MUSCAT — Oman’s Ministry of Labour has introduced a comprehensive penalty and exemption framework under Ministerial Decision No. 602/2025, setting clear fines for delayed renewals, non-compliance, and administrative breaches related to work permits and employment authorisations for expatriate workers.

The decision part of the newly issued Governance Regulation for Labour Authorisation and Work Permits establishes a structured penalty system aimed at promoting compliance and streamlining the management of foreign labour across the Sultanate.

Under the new regulation, a fine of RO 10 per month will be imposed on employers who fail to renew a worker’s employment licence or register their details on time, with total penalties capped at RO 500 per worker. The delay period will be calculated from the worker’s arrival date or from the expiration of the existing licence, whichever applies.

Further, employers who fail to regularise the legal status of workers such as through repatriation, transfer of services, or filing an absconding report face an additional penalty of RO 15 per month for individual employers and RO 20 per month for corporate employers, also capped at RO 500 per worker.

The Ministry said the fines are designed to “ensure accountability and timely compliance” while discouraging neglect of contractual and residency obligations.

Exemptions for specific cases
The regulation provides several exemptions from fines, recognising humanitarian and administrative circumstances beyond an employer’s control. These include:
• Death of the employer, whether an individual or owner of a sole proprietorship, with exemption lasting up to one year to allow for legal settlement or transfer of worker services.
• Worker illness confirmed by medical reports from the Ministry of Health, if treatment extends beyond 30 days.
• Passport retention by government agencies or embassies, limiting the fine exemption to the duration of retention.
• Court-declared bankruptcy or official liquidation procedures for establishments, exempting fines for up to one year from the registration of the liquidation request.
• Worker imprisonment following a judicial ruling, where the fine exemption applies until the worker’s release.

The regulation also grants full or partial fee exemptions for vulnerable individuals hiring domestic help including persons with disabilities, elderly citizens, and low-income families verified through the Ministry of Social Development and the Social Protection Fund.

Compliance and incentives
To encourage adherence, the Ministry reaffirmed that employers meeting Omanisation targets will continue to benefit from a 30% fee reduction, while those failing to comply will see their work permit fees doubled.