Muscat – H E Dr Mahad bin Saeed bin Ali Baawain, Minister of Labour, issued Ministerial Decision No 390/2026 on Sunday introducing new regulations governing agencies recruiting non-Omani workers, with the rules coming into force on January 1, 2027.

The Ministry of Labour said the framework aims to strengthen oversight of recruitment offices, improve service quality, protect the rights of employers and workers, and establish a transparent and balanced contractual relationship among all parties.

Dr Saif bin Mohammed Al Busaidi, Adviser to the Minister of Labour for Labour Welfare, described the regulations as an important step towards developing the sector, enhancing the reliability of recruitment offices and curbing unregulated practices.

The new framework restricts recruitment activities to offices licensed by the ministry and introduces unified contracts and forms, a register of licensed offices, financial guarantees and defined procedures for handling disputes.

To obtain a licence, the owner, partners and authorised signatories must be Omani. The owner or one partner must be dedicated full-time to managing the business and registered with the ministry as an employer. Applicants must also register with the Authority for Small and Medium Enterprises Development and submit a financial guarantee of RO 5,000 to the ministry.

The guarantee will help ensure that recruitment offices meet their contractual obligations and protect employers and workers if those obligations are breached. Offices must also provide suitable business premises, appropriate accommodation for workers and comply with occupational safety and health requirements.

Under the new rules, recruitment offices must use ministry-approved contracts. The recruitment service will carry a two-year guarantee, while the period for recruiting a worker must not exceed 45 days.

Worker protection is a key element of the framework. Recruitment offices are prohibited from collecting any fees from workers for recruitment and must provide accommodation and care while workers remain in their custody. A job offer specifying the wage and nature of work must be available before recruitment.

The framework establishes procedures for resolving disputes through the ministry, including specified timeframes for handling complaints and mechanisms to ensure financial obligations are met. The ministry will monitor licensed offices and take regulatory action against violations.

Penalties include fines of RO100 per worker for recruiting domestic workers through unlicensed channels, RO50 per contract for failing to use approved contracts or provide required job offers, and RO500 for the unauthorised transfer of a recruitment licence, which may also lead to licence cancellation and publication of the agency’s name on the ministry’s website.

The regulations also introduce measures to facilitate business operations. The licensing fee has been reduced to RO300 for two years, the number of temporary licences increased to 25, and offices may open branches after holding a licence for one year, provided an Omani manager is appointed.

The ministry said the reforms are intended to raise professionalism, improve recruitment services and strengthen confidence in the sector while supporting stability in Oman’s labour market.

Key penalties for recruitment agencies

1. Illegal recruitment: RO100 per worker for recruiting domestic workers without a licensed office

2. Contract violations: RO50 per contract for failing to use approved contracts

3. Licence violations: RO500 for unauthorised licence transfer, plus possible licence cancellation and publication of the agency’s name

4. Worker protection: RO100 per worker for violations involving allowances or required travel tickets

5. Compliance and management:

• RO500 for allowing a non-Omani to manage the office, plus deportation costs
• RO200 per worker for failing to conduct medical examinations
• RO300 for conducting unauthorised activities