Oman Tightens Rules for Foreign Recruitment Agencies
The Ministry of Labour in Oman has announced a major overhaul of the regulations governing foreign worker recruitment offices. These new, stringent measures are designed to increase transparency and provide much-needed protections for migrant workers throughout the Sultanate.
Formalized under Ministerial Decision No. 390/2026 and issued by the Minister of Labour, Dr. Mahad bin Said bin Ali Ba'owain, the updated framework is set to come into full effect on January 1, 2027.
Strict Ownership and Licensing Mandates
Under the new laws, recruitment agencies must hold a valid license issued directly by the Ministry of Labour. A significant shift in the industry involves ownership requirements; all recruitment agencies—including their partners and official signatories—must now be exclusively owned by Omani citizens.
To ensure accountability and financial stability, the Ministry has introduced several requirements for these agencies:
- Financial Guarantee: Agencies are required to deposit a guarantee of 5,000 Omani Rials (RO 5,000) into a designated Ministry account.
- Licensing Fees: The fee for licensing has been set at 300 Rials, which will remain valid for a two-year period.
Enhanced Protections for Migrant Workers
The new regulations place a heavy emphasis on the rights and welfare of the workers being recruited. To prevent exploitation and ensure a smooth transition into employment, the Ministry has implemented several mandatory safeguards.
Timeframes and Service Guarantees
The entire recruitment process must now be completed within a maximum period of 45 days. Furthermore, agencies are legally obligated to provide a two-year guarantee on the services they provide to ensure long-term stability for both employers and employees.
Financial and Welfare Safeguards
In a major move to protect vulnerable workers, the Ministry has declared that it is strictly prohibited for agencies to collect any fees from workers. Before any employment begins, agencies must also provide a formal job offer that clearly outlines:
- The specific salary to be paid.
- The exact nature of the work to be performed.
Additionally, recruitment agencies are now tasked with facilitating necessary arrangements for the housing and care of the workers they bring into the country, ensuring that basic living standards are met from the outset.