Oman Notice Period: The Complete 2026 Guide

How Oman's new Labour Law sets notice for open-ended and fixed-term contracts, and which wage is used for payment in lieu.

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Oman's 2023 Labour Law overhaul (Royal Decree 53/2023) reset the rules on notice periods. The headline is a 30-day notice for monthly-paid workers on open-ended contracts — but fixed-term contracts work very differently. This guide covers both, plus the wage basis for payment in lieu.

The rule for unlimited contracts

Article 38 gives either party the right to end an unlimited (open-ended) contract with written notice: 30 days for a worker paid monthly, or 15 days for a worker paid on another basis — unless the contract sets a longer period.

Fixed-term contracts are different

A fixed-term contract generally cannot be ended early simply by giving notice — it runs to its agreed end date. It can usually only be ended early for cause (Articles 40/41) or by mutual agreement. So if you are on a fixed-term contract, the 30/15-day notice rule for mid-term termination does not automatically apply.

Payment in lieu

If the notice period is not observed, compensation is based on the comprehensive (gross) wage — unlike Bahrain, where the equivalent calculation excludes most allowances. This is an important difference: Oman's notice-in-lieu can be materially larger for a package with significant allowances.

Worked example

A monthly-paid worker on an unlimited contract, OMR 600/month comprehensive wage, notice paid in lieu:

Because 30 days equals one month, the payment is exactly one month's comprehensive wage. Try your own figures on the Oman notice period calculator; the rule is on the Oman notice period guide.

The separate non-renewal notice

Do not confuse Article 38 (30/15 days to end an unlimited contract mid-term) with the separate rule at Article 36(5), which requires at least one month's notice if an employer does not intend to renew a fixed-term contract. They cover different situations.

How notice fits with the rest of your settlement

Notice pay is separate from your end-of-service gratuity and your unused leave encashment. All three should appear in a proper final settlement. For the step-by-step method, see how to calculate Oman notice pay.

Key takeaways

• Unlimited contract: 30 days notice if monthly-paid, 15 days otherwise (Article 38).
• Fixed-term contracts run to their end date; early exit needs cause or mutual agreement.
• Payment in lieu uses the comprehensive (gross) wage.
• Non-renewal of a fixed term needs at least one month's notice (Article 36(5)).

Unlimited vs fixed-term: the key distinction

Almost every Oman notice question comes down to which contract type you are on. An unlimited (open-ended) contract can be ended mid-term on 30 days' notice (monthly-paid) or 15 days (otherwise) under Article 38. A fixed-term contract is different: it is a promise to employ for a set period, so it generally runs to its end date and cannot be ended early simply by serving notice. Knowing your contract type is the first step to knowing your notice position.

The comprehensive-wage payout

When notice is paid in lieu on an unlimited contract, Oman uses the comprehensive (gross) wage — your full pay including allowances. This is more generous than Bahrain, which uses a narrower basic-plus-social base for its notice payout. For an allowance-heavy package, the difference is significant, so it is worth confirming that your in-lieu figure was calculated on the comprehensive wage and not on basic only.

Non-renewal is a separate rule

Do not confuse mid-term notice with non-renewal. If an employer decides not to renew a fixed-term contract at its end, Article 36(5) requires at least one month's notice of that decision. That is a distinct obligation from the Article 38 notice for ending an unlimited contract early — they apply to different situations and should not be blended.

Notice and the rest of your settlement

Whichever way your contract ends, your gratuity and leave encashment are calculated on their own rules and are payable independently of how notice is handled. A complete final settlement should list notice, gratuity and leave as separate lines. For the calculation method, see how to calculate Oman notice pay.

Key numbers at a glance

Glossary

Unlimited contract — an open-ended contract with no fixed end date. Fixed-term contract — a contract for a set period, which normally runs to its end date. Comprehensive wage — full gross pay including allowances, used for notice in lieu. Article 38 — the provision setting the 30/15-day notice for unlimited contracts.

The bottom line

Your contract type decides everything: unlimited contracts end on 30/15 days' notice; fixed-term contracts run to their end date. Payment in lieu uses the comprehensive (gross) wage, and non-renewal of a fixed term is a separate one-month notice under Article 36(5).

Putting it into practice

Knowing the rule is one thing; applying it to your own situation is another. Here is what you need to do the calculation confidently.

What you'll need to run the numbers

For an Oman notice calculation, identify your contract type (unlimited or fixed-term), your pay frequency (monthly or otherwise, which sets 30 vs 15 days), your comprehensive (gross) wage, and the notice days not served. The contract type is decisive, because fixed-term contracts generally cannot be ended early on notice at all.

When to get professional advice

Seek advice if you want to leave a fixed-term contract early, if there is a dispute over whether the comprehensive wage was used for payment in lieu, or if the situation is really a non-renewal (Article 36(5)) rather than a mid-term notice (Article 38). The calculator covers the standard unlimited-contract case.

Frequently asked questions

How much notice is required in Oman?

For an unlimited (open-ended) contract: 30 days if you are paid monthly, 15 days if paid another way, under Article 38 of Royal Decree 53/2023 — unless your contract sets a longer period.

Can a fixed-term contract be ended early with notice in Oman?

Generally no. Fixed-term contracts run to their end date and can usually only be ended early for cause (Articles 40/41) or by mutual agreement.

What salary is used for payment in lieu of notice in Oman?

Your comprehensive (gross) wage — not just your basic salary.

Is the notice rule the same as the non-renewal notice?

No. Article 38 (30/15 days) covers ending an unlimited contract mid-term; Article 36(5) separately requires at least one month's notice if an employer will not renew a fixed-term contract.