Oman

Employer Of Record In Oman

Skuad's Oman EOR (Employment Of Record) solution helps give insight to businesses that 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 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: 4.7 million

Currency: Rial Omani (RO)

Capital City: Muscat

Spoken Languages: Arabic, English

GDP: USD 78.71 billion

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 on 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:

Having a 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 for 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, 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

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:

Taxes In Oman

Employees and employers have to pay taxes in Oman, which also includes Social Security Contributions. Employers are obliged to pay a 10.5% tax to Social Security, and a 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 for paying corporate taxes in Oman. Once you have served 90 days or more within 12 months, the government considers this duration as a permanent establishment of the organization in Oman and makes you accountable for paying 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.

FAQs

1) What is the employer of record in Oman?

In Oman, being an Employer of Record (EOR) means acting as the legal employer for your Omani staff. EORs handle HR complexities like payroll, taxes, and benefits administration, ensuring compliance with Oman's labor laws. They eliminate your need to set up a local entity, saving time and resources.

2) What is the employer of record for foreign employees?

An Employer of Record unlocks global talent. They become your legal employer globally, handling payroll, taxes, and compliance. No local entity setup is needed. Focus on finding the best talent worldwide, while EORs handle the HR complexities in each country.

3) How does an EOR work?

An Employer of Record streamlines the process of hiring. They act as your legal employer, handling payroll, taxes, and benefits for your workers. This lets you hire talent without setting up a local entity.

4) What is the difference between EOR and PEO?

An employer of record (EOR) legally hires employees for a client company and handles all compliance, payroll, and HR tasks. A Professional Employer Organization (PEO) co-employs the workforce, sharing responsibilities with the client company but typically requires the client to have an established business entity in the country.