does not exceed two days.
Paid Public Holidays
  • Businesses have to pay full wages on holidays and occasions decided by the government’s decision as a public holiday in Oman.
  • The employer may sometimes ask the employee to work on an official holiday. In this situation, the employee will receive his/her full wages with an increase of not less than 25%, or to have an alternate day off.
Medical Leave
  • Sick leave is subject to the provisions of the Social Security Law and must be certified by a valid medical certificate stating the reason for illness or absence and must be referred to the medical committee. Sick leave cannot exceed ten weeks per year.
Maternity Leave
  • Upon presentation of a valid medical certificate indicating the date of delivery, a female employee can take a six-weeks maternity leave before and after delivery.
Special Leaves Workers can take special leaves with full payment in the following cases:
  • The employee can take leave for three days for his/her wedding. He can take this leave only once during his/her tenure.
  • Employees can take three days of leave for the death of his/her daughter, son, mother, father, wife, grandmother, grandfather, brother, or sister.
  • Leave for two days for the death of an aunt or uncle.
  • 15 days to perform the Hajj; he/she can obtain it only once during the period of his/her work, provided he/she has worked for a whole continuous year.
  • Omani workers studying at an institute, university, college, or school can avail of 15 days of leave annually to take exams.
  • A leave of 130 days shall be granted for the death of a spouse. Death certificates are required and should be submitted to the concerned authority to prove this.
Employee health benefits Oman The government of Oman offers free healthcare for its nationals. Expatriates have to take private healthcare insurance for themselves.
Leave Cash Out Annual leave pay can be encashed by employees at each week of vacation or in advance to vacation at request by the employee to the employer.

Having thorough knowledge of the laws governing employment in Oman will help your organization save considerable time and effort spent while expanding your business in Oman. Hence, partnering with an EOR like Skuad would be an ideal plan of action. Talk with Skuad’s experts for more details.

Contractors vs. Full-Time Employees

Employment contracts in Oman

When hiring an employee in Oman, a contract must be signed between the worker and the entity in which he works and it should be written in Arabic. If the contract is written in another language, then a contract copy should be given to each of the parties, and at least one copy of the written document must be attached to it in the Arabic language.

The employment contract must include the following:

  • Name of the company and the address of the establishment and work
  • the worker's name, date of birth
  • qualification, profession
  • workers place of residence 
  • the nature and type of work
  • duration of the contract
  • basic payment or benefits
  • sufficient notice period before termination.

Fixed-term and Indefinite Employment Contracts In Oman

Fixed-term employment contract

According to the employment contract law of Oman, a fixed-term contract involves signing a contract to complete specific work within a specified period of time. This kind of employment contract automatically terminates the employment on the stipulated expiry date or termination date. The maximum duration of a fixed-time contract is five years.

Indefinite employment contract

Oman’s employment contract law does not specify a termination period with this type of employment contract. This contract ends with a mutual agreement between the two parties. The employer has to give prior notice to the employee before the termination.

Probation and Termination

Probation period

The maximum probation period for those who receive their wages monthly is three months, whereas it is one month for those who receive their wages at other intervals. An employer cannot appoint the same probationary worker more than once. The probationary period shall be counted as a period of service if the worker passes the probation period.

Termination of employment

  • An employer can terminate a work contract without intimation and without payment of severance pay on the basis of serious misconduct in accordance with Article 40 of the Labor Code and similar circumstances. Otherwise, the minimum notice of termination of an indefinite contract is one month when the employee receives a monthly salary, and 15 days in all other cases.
  • An employer cannot terminate an employment contract without a valid reason. If the employer has no legitimate reason, the employee can file a claim for compensation with the service where the arbitration takes place.

