Oman Tightens Rules for Expat Recruitment Agencies
The Oman Ministry of Labour has unveiled a sweeping new regulatory framework governing agencies that recruit non-Omani workers. Set to take effect on January 1, 2027, these measures aim to professionalize the sector, increase oversight, and safeguard the rights of both employees and employers across the Sultanate.
Established under Ministerial Decision No. 390/2026 by the Minister of Labour, HE Dr. Mahad bin Saeed bin Ali Baawain, the new rules introduce stringent requirements for licensing, ownership, and operational conduct.
Strict Omani Ownership and Licensing Mandates
To ensure local accountability, the Ministry has mandated that all recruitment activities must be conducted through offices specifically licensed by the Ministry of Labour. A significant shift in the new framework is the requirement for national identity in leadership: all owners, partners, and authorized signatories must be Omani nationals.
Furthermore, the business must be managed full-time by either the owner or at least one partner, who must also be registered as an employer with the Ministry. To operate under these new standards, agencies must also:
- Register with the Authority for Small and Medium Enterprises Development.
- Provide a financial guarantee of RO 5,000 to cover potential obligations.
- Appoint an Omani manager if they intend to open branches after one year of operation.
In an effort to support businesses, the license fee has been reduced to RO 300 for a two-year period, while the number of available temporary licenses has been increased to 25.
New Protections for Expat Workers
The reforms place a heavy emphasis on worker welfare and the elimination of unregulated practices. Most notably, agencies are strictly prohibited from collecting any recruitment fees from workers.
To ensure transparency and prevent exploitation, the recruitment process must now adhere to several strict protocols:
- 45-Day Recruitment Limit: The entire recruitment process must be completed within a maximum of 45 days.
- Unified Contracts: Agencies must utilize ministry-approved, unified contracts for all workers.
- Mandatory Job Offers: Before arriving in Oman, workers must be provided with a formal job offer that clearly details their wages and the specific nature of their work.
- Service Guarantees: Every recruitment service provided will come with a two-year guarantee.
- Duty of Care: Agencies are held responsible for providing suitable accommodation and care for workers while they remain in the agency's custody.
Heavy Penalties for Non-Compliance
The Ministry has introduced a tiered system of fines to ensure these regulations are taken seriously. Violations will result in significant financial and administrative consequences:
- RO 100 per worker: For utilizing unlicensed channels to recruit domestic workers.
- RO 50 per contract: For failing to use approved contracts or failing to provide formal job offers.
- RO 500: For the unauthorized transfer of a license, an offense that may also lead to the immediate cancellation of the license and the public naming of the agency.
Additional penalties will also be applied for infractions regarding medical examinations and the hiring of non-Omani management personnel.
Dr. Saif bin Mohammed Al Busaidi, Adviser to the Minister, stated that the reforms are intended to increase professionalism, eliminate unregulated practices, and stabilize the labor market.
Existing licenses will remain valid until their current expiration dates, at which point all renewals must comply with the new 2027 mandates.