MUSCAT – This new regulation governs work permits and labour authorisations for expatriate workers, setting a 24-month validity period and establishing a detailed fee structure that includes financial incentives and penalties based on Omanisation rates.

The decision, issued by His Excellency Dr. Mahad bin Said bin Ali Ba’owain, Minister of Labour, is based on Royal Decree No. 89/2020, which established the Ministry and defined its competencies, and Royal Decree No. 53/2023, issuing the Labour Law. The regulation will take effect three months after its publication in the Official Gazette.

The new regulation replaces Ministerial Resolution No. 340/2016 concerning fees for the recruitment and renewal of expatriate worker permits. It outlines clear definitions, procedures, and fee structures for work permits and work practice licences, while ensuring stronger compliance mechanisms and efficiency in service delivery.

Under the updated framework, a work permit – authorising an employer to bring in expatriate workers – will be valid for 24 months, renewable under specific conditions. The regulation also permits adjustments between professional categories with Ministry approval and corresponding fee payments.
Article 3 under chapter one states: ‘The profession specified in the work permit and the work permit may be changed from a lower category to a higher category, provided that the Ministry’s approval is obtained and the difference in fees between the two categories is paid.’

The decision introduces a comprehensive fee schedule covering employers (legal and natural persons), temporary work permits, and service-related transactions. According to the new regulation, the fees for work permits and business licenses to bring in an expatriate worker for clubs, civil society institutions, mosques and churches shall be RO 101.

it also specifies that a 30 percent fee reduction will apply to employers meeting prescribed Omanisation targets, while non-compliance will result in doubling of applicable fees.

The regulation also defines late payment fines (fine of RO 10 shall be imposed on the employer for each month of delay in renewing the work permit or registering the worker’s data), exemptions, and refund conditions, with fines capped at RO 500 per worker. Certain cases – such as worker death, visa rejection, or transfer of services within a specified timeframe – qualify for fee refunds or exemptions.

Employers can recover work permit and business license fees (or request a new license for a nominal fee) under several conditions. These include the worker failing the medical examination or the Royal Oman Police denying the work visa or resident card renewal. Fee recovery is also permitted if the worker dies within 90 days of arrival, permit renewal, or service transfer; if the worker is returned to their country within 90 days of arrival (except for temporary licenses); or if the worker’s services are transferred to another employer within 90 days of arrival (a one-time exception, also excluding temporary licenses). Furthermore, recovery is possible upon the death of the employer (owner of a sole proprietorship or sole authorized partner) without the license being utilized, or if the Ministry cancels or suspends the license due to an administrative or technical error.

The employer is also exempted from late fees in other situations. These include the death of the employer (natural person, owner of a one-person company, or sole authorized partner in a legal entity) for up to one year to allow for correcting the worker’s status. Exemption is also granted if the worker’s medical examination reveals an illness requiring treatment for more than 30 days, a worker’s passport is withheld by a government agency or embassy (limited to the withholding period), a final court judgment declares the establishment bankrupt, the establishment officially registers a liquidation request for up to one year, or a judicial ruling leads to the worker’s imprisonment (exemption lasts until release).

Additionally, specific groups such as persons with disabilities, the elderly, and beneficiaries of family income support will be exempted from certain fees when employing domestic workers, as verified through the Ministry of Social Development and the Social Protection Fund.