An employer can terminate without prior notice or dismiss an employee without severance pay in the following cases:

  • In case of false identity, claiming citizenship, or submitting false certificates or documents, or committing a mistake that leads to significant material and financial loss to the business owner. The employer is obligated to inform the competent department of the violation in writing.
  • Failure to comply with the instructions for the safety of workers or the workplace, despite being notified in writing, provided that such instructions are in writing and posted in a noticeable place whose violation is likely to harm the workplace or workers.
  • Absence for more than seven consecutive days without informing the employer, or for more than ten non-consecutive days in a year; This dismissal must be submitted in writing to the employee after the first five days of absence.
  • Disclose any commercial information related to the company.
  • The worker will be liable to imprisonment in either of the two categories for a period that may extend to a year or more for a crime he/she committed or if he/she is convicted of committing a crime at his/her workplace and during working hours.
  • If the employee is found drunk or under the influence of drugs at work.
  • Attacks the employer, manager, or other employees.
  • Convicted of an intentional act or omission with intent to harm the employer.

It is advisable to take the help of an Employer of Record like Skuad, who can help you comply with the local labor laws. Skuad also eases the process of creating labor contracts and managing all local compliances to avoid future legal obstacles.

EOR Solution In Oman

Companies entering Oman must decide whether to use their own resources and approach or use an Employer of Record Solution to take care of payroll and employment responsibilities. An EOR company in Oman makes it faster, easier, and cheaper to deploy staff if the business does not have an Omani entity established to run payroll.

Setting up everything on your own for your business is a costly and time-consuming process. Skuad’s Oman EOR solution already has a properly incorporated company that is ready to run payroll for your business in Oman.

Skuad offers employer of record services to all those businesses who want to expand their business in Oman. Skuad's EOR service provides a ready to deploy EOR solution that will help run your business payroll in Oman in no time. Talk to Skuad’s experts here.

Types Of Visas In Oman

Oman Visit Visas
  • The visitor visa is the most common visa that allows basic entry into Oman. All foreign nationals need a valid entry visa to enter Oman unless they are from a GCC country.
  • Visitor visas come in various forms, including business, tourist, and family visitor visas. Not all types of visitor visas allow an employee to engage in business activities.
  • Visit visas come with the validity of one month except for the family travel visa, which allows a stay of three months.
  • Foreigners can obtain visitor visas at any entry point into the Sultanate of Oman.
Scientific Research Visa Scientific Research VISA In Oman
These visas are similar to visitor visas. This visa is issued to foreigners who enter Oman to conduct scientific research under the approval of a competent authority through a local employer.
Oman Employment Visa Oman work visa requirements
  • Employers must obtain a work visa for any foreign worker who is 21 years of age or older to enter Oman.
  • The maximum duration for a work visa in Oman is 2 years. Even after getting the work visa, the employee cannot work unless all necessary applications, including a residence permit, are processed.
  • Employees with work visas must not leave Oman for more than six months; this does not apply to family members with work visa.
Investor Visa Oman Investor visa is applicable for foreigners who want to invest money in Oman. To acquire an investor visa in Oman, the applicant must apply to the Ministry of Commerce and Industry.

Work Permits

In Oman, a local Skuad partner can sponsor foreign workers with work permits. As an EOR in Oman, Skuad will fulfill all requirements and responsibilities related to your business. The client company can manage their worker's daily activities and operations on Skuad's HR platform.

Oman work permit for foreigners:

An employer can obtain a work visa in Oman, which a foreign person can use for employment in this country, and the minimum age required to obtain this visa is 21 years. This visa is valid for 3 months from the issuing date.

Conditions and qualifications required to get a job in Oman

  • The business owner must legally submit the application form.
  • A person who wants to work in Oman must be at least 21 years old, and the maximum age is 60 years old.
  • A person who obtains a work visa in this country must do the work that is specified in the work permit issued by the Office of Labor Affairs, and he cannot work at another job.

