MUSCAT – Oman’s Ministry of Labour has introduced new regulations for agencies recruiting non-Omani workers, requiring a RO 5,000 financial guarantee, setting a maximum 45-day recruitment period and establishing a two-year guarantee for recruitment services. The rules will take effect on January 1, 2027.

Ministerial Decision No. 390/2026, issued on October 11 by Labour Minister Dr Mahad bin Said bin Ali Baawain, replaces the previous regulatory framework for recruitment agencies. Existing licences will remain valid until expiry, but renewals must comply with the new requirements.

The ministry said the regulations aim to improve the efficiency and reliability of recruitment offices, protect employers’ and workers’ rights, and establish clearer contractual obligations among recruitment agencies, employers and workers.

Dr Saif bin Mohammed Al Busaidi, adviser to the Minister of Labour for Labour Welfare, said the framework introduces standardised contracts, clearer recruitment procedures, financial guarantees and mechanisms for resolving disputes.

Under the new rules, recruitment agencies must be licensed by the ministry and maintain a register of their activities. The business owner, partners and authorised signatories must be Omani nationals. The owner or at least one partner must also be actively involved in managing the business and registered with the ministry as an employer.

Applicants must register with the Small and Medium Enterprises Development Authority and deposit a financial guarantee of RO 5,000 with the Ministry of Labour. The guarantee is intended to help meet contractual obligations and protect employers and workers if an agency fails to fulfil its commitments.

The regulations also require agencies to maintain suitable business premises and appropriate accommodation for workers, while complying with occupational health and safety requirements.

For employers, the framework introduces ministry-approved standard recruitment contracts and a service guarantee covering two years. Agencies must complete the recruitment process within a specified period not exceeding 45 days.

The rules also strengthen safeguards for workers by prohibiting recruitment offices from charging them fees for recruitment services. Agencies must provide accommodation and care for workers while they remain in their custody and ensure that each worker has a job offer specifying the salary and nature of the work before recruitment.

Licensed agencies are also prohibited from promoting or offering the services of non-Omani workers, under provisions intended to regulate recruitment practices and safeguard workers’ rights.

The new framework establishes procedures for resolving disputes between recruitment offices, employers and workers through the Ministry of Labour. It sets timeframes for handling complaints and provides for the enforcement of financial obligations between the parties.

The ministry will also monitor licensed agencies’ performance and compliance with the regulations, with procedures in place to address violations.

Alongside the new requirements, the regulations introduce measures to facilitate business operations. Licensing fees have been set at RO 300 for a two-year licence, while the number of temporary licences permitted has been increased to 25. Recruitment offices may apply to open branches after one year of holding a licence, provided each new branch appoints an Omani manager.

The ministry will also assess licence applications according to the geographical areas covered by its directorates and labour departments.

The decision repeals the previous recruitment regulations issued under Ministerial Decision No. 1/2011, along with any provisions that conflict with the new framework. It is based on Oman’s Labour Law, promulgated under Royal Decree No. 53/2023, and regulations governing work permits and licences to practise work issued under Ministerial Decision No. 602/2025.