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Oman Ministry of Labour Reinforces End-of-Service Benefit Rules for Private Sector Employers

Mandeep Kaur
Last updated: August 7, 2026 8:00 am
By Mandeep Kaur
3 Min Read
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Oman Ministry of Labour Reinforces End-of-Service Benefit Rules for Private Sector Employers
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Oman’s Ministry of Labour has urged private sector employers to adhere to procedures concerning end-of-service benefits, directing that employees should be compensated fully and promptly upon termination of their contracts. The ministry wants to reinforce protections for workers’ rights in the Sultanate.

The ministry stated that employers must provide employees with payments they are entitled to in accordance with the Labour Law and the terms of their contracts. The ministry has reiterated its instructions to private-sector establishments to ensure the implementation of measures pertaining to the rights of employees who resign or are dismissed from jobs, including the settlement of dues upon termination of employment. This is done in order to regulate the practices in private-sector establishments, and to guarantee the rights of employees to receive money due to them in accordance with Oman’s Labour Law, said the ministry.

Under the applicable regulations, eligible workers are entitled to receive end-of-service gratuity after completing the required period of service, unless they are covered by another legally recognised retirement or social protection scheme. The ministry urged companies to settle all outstanding dues without unnecessary delays, noting that timely payments are an important part of maintaining fair employer-employee relationships.

Officials also highlighted that final settlements should include all amounts owed to the employee, including unpaid wages, accrued leave entitlements and any other contractual benefits where applicable. Employers were advised to maintain accurate employment records and ensure calculations are made in line with the legal framework to avoid disputes or violations.

The ministry encouraged both employers and employees to familiarise themselves with their rights and responsibilities under Oman’s Labour Law. It added that compliance with end-of-service payment requirements contributes to a stable labour market, protects workers’ financial interests and supports confidence in the private sector.

The latest reminder forms part of the Ministry of Labour’s wider efforts to strengthen oversight of employment practices across the Sultanate. By reinforcing existing regulations and encouraging voluntary compliance, the ministry aims to promote a fair and balanced working environment while ensuring that labour laws are implemented consistently across all sectors.

The ministry reiterated that respecting end-of-service obligations is not only a legal requirement but also an important element of responsible employment practices, helping to protect workers while fostering trust between employers and their workforce.

Mandeep Kaur
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