Payroll & Taxes In Oman

Expanding business in Oman is not as easy as choosing an office space and going to work. You need to prepare for Omanis payroll, hire employees, and pay benefits. When you need a partner to help you scale quickly, Skuad's EOR Solution can make a difference with effective payroll management in Oman via Skuad’s unified employment platform

Payroll In Oman

Companies can choose payroll options from the following:

Remote Payroll The company may run its payroll to add all the employees of its subsidiary. The remote payroll option can simplify your payroll process.
Internal Payroll If you have a long term plan to work in Oman, you may create an internal Oman payroll at your subsidiary company. Skuad HR solution can help you to set up an internal payroll.
Payroll outsourcing Oman You can also outsource your company's payroll. Oman Payroll Processing Company can help you to outsource your payroll in Oman.on can simplify your payroll process.
Skuad EOR Solution The simplest option is to opt for outsourcing payroll in Oman with Skuad EOR Solution. Our EOR Solution will help your companies payroll and compliance matters in Oman.

Taxes In Oman

Employees and employers have to pay taxes in Oman, which also includes Social Security Contributions. Employers are obliged to pay 10.5% tax to Social Security, and 1% tax is paid for injuries and illness.

Employees have to pay 7% tax as Social Security tax in Oman.

As a business owner, you are also accountable to pay corporate taxes in Oman. Once you have served 90 days or more within 12 months, the government considered this duration as a permanent establishment of the organization in Oman and makes you accountable to pay 15% corporate tax from the taxable income. 

Oman actively seeks to attract foreign investors, especially in the manufacturing, tourism, education, and information technology sectors. Investments that transfer the latest technology, create jobs, and provide professional training to Omani nationals are the most in-demand and are supported by the authorities.

Business Opportunities in Oman

In the electricity sector, the increased demand for electricity from both households and companies implies the need to build new power plants. Likewise, the total dependence on gas and oil to generate electricity has led the government to seek new sources of generation such as renewable energy, coal, or nuclear energy. Within renewable energies, the construction of a solar concentrating plant of between 50 and 100MW is currently underway.

The development of urban and industrial areas in Oman implies the need to increase the capacity for the generation of water resources through desalination plants and the expansion of infrastructures to manage waste.

In the construction sector, Oman is immersed in the development of its transport infrastructure. We can highlight the construction of the industrial port of Duqm, which hopes to become, in the long term, a port of reference worldwide; the development of the road network, to interconnect the main urban centers of the country through toll roads; and the improvement of air transport infrastructures.

Oman depends heavily on the import of food and the emigration from rural areas to urban centers has led the Omani government to modernize the agricultural and fishing sectors. This represents an opportunity both for companies that want to export inputs and capital goods and companies that invest in fishing, aquaculture, or agriculture operations.

Incorporation: How To Incorporate A Subsidiary In Oman

There are various company types you can incorporate in Oman, but the most prevalent company type in Oman is the limited liability company.

This type of company requires two shareholders. The company owners must deposit the required initial capital in a national bank and must submit a document proving the deposit of this amount during the company registration process.

Any foreign person or resident can establish a company in the Sultanate of Oman. However, there are some conditions for doing this:

  • the resident has a capital of 150,000 Omani riyals or provides it with his/her Omani partner,
  • there must be an Omani partner with a minimum of 30% share in the company.

Steps to follow while establishing a subsidiary in Oman:

  • Pay the initial capital deposit in the bank
  • Registration in the Ministry of Commerce and Industry in the Commercial Register
  • Inform the Finance Ministry about the incorporation and tax obligations
  • Registration of the employees for social insurance.

Talk with Skuad’s experts to know more.

Professional Employer Organization (PEO)

Choosing Oman as your next location for your business is a good step that will help you build business relationships in the Middle East. You will need a Professional Employer Organization(PEO) to set up an Omani subsidiary, comply with the Omani subsidiary laws, and continue to run your business in your home country.

Conclusion

Skuad's EOR solution can help your business to make your expansion easier through Oman subsidiary outsourcing. Skuad’s Oman Employment Of Record solution will help your business to start working in Oman. Our team and experts will hire skilled workers, manage your payroll, and source benefits and compensation for your organization, so your only focus will be on growing your company across borders.

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