Oman to Enforce Strict New Recruitment Rules for Expats
The Oman Ministry of Labour has announced a major overhaul of recruitment regulations for non-Omani workers, aiming to enhance transparency and protect the rights of both employers and employees. Issued via Ministerial Decision No. 390/2026, these stringent new rules are set to come into full effect on January 1, 2027.
The new policy, introduced by Minister of Labour Dr. Mahad bin Said bin Ali Ba'owain, is designed to regulate the recruitment of domestic workers. This sector is vital to the daily lives of thousands of expatriate families residing in the Sultanate, including a significant number of Indian nationals.
New Requirements for Recruitment Agencies
Under the new mandate, the recruitment landscape will undergo significant changes to ensure higher standards of accountability. Key provisions include:
- Mandatory Licensing: All recruitment activities must be conducted exclusively through offices officially licensed by the Ministry.
- Omanization of Ownership: To ensure local oversight, all license holders, partners, and authorized signatories must be Omani citizens.
- Financial Security: Agencies will be required to provide a mandatory financial guarantee of RO 5,000.
- Strict Timelines: The maximum allowable timeline for the recruitment process has been capped at 45 days.
- Service Guarantees: A compulsory two-year guarantee period is now mandated for all recruitment services provided.
In a significant move to protect vulnerable workers, the Ministry has strictly prohibited recruitment agencies from charging any recruitment fees to the workers themselves. Furthermore, agencies must use only Ministry-approved employment contracts and job offers to ensure legal compliance.
Licensing Fees and Compliance
The Ministry has also adjusted the administrative costs for agencies, setting the license fee at RO 300 for a two-year period. While existing licenses will remain valid until their current expiration dates, all subsequent renewals will require agencies to meet the new regulatory standards.
To ensure these rules are taken seriously, the Ministry has outlined heavy penalties for non-compliance:
- Unlicensed Recruitment: A fine of RO 100 per worker for those recruited through unlicensed channels.
- Contract Violations: A fine of RO 50 for breaches related to employment contracts.
- Unauthorized Transfers: A fine of up to RO 500 for the unauthorized transfer of licenses.
These measures represent a concerted effort by the Omani government to create a more structured and fair labor market for the expatriate community.