This study aims to clarify provision of arbitrary dismissal of unlimited period contract in accordance to Omani labor law by answering the following questions: • 1- Is the right of terminating unlimited period contract unrestricted right which is used by a person without taking any responsibility of part two as long as part1 adhere to notification condition? 2- What do we mean by "Arbitrary dismissal of unlimited period contract"? And are there any cases, standards or criteria that make a person abusive? 3- What is the judges' attitude of arbitrary dismissal of labor contract? 4- Is there any responsibility from arbitrary dismissal? What sort of responsibility is it? How it can be approved? What is the sanction of this responsibility? To answer these questions, the researcher has divided his study into three sections "the historical roots of arbitrary dismissal of unlimited period contract and the attitude of labor law". The researcher has specified chapter 1 to clarify the concept of arbitrary dismissal of unlimited period contract" and chapter 2 shows "judicial and legislative applications of the arbitrary dismissal". In last chapter, he discusses the retribution arbitrary dismissal of unlimited period contract". From the most important results, the study has achieved: 1- The right of terminating labor contract of unlimited period is restricted to its use, which means that there should be a logic and legal justification interest otherwise it is abusive. 2- Arbitrary dismissal of labor contract of unlimited period contract means: "use procedure of labor contract of unlimited period in frame of objectivism that aims to achieve illegal or trivial or harming to other part". 3- The judges in Oman have agreed that the right to terminate of labor contract of unlimited period is restricted to not abuse which gathered several applications for arbitrary dismissal. Besides, the applications of justified terminate or the project has stated as the following: Terminiate for economical reseasons in building, terriminate as application of omanization system, and teriminate for qualification of the employee, 4- the part who terminated the labor contract of unlimited period as arbitrary dismissal, is responsible to compensate to other part of the damage that is caused by the termination. The compensation can be by returning the employee to his job or pay amount of money, and the judge has the choice. 5- The judge has to take into consideration the employer's finical condition as the fair concept of compensation that is used by Omani legitimator.